A survey of OECD countries found Belgium, Italy and France have “unnecessarily high” transaction costs, with South Korea topping the list with costs equal to 22 per cent of the property’s value.
The report shows countries of French legal origin have significantly higher transaction costs at 14.2 per cent of the property value, compared to countries with German legal systems at 11.9 per cent, Socialist systems at 7.4 per cent, English systems at 6.5 per cent and Scandinavian legal systems at 5.2 per cent.
Transaction costs are typically between 5 and 7 per cent in the UK, Ireland, Norway, Australia and New Zealand.
The report says following the international buy-to-let craze, Britons are buying property in Bulgaria, Turkey and Morocco hoping to repeat the small fortunes they’ve built at home on rising property prices.
The Global Property Guide states: “There’s a thorn in the flesh – the high costs of buying and selling residential property abroad. For property investors, these costs are a significant negative factor.”