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Investing / Real Estate

25 Best Countries to Own

Investment Property
8 MIN READ

January 24, 2019 | By Daria Uhlig

©Shutterstock.com

• A recent GOBankingRates study identified

the best countries to own investment
property.

• The study found that best countries for

real estate investors span the globe —
from the Philippines (No. 1) to Turkey (No.
25).

• If you’re thinking about investing in real

estate, experts recommend you use these
tips.

Purchasing an overseas investment can be

daunting. In addition to factors like cost and
condition of the property, commercial real
estate investors who want to own property in
another country must also navigate
financial systems and regulations that might
work differently than those in the United
States. Working with top real estate
companies gives investors a good start, but
in the end, successfully investing in rental
property comes down to arming yourself
with the information you need to make a
sound decision.

GOBankingRates reviewed important

indicators like monthly rent, rental tax rates
and gross rental yields — the amount,
expressed as a percentage, that a landlord
can expect as a return on his investment
before taxes, maintenance fees and other
costs — to find the best places to own
investment property.

Click through to see the 25 best countries to

own property.

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25. Turkey
Rental Yield: 3.62 percent

Effective Rental Income Tax: 21.94 percent

Rent: $1,128

Turkey lands near the bottom of the list due

to its low rental yield and an effective rental
income tax that’s higher than 80 percent of
the countries surveyed. In fact, Turkey is one
of the worst countries for taxes.

24. Latvia
Rental Yield: 3.8 percent

Effective Rental Income Tax: 17.25 percent

Rent: $1,074

With a rental yield of just 3.8 percent and an

effective rental income tax of 17.25 percent,
Latvia likely isn’t a first choice for investors
who don’t already have ties there.

23. Portugal
Rental Yield: 5.45 percent

Effective Rental Income Tax: 26.44 percent

Rent: $1,939

Robust rent and a decent rental yield aren’t

enough to push Portugal farther up on this
list; the country has the highest effective
rental income tax rate of any country in this
study at 26.44 percent. In fact, Portugal is
one of the countries where people pay more
in taxes than Americans.

22. Malta
Rental Yield: 4.35 percent

Effective Rental Income Tax: 23.33 percent

Rent: $2,229

The rents are high in Malta, and rental yields

are in the top third of the countries surveyed.
But effective rental income taxes are steep,
and real estate prices are rising, so there
might be better options for your investment.

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21. Colombia
Rental Yield: 6.51 percent

Effective Rental Income Tax: 24.75 percent

Rent: $1,548

A relatively high rental yield of 6.51 percent

partially offsets Colombia’s 24.75 percent
effective rental income tax rate — the third
highest in the study. It helps that low prices
on groceries and other goods and services
remain low compared with purchasing
power.

20. Argentina
Rental Yield: 4.48 percent

Effective Rental Income Tax: 14.7 percent

Rent: $1,490

As one of the least-tax-friendly countries,

Argentina ranks near the bottom of the list of
best countries to own investment property.
Its effective rental income tax is a hefty 14.7
percent, and rental yield is just 4.48 percent.

19. South Africa

Rental Yield: 3.88 percent

Effective Rental Income Tax: 12.8 percent

Rent: $1,636

Despite having a less-than-stellar rental

yield and higher effective rental income tax,
South Africa has a cost of living that makes
it a good retirement option for expats — but
only a so-so choice for real estate investors.

18. Morocco
Rental Yield: 5.52 percent

Effective Rental Income Tax: 10.7 percent

Rent: $854

Foreigners can’t buy land for agriculture in

Morocco, but they can buy investment
property. Effective rental income tax falls
about in the middle of the pack, and rent is
the lowest of the countries surveyed, but
solid purchasing power and low cost of living
make Morocco worth considering.

Investing for Everyone

17. Canada
Rental Yield: 3.98 percent

Effective Rental Income Tax: 25 percent

Rent: $3,740

Canada has the fifth-lowest rental yield and

second-highest effective rental income tax,
but if you can find cheap real estate that
doesn’t need much work, $3,740 in monthly
rent can help you recoup your investment.

16. Spain
Rental Yield: 4.7 percent

Effective Rental Income Tax: 19 percent

Rent: $2,531

At first glance, high taxes and relatively low

rental yields might cause an investor to
avoid Spain. But that could be a mistake,
considering the country’s appeal to expats
and purchasing power that holds up to one
of the highest rents in the survey.

15. Greece
Rental Yield: 4.17 percent

Effective Rental Income Tax: 7.5 percent

Rent: $1,460

Although its rental yield is the study’s

seventh lowest, Greece’s effective rental
income tax rate falls in the lower half of
countries surveyed, so you’ll keep more of
your rental income.

14. Hungary
Rental Yield: 5.24 percent

Effective Rental Income Tax: 13.5 percent

Rent: $1,621

A 5.24 rental yield and strong industry mean

there’s plenty of opportunity for real estate
investors in Hungary. However, it also has
one of the 10 highest rental income tax rates
of all the countries in this study.

Investing for Everyone

13. Bulgaria
Rental Yield: 6.24 percent

Effective Rental Income Tax: 10 percent

Rent: $997

Although rent in Bulgaria averages on the

low side compared with other countries
surveyed, and the effective rental income
tax rate is the fifteenth highest, a healthy
6.24 percent rental yield makes it a good
choice for investors.

12. Croatia
Rental Yield: 5.43 percent

Effective Rental Income Tax: 8.4 percent

Rent: $1,320

Croatia might be one of the least-tax-

friendly countries in the world, and its low
average rent of $1,320 could leave investors
wanting more. But the rental yield is stronger
than in many other countries in this study.

11. Germany
Rental Yield: 3.99 percent

Effective Rental Income Tax: 2.71 percent

Rent: $1,769

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.

10. Cyprus
Rental Yield: 5.12 percent

Effective Rental Income Tax: 0 percent

Rent: $966

Cyprus rental yields have remained steady

in recent years, even while other countries
experienced declines. Property sales prices
are modest. Rents are low, but so are
effective rental income taxes; you won’t pay
any tax on your first $23,339.22 of income.

Investing for Everyone

9. France
Rental Yield: 2.79 percent

Effective Rental Income Tax: 10 percent

Rent: $4,379

High rents — the highest in this study — keep

France in the top 10 best places to own
investment property, despite a low rental
yield. The rental income tax is lower than in
other notable European countries, like Spain
and Ireland.

8. Ireland
Rental Yield: 6.64 percent

Effective Rental Income Tax: 10.05 percent

Rent: $2,077

High rents and rental yields keep Ireland in

the top third of the best countries to own
investment property, but climbing real
estate prices warrant caution.

Keep Reading: What Are the World’s Best

Tax Havens?

7. Thailand
Rental Yield: 5.13 percent

Effective Rental Income Tax: 2.73 percent

Rent: $2,029

Although Thailand’s average yield is 5.13

percent, a medium-sized, centrally located
property in Bangkok, for example, can
generate yields of up to 8 percent. Combine
that with a low effective rental tax rate and
relatively high rent, and Thailand looks like a
promising opportunity for investors.

6. Barbados
Rental Yield: 5.48 percent

Effective Rental Income Tax: 7.5 percent

Rent: $2,501

The survey’s fifth-highest rent and modest

income tax offset Barbados’ lackluster rental
yields. But you’ll need permission from the
country’s Central Bank to purchase
investment property.

Investing for Everyone

5. Indonesia
Rental Yield: 8.61 percent

Effective Rental Income Tax: 20 percent

Rent: $2,486

Indonesia’s effective rental income tax is one

of the survey’s highest, but high rents and
the survey’s highest rental yield should
prompt investors to take a look.

4. Panama
Rental Yield: 5.75 percent

Effective Rental Income Tax: 2.08 percent

Rent: $2,075

Panama’s high rental yield, low taxes and

solid rents keep it high on the list of best
countries to invest in real estate. Investors
also benefit from Panama’s retiree-incentive
program and robust property ownership
rights for foreigners.

3. Costa Rica
Rental Yield: 7.48 percent

Effective Rental Income Tax: 5.16 percent

Rent: $1,450

Although Costa Rica’s rents are

comparatively low, it has the second-
highest rental yield in the survey, and its
effective rental income tax is lower than 72
percent of the other countries reviewed.

2. United Arab Emirates

Rental Yield: 5.19 percent

Effective Rental Income Tax: 5 percent

Rent: $3,070

The UAE has a lot going for it. In addition to

low effective rental income tax rates and
high rents, the country is one of the most
tax-friendly countries in the world, which
leaves residents with more income to devote
to rent.

1. Philippines
Rental Yield: 6.13 percent

Effective Rental Income Tax: 4.06 percent

Rent: $2,422

Despite the Philippines’ low cost of living, the

country’s rental yield is a respectable 6.13
percent, and its effective rental income tax
rate is one of the lowest of the countries
surveyed, making this the best country
overall for buying investment property.

Click through to read about some common

real estate myths you should know.

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Methodology: GOBankingRates determined

the best countries to own investment
property based on the following factors: (1)
rental yield; (2) average monthly rent; and
(3) rental income tax rate. Each factor was
assigned a score. Those three scores were
then combined to form an overall score to
determine which country offers the highest
potential income for property owners. Data
was sourced from GlobalPropertyGuide.com,
unless otherwise noted.

Investing for Everyone

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