Britain, The Cheapest Place in the World to Buy a Flat
Sales of flats in Britain are so lightly taxed by the Exchequer that it is now the cheapest country in the world in which to invest in residential property. Residential investors in the UK have among the world's lowest tax burdens, with a total tax of only 4.86 per cent and 9.48 per cent, respectively, taken from the sale of flats and houses. Taxand's global real estate team assesses Britain's position in comparison to other countries globally.
With Britain coming second-cheapest only to Malaysia for buy-to-let investors, due to no VAT on with residential construction and a rental income tax take of only 21 per cent, it makes it a very attractive jurisdiction for those wishing to invest in property.
Keith O'Donnell, head of real estate at Taxand, said: "Each edition of Taxand's T3 research shows ever more interesting conclusions regarding the benefits and disadvantages of locations from a real estate investors' perspective. The addition of four new countries this year allows Taxand to provide an even broader view across all regions around the world.
"The disparity shown across the globe was surprising, with a number of asset classes showing a 500% increase from the lowest to the highest rankings. It is not necessarily the developed countries that experience the highest rates of tax taken, with many Western European countries sitting at the cheaper end of the table."