WHAT IS QUALITY?...

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FOR CLIENTS, THE ANSWER IS SO MUCH MORE THAN COMPLIANCE WITH STANDARDS

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By Rhys Madoc, CEO, UHY International

December 2021

In accountancy, quality – at one level – is about making sure everything we do meets regulatory standards or legal requirements. Meeting these is the very minimum our clients expect. For example, international accountancy networks including UHY help to provide this assurance through membership of IFAC’s* Forum of Firms, conditional on meeting stringent quality standards.

But we know that quality goes beyond compliance. To help clients meet their objectives, we need to do more. Quality is also about service levels – for example, how reliable and responsive we are; how well we communicate; and how far we tailor our products to meet clients’ particular requirements.

 

A culture of quality

How do accountants nurture a culture of quality? We start with the basics. At its core, quality is about offering a consistently professional service, regardless of client size or spend.

Quality is caring about the total client experience, from first phone call to project handover – through prompt responses to queries, well-articulated proposals, a thoroughness in everything we do, and a determination to meet our deadlines and keep our promises. This is not a legal or statutory requirement. It is a commitment to our clients, delivered through our people.

Forging relationships is also about driving quality. When we get to know clients well, we are better able to understand their motivations and help them realise their ambitions. They turn to us for advice, and we become trusted advisors, a real mark of quality.

 

It is also what we do when nobody is watching

So what else does quality mean? To answer that, we need to understand that most professional services providers are now so much more than technicians.

Not only do we need to be experts in audit and assurance, tax, accounting and a host of business advisory disciplines, we also need to be highly knowledgeable about the wider globally-connected business world, and the challenges and opportunities our clients face every day.

That is why, for accountancy, the old adage is true. ‘Quality is what we do when nobody is watching’. That is what sets firms and networks apart.

For example, it is the insight we accumulate that does not just help businesses stay compliant, it helps them move forwards. It is the experience we bank through working in a variety of industry sectors. But above all, it is the client-centred cultures we work in that help us deliver value on top of expected technical expertise.

 

The UHY way

Our own client-centred culture has been the driving force behind the UHY global network since its foundation 35 years ago so it is not a fad or fashion, but a decades-old fundamental philosophy of how we do business together as a network across more than 100 countries.

In this sense, quality is about striving for seamless collaboration. Our firms meet regularly, share best practice and – most importantly – understand that with cross-border work the quality of one member firm reflects the reputation of the entire network. This engagement between our offices ensures we know the right person to contact in each country to meet client needs and address those needs quickly and efficiently. We pride ourselves on being cohesive, with a joined up approach to supporting all clients and cross-border initiatives. You can learn more about what quality means to UHY in our Capability Statement, where clients share their experiences of working with our member firms.

In other words, quality is an operational imperative for UHY, but we never stand still. Regulators, clients and the wider business world move on, and we move with them. We are a top 20 global accountancy network for a reason. We work hard for our clients, even when nobody is watching.

 


*IFAC is the International Federation of Accountants. “We are the global voice for the accountancy profession. We serve the public interest through advocacy, development, and support for our member organisations and the more than 3 million accountants who are crucial to our global economy.”  Source: www.ifac.org

WHY DIALOGUE IS THE SECRET TO LONG-LASTING RELATIONSHIPS...

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WHY DIALOGUE IS THE SECRET TO LONG-LASTING RELATIONSHIPS

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By Rhys Madoc, CEO, UHY International

November 2021

One of the signs that a relationship may be breaking down, is when dialogue stops and as a consequence regular communication and engagement is disrupted.

Both personal and professional relationships are similar, in that mutual trust and understanding are crucial, and both are prone to leach away over time unless the parties involved actively work to maintain them.

Cementing relationships

In accountancy, for example, there is always a risk that a relationship may drift. At the start of a contract, dialogue is regular and frequent, as the scope of work is agreed, benchmarks are set and timelines negotiated. In this honeymoon period, regular communication is a priority for everyone concerned.

As the relationship matures, that urgency can fade. The work becomes routine. As long as the tasks remain the same and are carried out satisfactorily, it is easy to believe that nobody feels the need for that random, off-diary chat. In client relationships spontaneity can start to feel like an unnecessary use of valuable time.

At UHY, I believe our member firms work hard to resist this tendency towards drift – indeed, I frequently hear how our longstanding clients value their ongoing relationships with our member firm professionals. If the last couple of years have taught us anything, it is that nothing cements relationships like regular dialogue. During the pandemic, UHY member firms around the world reported a range of positive outcomes for clients from unprompted, off-diary contact.

Talk is cheap – and valuable

To be clear, these are not sales calls or scheduled quarterly meetings. They might involve nothing more than a quick call to ask how the client is coping, or an unprompted email pointing them to a new source of Covid-related advice. Clients are appreciative of this attention, and often initiate these contacts themselves, if only because they are grateful for the opportunity to talk to someone who listens and understands.

What the pandemic shows us is the obvious – but sometimes underappreciated – value of honest and spontaneous dialogue. To me, this is too important to let disappear with the pandemic. When provider and client talk regularly, freely and without the time and subject matter constraints of a scheduled meeting, good things invariably happen.

At the very least, you build mutual trust. Talking through current challenges together reconfirms your relevance. Clients get to better understand your business and the value of service and expertise at their disposal. You show that you understand their world, and can keep them abreast of developments that might impact or benefit their business.

Dialogue is never wasted

Dialogue is a two-way street, and these occasions give both parties the opportunity to listen. Developing keen listening skills is important. By listening, we may each discover opportunities to add more value to the relationship.

Dialogue is never wasted. Open, honest conversations encourage clients, for example, to tell you what they need (beyond the basic stipulations of your contract), what they really value in your relationship, and the best way you can deliver your services.

Our member firms in the UHY network strive to achieve this kind of partnership in every engagement, to be the kind of professional provider a client can confide in, turn to for advice, solicit a recommendation from and look to when they want to be challenged or inspired. Ambitious businesses have always benefited from professional service experts who offer ideas and insight as well as competent technical skills. In short, they want trusted advisors.

Creating closeness

Both clients and advisors can make it easier for dialogue to flow. For example, swapping direct contact details, rather than generic ones. If you are located in the same city, it might mean meeting for a coffee every now and then. Or setting up a chat or instant message group, so either party can fire off a quick question by text when picking up the phone is not an option.

In my experience, clients also appreciate the sharing of relevant economic and industry news and the chance to discuss any implications for them specifically. And for accountants today, social media can be a great way to stay front and centre of your clients’ thoughts. Blogs, publications and newsletters all help.

Dialogue enables empathy and responsiveness to client needs. It provides a platform to offer value beyond tax or audit expertise. And it opens up the path to becoming a trusted advisor.


Umbrella photo by Redd on Unsplash

Calling photo by Magnet.me on Unsplash

Coffee shop photo by Toa Heftiba on Unsplash

ACCOUNTANTS AND ESG...

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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

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By Rhys Madoc, CEO, UHY International

October 2021

Environmental, Social and Governance is taking over from Corporate Social Responsibility (CSR) as a way for businesses to demonstrate a measurable commitment to sustainability.

ESG covers environmental impact, company culture and leadership, and takes into account factors like diversity, inclusion and board composition, as well as more familiar green and philanthropic measures.

Pressure for more responsible business is being applied by consumers, regulators and investors. ESG is an acknowledgement that sustainability in particular, is evolving from a voluntary ambition to something that increasingly feels like a requirement. Compared to CSR, ESG provides measurability.

Which is exactly where accountants come in, of course. We prove that businesses are what they say they are. We use professional expertise and experience to interrogate the evidence and come to firm, factual conclusions. We have a huge role to play in ESG reporting.

ESG reporting is inconsistent

More fundamentally, we have a role to play in deciding what ESG reporting actually involves. ESG is in its infancy, and reporting standards and frameworks are still inconsistent, which can create confusion for companies, consumers, investors – and accountants.

Paul Polman, the former CEO of Unilever, recently wrote in the Harvard Business Review that “investors are increasingly asking companies to report on their sustainability performance. Having a set of standards will greatly improve this dialogue and enable both to better understand the relationship between sustainability and financial performance”.

Accountants are already part of the development of these standards. Bodies like the International Federation of Accountants (IFAC) and International Accounting Standards Board (IASB) are pushing for the creation of consistent global criteria against which ESG claims can be judged.

Accountants are reporting specialists

Accountants are experts at setting and adhering to standards, and are trusted by corporations, investors and regulators to provide reliable information. New frameworks and standards that marry financial and non-financial reporting – showing the effect of each on the other – will cement accountancy’s position at the heart of the ESG reporting process.

Global standards for ESG will help business to develop and prove responsible practices. With that in mind, accountancy firms big and small are able to take steps today to develop the skills and specialisms required to offer non-financial auditing and reporting services to business clients.

The opportunities are clearly there for those who do. Why wouldn’t a business trust its ESG reporting to the firm that expertly completes its financial audit every year? Accountants are the right people for the job.

Clients want ESG advice and expertise

Certainly, clients want us on board as they navigate new ESG reporting standards, and we have written about this in the latest issue of UHY Global, our business magazine. In the feature The Colour of Money is Green, Joyce Bruce, sustainability and CSR manager at UHY Fay & Co, UHY’s member firm in Spain, says companies are increasingly seeking her services because of regulatory pressure to provide non-financial reports.

There is a wider perspective too. According to Datuk Alvin Tee, group managing partner of UHY’s member firm in Malaysia, “there are changing expectations of the role business plays in improving society and protecting the environment”.

That requirement is filtering through the business world, so we see for example how large firms are demanding that smaller companies prove their own environmental credentials as part of a sustainable supply chain.

Investors are also pushing for consistent, reliable ESG information, as more evidence points to sustainable businesses providing better returns in the long term. In fact, Black Rock – the world’s largest asset manager – published an ESG Integration Statement in May this year outlining the company’s ‘firm-wide commitment to integrate ESG information into our investment processes’. Research shows that three quarters of institutional investors now consider ESG factors an integral part of sound investing.

ACCOUNTANCY EXPERTISE WHERE IT IS NEEDED

As the clock ticks down towards national and global environmental deadlines, it is fair to assume the demand for ESG reporting will grow. Experts also predict that, in the near future, other business measures such as executive remuneration could also be tied to ESG metrics alongside financial performance.

If our profession acts now, accountants will be well placed to meet the environmental, social and governance reporting needs of our clients as ESG becomes established.


Green images courtesy of UHY Global magazine issue 12 ©UHY International

RECOVERY...

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THE GLOBAL ECONOMY IS WAKING FROM ITS COVID SLUMBER, BUT WHAT WILL DRIVE RECOVERY? WE SUGGEST THREE POST-PANDEMIC DRIVERS OF GROWTH

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By Rhys Madoc, CEO, UHY International

July 2021

According to the Organisation for Economic Cooperation and Development (OECD), many national economies will recover to pre-pandemic levels in 2022. Globally, gross domestic product (GDP) will grow 5.8% this year, the OECD forecasts. This is more promising than its previous forecast in December, which predicted GDP growth of 4.2%.

While this is good news for the wider economy, businesses will want to know how it translates to their own sector. The global economic outlook may be positive, but the recovery is likely to be uneven. Here, we consider three factors likely to drive the post-pandemic rebound, and what they might mean for different parts of the economy.

ONE: CONSUMER SPENDING

This is the big one. In many countries consumers are sitting on large reserves of cash they were unable to spend during lockdown. An unprecedented 6-20% spike in savings rates across China, the US and Western Europe in 2020 suggests that consumers have the disposable income to drive post-pandemic recovery. That is already boosting economies in the Middle East, where oil production is beginning to recover. Many African economies are also starting to rebound.

The OECD agrees about the potential for a “rebound of consumption, notably of services.” Leisure, hospitality and retail are clearly the big winners here, but the ripples will be felt through manufacturing, food production, logistics and more. On the downside, the big loser could be international travel and tourism. There is a chance that the consumer boom will have faded before borders are fully unlocked.

So how sustainable is a consumer-led recovery in the longer term? Quite simply, we do not know. Consumers around the world are spending money on restaurant meals and cinema tickets as economies open up, to “make up for lost time.” How long this spending spree will last depends on how much the pandemic has altered behaviour.

Nervous consumers may want to keep larger savings pots for peace of mind after the pandemic experience. If more people switch to permanent home working, retail and hospitality that serves the daily ebb and flow of commuters may suffer.

TWO: tech-led productivity surge

One potential driver of growth is the fact that, post-pandemic, we are all a bit more efficient at doing what we do. That is not because of any Covid-induced superpower. It is simply because companies have been forced to adopt new technology and processes during the pandemic that would otherwise have taken years to become fully accepted.

We have also noticed across the UHY network that Covid-19 has pushed some client businesses to adopt process innovations that were technologically possible, but largely under-utilised before the crisis.

The story is largely about technology, though pandemic home working may also have hastened the decline of inefficient and rigid top-down company hierarchies. The uptake of cloud computing, automation and robotics, among others, has been marked – one study suggested companies digitised many activities 20 to 25 times faster than they had previously even thought possible.

Economists have calculated that these innovations could result in 1% labour productivity growth to 2024, leading for example to per capita GDP increases of around USD 1,500 in Spain and USD 3,500 in the US. They say this would be a “stunning outcome” but accept that it depends on these innovations filtering down through entire economies, and not being limited to large ‘superstar’ companies. But regardless of the exact result, many sectors such as ICT, healthcare, construction and retail, seem likely to record the biggest gains.

THREE: THE GREEN ECONOMY

Governments around the world have expressed the desire to “build back better” after the pandemic. At the same time, populations have lived through a global crisis, with citizens of wealthier nations experiencing empty supermarket shelves and limitations to freedom for perhaps the first time. Looking ahead, environmentalists hope Covid has brought home the realities of crisis management in a very real way – and consequently a fresh perspective on uncontained climate change.

Whether that will prove true is unknown, but governments have responded to the pandemic with a range of fiscal stimuli for green infrastructure projects. In the United States, this faces a long battle to get through Congress, but President Biden’s recent USD 2 trillion stimulus package for the US economy includes significant investment in public transport, clean power and energy-efficient buildings. Around the world, governments from Chile to Canada say they are putting climate action at the heart of post-pandemic ‘build back better’ strategies.

There is a caveat: environmentalists argue that many of these announcements mask more damaging actions, like financial support for fossil fuel companies and airlines through the pandemic. But regardless of the environmental outcome, post-pandemic growth seems likely to be driven to some extent by either direct government investment in sustainable infrastructure or preferential treatment (often through tax incentives) for green businesses. Green manufacturers and construction companies stand to gain most here, though the sustainable energy and transport sectors will also benefit significantly.

Good advice is crucial

In all these sectors, good advice will be crucial for businesses looking to thrive in a changed, post-pandemic world. As part of a global network with vast experience in a wide range of sectors, UHY member firms can help companies and entrepreneurs find new investment, tap into government support and benefit from tax incentives. Operating in every major economy, our professionals provide the on-the-ground expertise businesses need when moving into new international markets. For more information, email Rhys Madoc, CEO, UHY executive office, who will be pleased to help. Or visit the publications page of our website – you will find plenty of free resources to help you in your own journey of recovery and growth.

UHY Global magazine – our twice-yearly business magazine on hot topics around the world

UHY Global Directory – detailing every office in every country, with full contact details

UHY Doing Business In… country guides – a great place to start your international journey

UHY Capability Statement – featuring case studies from our clients’ point of view

Why UHY? – a quick guide to the benefits of choosing UHY as your trusted advisor

 

Photo acknowledgements:
Shoppers: Melanie Lim on Unsplash
Homeworker: Brooke Cagle on Unsplash
Watering: Markus Spiske on Unsplash

GOING GLOBAL – THE RIGHT WAY...

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International ambition makes sense post-covid, but make sure you are fully prepared to meet the challenges ahead

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By Rhys Madoc, CEO, UHY International

May 2021

 

Albert Einstein’s assertion that “in the midst of every crisis lies great opportunity” is perhaps a crumb of comfort in the harsh Covid-era commercial landscape. Business is suffering through the crisis, but vaccines and better treatments have brought hope that the worst might soon be over. Companies have started looking to the future, at opportunities to build back better, and many organisations are now eyeing international markets as part of their post-Covid plans.

 

spread the risk, take the opportunities

Covid has revealed the risk of depending on a single national market. Countries have been impacted to different degrees, depending on factors such as population density, mobility, healthcare systems and the effectiveness of government action. Yet international businesses have been able to keep trading in one country and even on one continent, while operations elsewhere were suspended for extended periods.

And the continued benefits of international expansion still apply. Manufacturing or selling products and services across borders opens up new markets, creates economies of scale and diversifies risk. E-commerce has made accessing global customers easier than ever, offering what can appear a world of almost limitless opportunity for expansionist businesses. Building operations in new jurisdictions is a post-Covid strategy that can make a lot of sense.

 

Fortune favours the well informed

Overseas expansion will always be a calculated risk, but it is a risk stacked in favour of companies who are properly prepared. For all its potential, moving into new markets is not a quick fix. It takes investment, planning, time, and on the ground expertise. If you do not want to run up against hurdles from the very start, make preparations early and ask advice.

 

trading and complying

The challenges of simply buying and selling in another country – from unfamiliar tax regimes to the deal-clinching details of foreign business etiquette – are easy to underestimate. Even the localisation of web content or sales materials can be a complex task, and there are many questions that you must have answers to, such as how well your products and services are known, what is required to secure effective distribution, and how sales cycles differ from those you are used to. You need to understand how reliable the communications infrastructure is, including transport links and broadband services.

 

Most importantly, you must access, understand and comply with local laws and business regulations. The challenges of local production are greater still, and establishing a way forward to acquire, for example, the workforce you need, means local knowledge is paramount.

 

Ask the experts

In all these areas, and more, advice from a knowledgeable and trusted third party is invaluable. UHY is a global network of accountancy and consultancy firms operating in over 100 countries with offices in nearly 330 of the world’s major business centres. When you contract the services of a UHY member firm, you not only get all the local knowledge you need, but also access to the collective knowledge of commercial specialists from around the world. This means whatever your challenges, our member firms will have solutions.

 

35 years ago the UHY network was founded to help businesses take advantage of new opportunities overseas. Ever since, our member firms have been working closely together to make sure clients enjoy long term cross-border success.

 

think global, plan local

Early local input to your strategic and operational plans can make a real difference. Market research, an identification of customers, competitors and sales channels, and a thorough risk and opportunity analysis will ensure your first approach is sound. Exploiting foreign markets takes time, focus and investment. We believe you should leave nothing to chance.

 

As your plans progress, our member firms will guide you through the practicalities of business in your chosen market.

They can coordinate with government bodies on your behalf to ensure compliance with the full range of local registration and filing requirements. And when your overseas operation is up and running, our offices can help you meet local accounting and auditing requirements, accurately and on time.

 

tax

The significant complexity of multiple tax regimes can quickly become a barrier to overseas ambitions. Crucially, UHY tax experts will ensure you are paying the tax you need to pay, and never more than that. Issues of transparency, country-by-country reporting, profit repatriation, foreign tax credit systems or internal trading compliance and transfer pricing should only be handled by specialists with the required local expertise.

 

people

In the early stages of setting up an international operation, relocating senior staff to the new location creates challenges not just with income tax, but also with interpretation of different labour laws, definitions of citizenship and the rights and responsibilities of residents and non-residents. UHY member firms are well versed in the intricacies of human resource management and a comprehensive range of expatriate and mobility services includes international payroll, personal tax, advice on remuneration and benefits based on local circumstances, and social security implications.

 

UHY is a global network with a global vision: to become the first choice trusted advisor for our clients and future clients all over the world. We are the network for doing business locally, nationally, regionally and internationally. Helping businesses find new revenue streams and customers in another country, or on another continent, is one of the most important roles we play. If you are looking to expand overseas, you can rely on a network with global ambition at its core.

 

Resources:

Check out these publications, and more, on our website:

UHY Global magazine – our twice-yearly business magazine on hot topics around the world

UHY Global Directory – detailing every office in every country, with full contact details

UHY Doing Business In… country guides – a great place to start your international journey

UHY Capability Statement – featuring case studies from our clients’ point of view

Why UHY? – a quick guide to the benefits of choosing UHY as your trusted advisor

 

Acknowledgments:

Construction image by Jamie Street on Unsplash

Co-workers with laptops image by Annie Spratt on Unsplash

Governments target property purchases of wealthy to plug deficits

Spain and UK top tables for highest purchase taxes for prime properties

Governments are targeting wealthy property buyers with higher property purchase fees in an attempt to help plug their fiscal deficits, shows research by UHY International. 

The average cost of stamp duty and other compulsory property purchase fees for a property worth USD3.5 million is now 3.4%, compared to the average 2.6% tax burden on more modest properties with a purchase price of USD150,000.  This has been pushed up by recent purchase tax increases on high end properties in countries such as the UK and Spain.

Spain and the UK have some of the highest property purchase taxes targeted at prime properties, which are seen as attracting a large proportion of overseas buyers. 

The UK levies 7% stamp duty on property purchase over USD3.1 million, while Spain’s average taxes and charges of 7% mask a shift towards higher marginal rates for the most expensive properties.   In regions popular with wealthy local and foreign buyers, including the coastal provinces of Andalucía, Cantabria and Asturias, and the Balearic Islands, rates vary from 8% to 10% for more substantial properties.

Earlier this year Hong Kong doubled the rate of stamp duty charged on properties of over HK$2million to 8.5%.  In mainland China, the most expensive properties attract stamp duties and other taxes of 5% of the property’s value, compared to 3% for lower value properties.

Ladislav Hornan, chairman of UHY explains: “In the wake of the financial crisis, national and regional governments have been desperate to plug their deficits.  One populist way to do this has been by levying new top rates of stamp duty on the purchase of the most expensive properties, which often attract foreign buyers.  When the new top rate was announced in the UK, it was in part a response to left-of-centre politicians’ demands for a so-called mansion tax.”

“While some markets might be sufficiently robust to absorb this, governments do need to be careful not to kill off their property market altogether. Economies benefit from the added value that wealthy buyers and an active property market bring to the economy, from spending on refurbishments, to legal fees and employing domestic staff.  Once High- Net- Worth individuals leave, it is hard to attract them back.”

Ireland, despite moving to a flatter stamp duty structure in the wake of the financial crisis, still charges double the rate of stamp duty on the proportion of a property sale exceeding Euro€1,000,000.

UHY also point out that many European economies that do not target prime properties in particular still have relatively high overall property purchase taxes, averaging nearly 4.5% for France, Italy, Austria, the Czech Republic and Germany. 

UHY say that by increasing the costs of buying a new home, these higher property purchase taxes discourage labour market mobility.  By contrast in North America, property purchase taxes are far lower, typically below 1% in the USA and no higher than 1.9% for the most expensive homes in Canada.

Ladislav Hornan adds: “By imposing often very significant additional costs on the purchase of a property, governments may be discouraging people from moving for a new job, especially those with families who might reasonably expect to own their own property.”

“That means that employers have to offer significant pay rises to lure talented staff to a new location, workers opt to do jobs that are below their skills and experience rather than move.  High levels of stamp duty are an easy fiscal option, but in a prolonged recession, they may be a short-sighted one.”

Bernard Fay, co-managing partner of UHY Fay & Co, the Spanish member firm of UHY, says: “Since 2010, regional governments in Spain have made much greater use of their discretion to set their own stamp duty rates, with the result that rates have gradually shifted upwards, especially in areas popular with high net worth individuals and international buyers.”

“Combined with other tax requirements, targeted at wealthy international families, it is starting to make Spain look unwelcoming towards exactly the sort of people who have sustained the economy of many coastal regions of Spain for the last few decades.”

UHY tax professionals studied tax and compulsory property registration charges in 25 countries across its international network, including all members of the G7, as well as key emerging economies. UHY calculated the total taxes and compulsory fees payable to local, state and municipal government on property purchases of USD 150,000 and USD3.5million.

 

 

For a property of USD3,500,000

 

For a property of USD150,000

 

Amount of tax and charges paid

% of property price

 

Amount of tax and charges paid

% of property price

India

 $    280,830.00

8.0%

India

$    12,830.00

8.6%

Spain

$    245,000.00

7.0%

Spain

$    10,500.00

7.0%

UK

$    245,000.00

7.0%

Argentina

$       7,650.00

5.1%

Australia

$    185,830.00

5.3%

France

$       7,640.00

5.1%

Argentina

$    178,500.00

5.1%

Germany

$       7,500.00

5.0%

France

$    178,150.00

5.0%

Austria

$       6,900.00

4.6%

Germany

$    175,000.00

5.0%

Czech Republic

$       6,050.00

4.0%

China

$    165,030.00

5.0%

Mexico

$       5,410.00

3.6%

Austria

$    161,000.00

4.6%

China

$       4,580.00

3.0%

Israel

$    153,340.00

4.4%

Italy

$       4,940.00

3.0%

Czech Republic

$    140,050.00

4.0%

Romania

$       3,820.00

2.5%

Japan

$    113,930.00

3.3%

Australia

$       3,660.00

2.4%

Italy

$    105,440.00

3.0%

Malaysia

$       3,000.00

2.0%

Malaysia

$    105,000.00

3.0%

Netherlands

$       3,000.00

2.0%

Mexico

$      83,220.00

2.4%

UAE

$       3,000.00

2.0%

Netherlands

$      70,000.00

2.0%

Uruguay

$       3,000.00

2.0%

UAE

$      70,000.00

2.0%

Japan

$       1,810.00

1.2%

Uruguay

$      70,000.00

2.0%

Ireland

$       1,500.00

1.0%

Canada

$      66,160.00

1.9%

Canada

$       1,230.00

1.0%

Ireland

 $      57,020.00

1.6%

USA

$       1,110.00

0.7%

Romania

$      55,680.00

1.6%

Estonia

$          170.00

0.1%

USA

$      28,000.00

0.8%

UK

$                    –

0.0%

Estonia

$        3,320.00

1.0%

Israel

$                    –

0.0%

Russia

$                     –

0.0%

Russia

$                    –

0.0%

Slovakia**

$                     –

0.0%

Slovakia**

$                    –

0.0%

 

Notes to table

The calculations assume that both buyers and sellers are private individuals from the country concerned.  Special exemptions, e.g. for new properties, are not taken into account.

Figures for Australia, Canada, Germany, India, Mexico, Spain and USA are national averages.  State and municipal taxes and charges vary.

Russia charges a nominal fee for the registration of new property purchases.  The UAE charges a compulsory 2% of the property price to register a property transaction at the local land department.  The total taxes and fees for Austria include a 1.1% land register fee.

**Slovakia abolished real estate transfer taxes in 2005.

All above percentages have been rounded-off.