If you’ve decided to invest in overseas real estate and buying a house, you may be wondering which countries are best, which countries will give you the biggest returns, or which countries have the easiest process to get approved for a mortgage or real estate loan. Here are the top 10 best countries to invest in real estate.
The country of bullfighting leads by a wide margin (more than 50%). The reason? The crisis and again the crisis. Since 2008, prices have fallen by 40-50%. And in 2017, the massive recession ended, which spurred the interest of waiting customers.
While Spain has seen a major decline in its economic fortunes since the meltdown, many of the basic reasons why you would invest in real estate there still exist. It has some of the finest – and the most extensive – beachfront property in Europe. And it has become a haven for investors throughout Europe. Many once high-priced properties are now going for just pennies on the dollar, creating an excellent opportunity not only to find a good place to live, but also excellent investments. The best cities to invest in which have the highest rental returns are places like Barcelona and Madrid.
Spain is a country where foreigners are eligible for in-country financing. Also there is a possibility for non-european citizens to obtain a “golden visa,” which is essentially a European residency permit and the chance to live and work in any EU country of your choosing.
Rental Yield 5.7%
Effective Rental Income Tax 19%
During the past few years, the German economy has excelled in comparison to most other European countries, drawing in foreign investors and resulting in a booming buyer’s market. Since 2013, real estate in Germany has been almost as sought after as prime London property. The country’s economy has always been very strong. Germany is now regarded as one of the best countries to invest in, with major cities Berlin, Hamburg, Frankfurt and Munich making the top-ten lists of best places to invest in real estate.
A relatively low cost of living is likely a factor in Germany’s popularity among expats — the perfect target market for real estate investors hoping to capitalize on the country’s low effective rental income tax rate.
A solid economy and effervescent real estate market attract American investors. Many make buy-to-let investments in Germany, but you might also invest here in order to join the many Americans moving to European countries.
Rental Yield 3.99%
Effective Rental Income Tax 2.71%
I’ve been sold on the Paris and French Riviera real estate market for decades and have owned in these places for about 15 years. Prices go up and down, as they do everywhere, but, for my money, a piece of Parisian real estate is still one of the surest imaginable sources of wealth long-term.
Though its strength is waning as we move forward into 2018, the U.S. dollar is still creating Euro bargains for American buyers. Another good reason to be looking right now at both Spain and France.
Another of the most appealing features of the French property market is that this is another country where foreigners are eligible for in-country financing. In fact, interest rates for French mortgages for foreigners are at historic lows of less than 2% interest…with loan-to-values as high as 85%!
Rental Yield 2.79%
Effective Rental Income Tax 10%
Portugal’s 3,300 hours of sunshine per year and all-round beauty has led the country to be an attractive place to invest in property over the years. The country is home to a vast number of expats and many of them choose to buy property there. And as Portugal’s economic conditions continue to improve and the demand for property has consistently carried on growing, the EU state’s housing prices have increased over time. The best news for foreign buyers who are seeking to buy property in Portugal is that the laws are pretty lax. Unlike in Malta, there are no property ownership restrictions for buying real estate in Portugal and costs tend to be quite low.
Here, too, there was a crisis that brought down housing prices, but it has ended. Portugal also has its own emigration program called “Residence permit through the purchase of real estate” and it is even more affordable this way. In the same way as Spain, Portugal has seen increasing property price growth and it is expected to rise again.
Rental Yield 5.45%
Effective Rental Income Tax 26.44%
A common language and historic connections helps Americans feel familiar with the United Kingdom. A stable economy and real estate market, especially in London, make it attractive for buyers seeking property as an investment.
Raised in the ranking due to information noise (presidential elections and Brexit). Loud political events fuel interest in the country, but they do not always lead to an increase in the number of deals. Demand remains limited – potential buyers are mostly interested in the “elite,” and there cannot be many such deals.
Rental Yield 2.7%
Effective Rental Income Tax 9%
Fixed in the top ten. The Czech economy is stable, construction is developing, prices, especially for new buildings in Prague, are growing rapidly, and local banks issue mortgages at record low rates. Most buyers are still interested in apartments in the capital worth € 100-200 thousand. In 2016, a new trend has emerged – the growth in demand for commercial premises (the portion of those interested in “business” real estate reached 18%). In this regard, the Czech Republic has begun to compete with Germany.
Rental Yield 3.14%
Effective Rental Income Tax 3.14%
After almost five years of stagnation, Bulgaria’s housing prices are now rising rapidly, thanks to falling interest rates and a strong economy. Wins due to lower prices (on the “secondary housing” fall continues) and the new law, under which the owner of an apartment or house of any value (!) can get a residence permit and live all year round. Demand could be even higher if the purchasing power of the main investors continues rising.
Rental Yield 5.12%
Effective Rental Income Tax 10%
One of the last countries in southern Europe where prices were still falling in 2016. Every year the decline slows down, the first signs of stabilization are already noticeable, such as the growth in the number of transactions and the pace of construction. Some buyers are attracted to the island by its programs of investment citizenship and residence permits.
Rental Yield 5.12%
Effective Rental Income Tax 0%
Not only is Italy a Mediterranean paradise in terms of the weather, natural scenery, food, and friendliness, it’s also home to some of the cheapest property prices in Europe. Un vaste choix d’anciennes villes-top colline, les villes médiévales et fermes de caractère sont maintenant plus un affordable: prix de l’immobilier sont encore atone que le pays a été lent à sortir de la récession mondiale.
Cependant, cela commence à changer, et les prix montre des signes de reprise dans les villes en particulier. Milan et Venise sont définitivement à la hausse.
Rental Yield 3.92
Effective Rental Income Tax 23%
Malta, the tiny island nation in the heart of the Mediterranean is one of Europe’s hidden gems. While its size might be miniscule in comparison to other countries in the EU, Malta’s economy continues to boom year after year making it a fantastic investment opportunity for property buyers. As a predominantly English-speaking country with a thriving economy and bustling tourism, Malta is the perfect place to start your European portfolio. While the property prices are relatively affordable, a Maltese property in the right location can be an immediate cash cow if rented to tourists on a nightly or weekly basis. For the year, the growth in real estate sales to foreign citizens in Malta soared by 348% .
On choosing to buy property in Malta, you can benefit from one of the programs available provided that you manage to meet the criteria. The programs that are currently available include a ‘First Time Buyers’ and a ‘Second Time Buyers’ which gives buyers the opportunity to benefit from an exemption on stamp duty up to certain amounts.
In Malta, all residential complexes are sold during the construction phase. Buying a property in Malta also provides citizenship.
Rental Yield 4.35%
Effective Rental Income Tax 23.33%