Have you ever wondered which locations are the best for property investment? With so many property options available worldwide, knowing where to invest your time and money can make all the difference. By highlighting the top locations with the most favourable conditions for property investment, we’ll make your job easier by helping you find the right location.

Written by Mike Harvey, MD, 1^st Move International

Real estate can offer significant benefits whether you’re looking to purchase a property to relocate abroad, invest in a holiday home, or simply build a property portfolio.

Sifting through the global real estate market, the team at 1st Move International highlights the countries that will most likely offer you the greatest financial returns on your investment by looking through various factors, from the nations with the highest rental yields to property taxes.

Central and Eastern European countries top the list for real estate investment

1. Lithuania

Real estate investment score: 7.10 / 10

Lithuania is the top choice as the best country for real estate investment, with a score of 7.10 out of 10. Despite real estate prices rising in recent years, investments in this location remain relevant as properties are unlikely to lose value and are a protection against inflation.

Lithuania’s strategic location in the Baltic region enhances its economic prospects. Foreigners living or relocating to the country are not restricted from purchasing property, making it more appealing to investors. With a gross rental yield of approximately 6.44% per annum, the third highest housing rent price (172.10/700), and a maximum of 3.45% buying costs.

Lithuania’s moderate growth rate means that property prices are likely to increase steadily over time, providing a good return on investment.

2. Estonia

Real estate investment score: 7.04 / 10

Estonia follows in second place, scoring 7.04 out of 10. Regarding real estate properties, Estonia provides good investment opportunities and the potential for long-term financial gains. One significant advantage for investors is that buying property in Estonia is open to non-residents and foreigners on the same terms as residents, making the process more straightforward.

With buying costs reaching up to 1.30% and an annual gross rental yield of 4.51%, Estonia is attractive to foreign investors and nationals who want to purchase their own homes. The European country also has an estimated growth rate of 12.30% for international student mobility, meaning more opportunities for investors to rent their property and make a stable monthly income.

3. Romania

Real estate investment score: 6.82 / 10

Romania completes the top three with 6.82 out of 10. The country’s real estate market has a sustainable growth rate, which benefits real estate investors. Romania could offer lucrative investment opportunities, especially in the nation’s capital of Bucharest. Along with two other countries, Romania has the lowest average rental income tax rate of 10% and a relatively high gross rental yield of 6.46% per year, just behind the UK.

Buying costs in Romania range between 1.44% and 3.20%, and foreigners can buy, rent, and sell property. Non-residents can also apply for loans through the Government’s “First Home” program, which offers housing benefits such as lower down payments and better interest rates for first-time homebuyers.

Belgium and France are among the worst countries for real estate investment

1. Belgium

Real estate investment score: 2.90 / 10

Belgium tops the list as the worst country to invest in real estate, scoring 2.90 out of 10. This placement is no surprise since the country has the highest roundtrip transaction cost of 22.50%, and its buying cost is 17.50%, which is higher than any other country.

Due to strong demand, many major cities tend to have higher property prices. As a result, Belgium is among the top five countries with the highest average rental income tax rate (36.83%) and income property taxes (50%).

2. France

Real estate investment score: 3.21 / 10

France is known to be an expensive country to live in, and investing in real estate in France also comes with a hefty price tag. Businesses looking to buy property in the country can expect to pay a corporate tax of 25%, which is on the higher end compared to other countries.

Real estate investors’ average rental income tax rate is 18.28%, while income property tax is 45%. France is also in the top five with one of the highest roundtrip transaction costs, 19.31%, and buying costs, 14.31%.

3. Greece

Real estate investment score: 3.76 / 10

Although Greece has become a popular destination for real estate investment in recent years, especially for residential properties, it scores only 3.76 out of 10. Surrounded by thousands of islands and breath-taking landscapes, Greece is a tourist hotspot, making it a prime investor target.

However, the country is in the top 10 with one of the highest average rental income tax rates, over 33%, and income property taxes of 44%. Greece also has a relatively high buying cost of 8.09%, which can become quite expensive for investors looking for property costs.

Spain and Portugal are among the most popular countries for buying property

1. Spain

Global searches for buying property: 279,000

As one of the world’s best-known holiday destinations, it’s unsurprising that Spain is the most popular country for people looking to buy real estate, with over 279,000 Google searches between 2023 and 2024.

Due to its favourable tax laws, Spain offers attractive income from Spanish real estate for non-resident tax benefits to foreign investors, such as its flat tax rate (The Non-Resident Income Tax), which is lower than in many other European countries.

2. Portugal

Global searches for buying property: 270,700

With a growing real estate market, Portugal ranks second with 270,700 Google searches on search terms relating to buying property in the country. One great advantage for investors is that foreigners have equal rights to Portuguese nationals when purchasing and owning property without restrictions.

The country’s relatively open and straightforward property ownership regulations also allow non-residents to purchase various properties, from residential homes to commercial properties.

3. Greece

Global searches for buying property: 181,960

Greece has long been a sought-after destination for tourists. Despite not being seen as one of the best countries for real estate investment, many potential investors have their eye on this holiday destination.

In the last year, 181,960 Google searches were made by people looking to buy real estate property in this sun-kissed country. This interest is likely due to the high potential for investors to generate considerable income from renting property out to visitors.

The UK is the most popular country for renting property

1. United Kingdom

Global searches for buying property: 312,200

The UK’s strong economic growth and increased job opportunities attract more residents and increase the demand for rental properties. Therefore, it is unsurprising that the UK tops the list with 312,200 Google searches from 2023 to 2024 for those looking to rent in the country. The country is in the top ten with one of the highest annual gross rental yields of 7.03%, which is bound to have caught investor’s attention.

2. Canada

Global searches for buying property: 251,060

With 251,060 Google global searches in the past year alone, Canada is one of the most popular countries for those looking to rent. Its 5.10% annual gross rental yield is eye-catching to potential investors, especially as Canada has seen a decent increase in population growth rate (0.71%) and an impressive international student mobility growth rate of 17.62%, meaning more opportunities for investors looking to rent out their property in the country.

3. Italy

Global searches for buying property: 144,470

Italy ranks third as one of the most popular countries for those interested in renting property, with 144,470 Google searches in one year. A top destination for holidaymakers, Italy is a prime residential location globally. With a higher annual gross rental yield (7.38%) than the UK, investors can increase their monthly income, especially with many potential renters on the market.

Methodology

To find out which countries offer the best opportunities to property investors, we examined various determining factors, including the housing rent price index/ 700, which was taken from the OECD’s Housing Prices Index (2024-Q1).

Data on Rental Yields and Property Taxes by country was sourced from the Global Property Guide. This data was last updated in June 2024, considering the following factors:

Rental yields:

• Gross rental yield (% per annum)
• Average rental income tax rate

Property taxes:

• Income tax on rent
• Roundtrip transaction cost
• Buying costs
• Selling costs
• Corporate tax

Using OECD’s International Student Mobility data, we sourced the percentage of international tertiary students enrolled as a proportion of the total tertiary students enrolled in the destination (host) country in 2020.

Using The World Factbook, we collected data on these countries’ population growth rates as of 2024. This data compares the average annual per cent change in populations resulting from a surplus (or deficit) of births over deaths and the balance of migrants entering and leaving a country.

To find the countries with the best investment opportunities, each country was given a normalised score out of 10 for each factor before calculating the overall average score out of 10 for each nation. The factors that positively affect investors were ranked higher, while those that negatively affect investors were ranked lower.
We used Google’s Keyword Planner to gather global search data on the most popular countries for buying and renting properties, using search terms relating to renting and purchasing property [house/flat/property in X] from July 2023 to June 2024.