Considering the tax costs across the 15 cities, it is a different story. Taxation is highest in Sao Paulo, where in spite of getting more property for your money both at the $1 million and $10 million level, the cost to investors would be around 31.5 percent of the total cost of investing in the fifth year of investing. It is followed by Hong Kong.
"When purchasing property as an investment, tax is not necessarily the first concern but it is important because it is often the after-tax return that measures the success of the investment. Our research shows that the tax burden across the cities in this report varies considerably both in amount and extent," said private client tax services Partner at EY, Carolyn Steppler.
"From 3.5 percent or 3.6 percent of the property price in year five in Monaco and Dubai respectively, to over 30 percent in Sao Paolo. However a common thread across all these countries, which shows no sign of slowing, is a continuing focus on property as a source of taxation," Steppler added.
Here we look at how some the world major cities compare in terms of tax costs: