Canada is the world’s most expensive country to invest in commercial real estate, at least when it comes to how deeply taxes cut into potential profits.

Taxes on commercial property rents in Canada are a “massive" 53 per cent of total income, according to a study by Luxemburg-based tax advisory firm Taxand. That’s 12 per cent higher than the United States, the next country on the list.

“The alarmingly high total tax rate in Canada is largely the combined result of high levels of both income tax, which stands at a rate of 30 per cent and real estate tax at 3.6 per cent," the study concludes.

Finland charges the least tax on commercial rental income at 8.99 per cent.

The taxman takes a smaller bite out of sales, however, with Canada in sixth place with a take near 14 per cent. Norway, with a rate of 21.18 per cent, is the most expensive country, with Malta, India, Brazil and the USA rounding out the top five.

“Our research draws some interesting conclusions regarding the appeal of particular locations for investment in commercial real estate with a number of developed economies such as Canada, the U.K. and the U.S. remaining outside the cheap bracket and less popular choices such as Cyprus, Finland and Luxembourg emerging as attractive alternatives from a tax perspective," Taxand’s head of real estate said in a statement.