South Africa has been ranked as the third-worst country for property tax and associated costs, with an average property tax rate of 23.12%, according to a global analysis by UK-based relocation experts, 1st Move International Removals. The study, which examined the highest average property tax rates across various countries, highlighted South Africa’s high income tax rate (45%) and elevated transaction costs as key challenges for property investors. Despite this, the country’s growing demand for housing continues to offer opportunities for long-term returns.

Globally, Singapore ranked first with an average property tax rate of 35.58%, driven by a 68.45% roundtrip transaction cost on rental properties. Belgium followed in second place with a 24% property tax rate, which includes one of Europe’s highest income tax rates at 50%. South Africa’s high transaction costs, combined with its corporate tax rate of 27%, place it among the most expensive countries for property investment, deterring many potential investors.

In terms of overall investment attractiveness, South Africa ranked fourth-worst globally, scoring 3.77 out of 10. This ranking was based on factors such as high corporate taxes and property transaction costs. Belgium ranked as the least attractive country for real estate investment, followed by France and Greece.

On the positive end, Lithuania was identified as the best country for property investment, scoring 7.10 out of 10. Despite rising real estate prices, investments in Lithuania are viewed as stable, providing protection against inflation and offering better prospects compared to other global markets.