One of our recent posts covered some of the main advantages of investing in UK property. Following on from that, this week we will explain in more depth one of its most attractive characteristics: the low cost of UK property investment in comparison with other countries.
Recently released research conducted by Taxand (the world’s largest independent organisation of tax advisors) has shown that the UK is one of the cheapest countries in the world in which to invest in residential property.
The UK’s total tax rate on the development of residential property for sale is 8.88%, the second lowest only after Luxembourg which has a rate of 8.46%. This rate involves the total cost of taxes as they relate to property development, sales, and purchases of property and property rental. In addition to this, UK properties have the fourth highest rental rate of all surveyed countries (23%), making for a significant profit margin.
Charles Beer, Head of Real Estate at Taxand UK stated: “This research highlights the fact that the UK has retained its position as an attractive destination for property developers and investors, primarily because of its low corporate tax rate – currently 23% and reducing to 20% in 2015”. He also highlights that this tax regime, in addition to the attractiveness of the UK market, is bringing in a large number of international investors – especially to London – a trend that is expected to continue growing in the future.
Even though the UK property investment is domestically and internationally attractive, investing in property requires strategy and vision, as not every property will be worth investing in. These are precisely the services that the Mistoria Investment team offers. As UK property investment experts, they will guide and advise you as an investor (whether you are local or international) on the safest and smartest property investment for you. Contact us on 0800 500 3015 or send us an enquiry through our contact form for more information.