British expats moving to Europe are likely to fork out the world’s highest property taxes if they decide to buy a home to live in or rent out as an investment.
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A surprise survey from accounting and consultancy network UHY has ranked how much buyers must pay in tax for a home worth $1 million in 26 global property markets.
The shock result is the European average tax is 3.8% of the buying price, which converts into $38,356, while the global average Is less – 3.3% of the buying price or $33,038.
While landlords and homebuyers in Britain continually bemoan the cost of purchasing homes, the UK sits halfway in the table in 11th place, with purchase taxes adding up to 3.5% of the value of a home or $35,383.
The most expensive place to buy a home in Belgium, where tax eats up 11.3% of the property value and equates to an extra $113,131 on top of the price.
House price inflation strain
Spain, France, Germany, Croatia and Malta also feature in the top 10, along with Pakistan, India, Australia and Uruguay.
New Zealand and Russia are revealed as the cheapest place to buy – property taxes in both are zero.
The USA is 23rd with taxes of 0.5% or $5,970 with Romania 24th at 0.2% or $1,500.
UHY’s Dennis Petri said: “Many economies risk over-exploiting property purchase taxes as a way to bolster finances, so it’s encouraging to see the US exercising restraint.”
“Higher property purchase taxes can put a strain on domestic buyers, who may not actually be particularly wealthy, given house price inflation in some locations over the last decade or two.”
“The United States has one of the lowest tax rates in our study. The low level of tax enables home owners to move more freely from city to city and now, the US is seen as having enviable labour market mobility.”
Property Purchase Taxes For Homes Valued at $1 million
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