Natalie The list of the best countries to invest in real estate abroad changes yearly. Some countries fall out of favour, while others emerge as the latest hotspots. The hype surrounding this selective niche of property markets prove that foreign investment is a sturdy player. With clever investing skills, foreign investors can reap significant benefits, whether buying an apartment or a house.
From major cities to tourism hotspots, the long list of countries generally proves to be more favourable for residential properties rather than commercial properties. With investors factoring in aspects like living costs, property prices, and whether or not the country has a strong economy, there is much global potential for return on investment, which is seen in the number of people looking abroad.
Last year, Mansion Global reported that 92% of wealthy Americans were considering purchasing property overseas. Additionally, in 2024, the English Housing Survey reported that 2.1 million UK households owned a second home, of which 40% were outside the UK.
In recent years, we have noticed that European countries no longer have a stronghold. More foreign buyers are spreading their wings beyond the traditional borders to look at emerging locations in Asia and the Middle East. While European countries have always been favoured for their economic growth, investors think real estate prices and property taxes are equally important. With that in mind, let’s look at foreign countries that offer good opportunities.
Best Countries to Invest in Real Estate Abroad
1: Spain for European Destinations
The time-honoured stability of Spain and its ability to bounce back after the disastrous housing crash in 2008 make this beautiful country a favourite spot for many nationalities including Brits and Americans. Those not looking to earn an income from rent find Spain an attractive destination, with much potential in remote markets that foreigners have traditionally ignored in the last twenty years.
With favourable rates, a solid currency, and, in some places, outstanding value for money per square foot, Spain still retains its title as an ideal overseas property investment. However, those looking at rental property should research the area since some parts of Spain have seen protests against mass tourism. The average buyer misunderstands that these protests hate tourism altogether. They don’t since much of Spain relies on tourism profit, and tourism accounts for 11.6% of the GDP.
These towns and destinations don’t want to eliminate tourism; they just want new regulations on second ownership and rental income to combat rising house prices that make owning property, out of the budget for locals. Sources historically show that the most popular destination for foreigners buying real estate properties is the Alicante region. Sitting on the Costa Blanca, places like La Manga del Mar Menor and Guardamar del Segura see strong demand from foreigners.
2: Turkey for Investment Properties
For the second year running, despite currency fluctuations, Turkey has emerged with excellent investment opportunities and a golden visa that ranks as one of the world’s cheapest and most accessible. However, it is essential to understand the housing markets, as they vastly differ from east to west. Additionally, Turkey has introduced new regulations for those seeking to get additional income from short-term rentals to tourists.
Historically, opportunities for investors have been rife in the populous city of Istanbul, where cash buyers get discounted prices. In contrast, those seeking a second home for personal use or retirement plans generally head to popular tourist destinations on Turkey’s Aegean and Mediterranean coasts.
The Antalya region is a famous foreign market, with places like Alanya showing much potential for property values. The region’s stable economy relies heavily on tourism, attracting Germans, Russians, and Brits, while the Fethiye region attracts those with limited financing options and affordable prices. On the Aegean coast, the Bodrum peninsula is famed for its luxury properties, some of which easily reach six figures or more. When ranking Turkey alongside other countries, it still scores highly for affordable property.
3: UAE For Robust Economies
Once shunned by the Western world, the UAE is now attracting more foreign buyers, thanks to diversified economies, and tax benefits as they shift from oil production to tourism and expat living. Of course, the economies are already strong in tax-free havens like Abu Dhabi and Ras Al Khaimah, with low unemployment rates, stable incomes, and excellent tax rates. But presenting good opportunities for country financing and property management, Dubai is a popular UAE destination since rental apartments dominate a vast market.
Additionally, the number of foreign workers means a high demand for housing, making this a prime location for passive income. Dubai has also implemented its retirement visa to make this an ideal destination for expats. Perfect locations for foreign property ownership include Palm Jumeirah, which has excellent public transportation and rental returns. Otherwise, Dubai Marina is an attractive option at this ideal location’s heart.
4: Costa Rica for USA Buyers
Meanwhile, US foreign nationals have always loved Costa Rica, and this shows no sign of slowing down. With a thriving tourism industry and well-developed infrastructure, it is one of Central America’s most stable countries. Costa Rica ranks highly across numerous surveys for picturesque landscapes as one of the world’s happiest countries, and property investment in places like San Jose, Tamarindo and Playa Flamingo is popular. Offering a ten-year visa for foreigners and favourable income tax benefits, Costa Rica’s legal framework protects property rights, and every foreigner agrees the buying process is easy.
With a focus on eco-friendly living, sustainable practices, and access to healthcare and education, the tourism industry continues to grow, attracting investors worldwide. Expect various options, including beachfront homes, mountain retreats, and luxury villas. Otherwise, the friendly and welcoming local community, known as “Ticos”, and the relaxed pace of life, known as “Pura Vida”, make it easy for expats and foreigners to integrate into the culture and feel at home.
5: France for Excellent Opportunities
France is one of Europe’s safest countries, with political stability, easy foreign ownership, and competitive rates attracting many international investors. One significant aspect is the France Leaseback program, which started in 1986 to encourage investment in major tourist destinations like Paris city centre, the Alps, and the south of France. The program offers freehold ownership, a 20% VAT rebate, total management, a stable income, and income tax incentives. Thanks to government-backed approval, the program appeals to many beginner investors for returns on investment and low-risk tolerance.
France also seems to be addressing climate change issues in the French Alps, which has led to future concerns about local housing markets in prime ski resorts. Local municipalities have implemented eco-friendly and green measures and invested in snow-making machines. Thankfully, with many buyers now turning their back on urban living in big cities, the rural aspect and year-round tourism in places like Tignes and Val D’isere keep buyers coming, and real estate agents are optimistic about the future.
6: Portugal is an ideal destination for Sun, Sea and Sand
Although Lisbon city centre constantly sees investments from foreign nationals, other places in Portugal attract retirees of all nationalities thanks to the stability, economic activity, strategic location, and property ownership rules. The ideal destination has a lower cost of living than other European countries and is the seventh safest country in the world. Portugal also offers tax incentives for new residents, including non-habitual resident (NHR) status, which provides significant tax advantages for retirees and those making direct investments.
Aside from that, for European nationals, Portugal makes the ideal weekend getaway thanks to its excellent air transport schedule, visa requirements, and financial stability, which please those who want to build generational wealth. If you are buying overseas for investment, look at the Lisbon area, especially the Bairro Alto district; otherwise, the Algarve is the second most popular destination.
7: North Cyprus for High Rental Yields
Offering an average of 10.55% gross rental yield per annum, North Cyprus has attracted many retirees who rent, not buy, driving up demand. Cyprus, the Med’s third-largest island, lies approximately 70 kilometres from Turkey and offers residents breathtaking views from various areas of the island, but the non-EU North Cyprus, called the Turkish Republic of Northern Cyprus, uses the Turkish Lira as its primary currency.
Turkish is the primary language, but English is also widely spoken there. Making up almost 36% of the island of Cyprus, it is 100 miles long, 40 miles wide at its widest point, and covers 1357 square miles. Following relaxed border controls, Northern Cyprus (TRNC) is a developing market where numerous new firms thrive, with a surge in property values of almost 50% over the last three years and predicted steady growth for the foreseeable future. Guzelyurt, Kyrenia, Bellapais, and Esentep are popular places.
Tips for Buying Property Abroad
Research Extensively: Understand the local real estate market, the legal framework for foreign ownership, the tax implications, and any restrictions on purchases by non-residents. Visit the location multiple times to get a feel for the neighbourhood, rental market, local amenities, infrastructure, and potential issues like noise or environmental factors.
Consult Local Experts: Hire a reputable local real estate agent and lawyer who understands your home country and the foreign market. They will guide you through legalities, negotiations, and financial transactions. Fluctuations in currency exchange rates significantly impact purchasing power and ongoing costs. To mitigate risks, consider consulting with a currency risk exchange specialist.
Understand Property Laws: Ensure you understand ownership laws, inheritance rules, and any specific regulations related to foreign ownership in the country you’re buying in. Understand occupancy rates, income tax, rental demand, and average rent prices if you want to rent out.
Financial Planning: Calculate all costs beyond the purchase price, including property taxes, maintenance fees, insurance, utilities, and potential rental income if you’re not planning to reside there full-time. Consider the potential resale value and have an exit strategy if you need to sell quickly or unexpectedly.
Title Deeds and Legal Documents: Verify the title deeds to ensure it’s free of liens or disputes, and understand how transfer and ownership works. If necessary, have contracts and agreements translated and review them thoroughly before signing. Understand all terms and conditions, like deposits, payment schedules, and warranties.
Insurance and Taxes: Ensure you have adequate insurance coverage, including liability insurance if you plan to rent it out. Understand local and international tax implications of owning property abroad, including income tax on rental income and capital gains tax upon sale.
Which Country has the Most Expensive Housing?
MSN recently released a report listing the world’s 31 most expensive housing markets. They ranked Hong Kong as the most expensive place to buy property, with prices per square meter reaching an astonishing 30,000 USD. Singapore, Switzerland, South Korea, Luxembourg, China, Israel, and Taiwan followed.
What is an Emerging Property Market?
An emerging market typically refers to a region or country where the real estate sector is experiencing rapid growth, often driven by economic development, urbanisation, and increasing demand for property. Specific signals make them easy to spot.
Economic Growth: Emerging markets often exhibit more robust economic growth rates than developed economies. This growth fuels commercial, residential, and industrial real estate demand as businesses expand and urban populations grow.
Urbanisation and infrastructure: Rapid urbanisation is a hallmark, with many people moving from rural to urban areas in search of better opportunities. This drives demand for housing, retail spaces, and infrastructure. So, development projects like transportation networks, utilities, and communication systems boost property values and make investments more attractive.
Demographic Trends and Foreign Investment: Favorable demographic trends, including a growing middle class and youthful population, increase demand for residential housing and retail spaces. Emerging markets attract foreign investment due to higher growth prospects and potentially higher returns than developed markets. This influx of capital further stimulates real estate sectors.
Regulatory Environment: The regulatory environment varies widely and poses risks to investors. However, governments may also implement policies to attract foreign investment and support real estate development. Investing offers higher returns but comes with higher risks like political instability, currency fluctuations, and less developed legal systems.
Examples include countries in Southeast Asia (e.g., Vietnam, Indonesia), parts of Latin America (e.g., Colombia, Peru), and certain regions in Africa (e.g., Kenya, Nigeria). These markets present opportunities for investors to capitalise on growth and diversify their portfolios beyond more established markets. However, do exercise careful consideration of risks.
Why Diversify Your Real Estate Portfolio Overseas
Risk Mitigation: Investing solely in one market exposes you to specific risks inherent to that market, such as economic downturns, regulatory changes, or local market bubbles. Diversifying internationally helps mitigate these risks by spreading investments across different economies and markets.
Access to Growth Opportunities: International markets may offer higher growth potential than saturated or slower-growing domestic markets. Investing in emerging markets provides access to rapidly growing economies and increases demand for real estate.
Currency Diversification: Owning property in different countries allows you to diversify your currency exposure. This is beneficial if you’re concerned about currency fluctuations affecting your investment returns or want to hedge against currency risks.
Portfolio Performance: Real estate markets perform differently based on economic cycles and regional factors. Diversifying geographically soothes your portfolio’s performance over time, potentially enhancing overall returns and reducing volatility.
Strategic Investment Opportunities: Certain countries or regions may offer unique investment opportunities that are unavailable domestically. This could include specific types of properties (e.g., vacation rentals in tourist destinations) or investment incentives (e.g., residency or tax benefits for foreign investors).
Hedging Against Local Market Conditions: If your domestic real estate market is experiencing a downturn, investing overseas buffers against economic challenges and maintains portfolio stability. International diversification provides flexibility regarding lifestyle choices. Depending on personal preferences and lifestyle goals, it offers options for retirement, vacation homes, or potential relocation.
Global Exposure and Experience: Investing overseas broadens your investment horizons and provides valuable experience navigating different regulatory environments, legal systems, and cultural considerations. This knowledge is beneficial for future international investments.
Use Our Overseas Property Services
Choosing our services to buy property abroad offers several advantages that ensure a smooth and successful investment experience. Firstly, we bring extensive expertise, providing invaluable insights into local regulations, market trends, and investment opportunities. Our team includes seasoned professionals who understand the complexities of cross-border transactions, ensuring that every aspect of your purchase—from legal considerations to financial structuring—is handled with precision and care.
Whether you want a luxury Mediterranean villa, a city apartment, or a tranquil retreat in the scenic countryside, our comprehensive network and meticulous attention to detail ensure that we match you with properties that align perfectly with your investment goals and lifestyle aspirations. Lastly, we guide you through every buying process step, from initial searches to negotiation, due diligence, and final transaction, ensuring transparency and peace of mind.
We provide ongoing support and assistance post-acquisition, helping you navigate the management, rental income strategies, and any unforeseen challenges that may arise. This makes the process of buying overseas not only efficient but also enjoyable and rewarding. See our property portfolio here, or call us today to discuss the best countries to invest in real estate abroad.
