In 2025, investing in overseas rental property remains one of the most reliable and profitable strategies for generating passive income. Many investors turn to foreign real estate to protect capital from inflation, diversify currencies, and secure long-term value growth. However, choosing the right country requires a careful assessment of prices, rental yields, tax policies, legal frameworks, and market trends. Below is an overview of the top countries offering favorable conditions for buying property to rent out.
Portugal – Stability and European Reliability
Portugal offers a well-balanced investment environment. Cities like Lisbon, Porto, and the Algarve remain in high demand among tenants and tourists alike.
Property prices: from €250,000 to €400,000
Rental yield: 5–7% per year
Taxes: 28% on rental income for non-residents
With transparent ownership laws, quick property registration, and a strong legal system, Portugal continues to attract investors seeking long-term security.
Turkey – High Yields and Low Entry Costs
Turkey stands out for its high rental returns and relatively low property prices. Key markets include Istanbul, Antalya, and Izmir.
Prices: from €60,000
Yield: up to 10%
Advantages: fast purchase process, potential for residency
While currency fluctuations and political risks are concerns, smart property selection can offer substantial gains.
Spain – Developed Market with Long-Term Reliability
Spain remains a classic choice for investors seeking stability. Cities like Barcelona, Valencia, and the coastal areas of Costa Blanca and Costa del Sol offer a variety of rental options.
Prices: from €120,000
Yield: 3.5–6%
Note: rental licenses are required in most tourist areas for short-term rentals
Spain’s regulated market ensures investor confidence, especially for those focused on long-term appreciation.
UAE (Dubai) – Tax-Free Income and Dollar-Denominated Rents
Dubai remains a major hub for rental investments, thanks to zero income tax and a high demand from expatriates and digital nomads.
Prices: from €150,000
Yield: 6–9%
Top districts: JVC, Downtown, Dubai Marina
While service charges can be high, the absence of income tax and strong infrastructure offer exceptional rental potential.
Thailand – Resort-Driven Demand and a Flexible Market
Thailand offers attractive opportunities, especially in cities like Phuket and Bangkok. Apartments in condominium projects are available to foreign buyers under freehold ownership.
Prices: from €80,000
Yield: 6–8%
Limitation: land ownership is restricted for foreigners
With strong tourism and a growing expat community, the Thai rental market provides consistent cash flow.
Georgia – Low Taxes and a Rapidly Growing Market
Georgia is emerging as a top choice for budget-conscious investors. Tbilisi and Batumi lead the market in terms of demand and development.
Prices: from €40,000
Yield: 8–12%
Tax: flat 5% on rental income
The country’s ease of property registration and pro-investment laws make it especially attractive to foreigners.
Mexico – Dollar-Based Rents and Year-Round Demand
Resort cities like Cancun, Tulum, and Playa del Carmen are hotbeds for rental income, primarily from American tourists.
Prices: from €100,000
Yield: up to 8%
Ownership structure: fideicomiso (trust-based ownership for foreigners)
Stable rental demand and dollar-denominated leases make Mexico ideal for investors focused on the North American market.
Montenegro – Affordable European Real Estate
Montenegro uses the euro and has growing appeal due to its picturesque coastline and EU accession prospects.
Prices: from €80,000
Yield: 5–7%
Popular areas: Budva, Kotor, Tivat
With relatively low prices and a simplified residency program, Montenegro offers promising long-term potential.
Costa Rica – Eco-Tourism and Rental Stability
Costa Rica is known for its natural beauty, strong environmental policies, and friendly investment climate. Coastal properties are in high demand.
Prices: from €120,000
Yield: 7–9%
Taxes: around 15%, with possible deductions
The combination of legal transparency and consistent tourist interest makes Costa Rica a strong contender in Latin America.
Conclusion
In 2025, the best countries to invest in rental property fall into several key categories:
- Stable and regulated markets: Portugal, Spain, UAE
- High-yield, low-cost options: Turkey, Georgia, Thailand
- Dollar-driven or niche markets: Mexico, Costa Rica, Montenegro
When selecting a country, investors should look beyond yield and consider tax policies, legal protections, property management costs, and overall market dynamics. A professional strategy, combined with proper due diligence, will help ensure long-term profitability and asset security in the international rental property market.
