In a time where financial stability and economic growth are paramount, owning real estate is an emerging safety net for individuals seeking long-term investments and security.
Countries around the world offer attractive but diverse investment opportunities. Even though this is great, it makes it challenging to choose the right country to invest in property in.
Whether you’re a seasoned foreign investor or an entrepreneur who’s just starting out in the foreign real estate market, our guide simplifies the decision-making process.
We look at pros and cons as well as which countries offer real estate investment opportunities:
8 Factors to Consider: Choosing a Country to Invest in Real Estate In
When evaluating a country’s real estate market or considering an overseas property investment, there are some key indicators that you should look at to assess the overall viability and potential for real estate investment.
These indicators provide valuable insights into real estate market stability, growth prospects, and real estate investing risk factors:
1. Economic stability and growth
Economic stability and prosperity usually contribute to a higher demand for real estate, which encourages a wider spectrum of people to think about house ownership and buying commercial properties abroad, from businesspeople and young professionals to expats and retirees.
Factors that directly and indirectly affect the real estate market and overall demand in a nation’s real estate sector, include GDP growth, unemployment rates, and inflation.
2. Supply and demand dynamics
Analyzing the current supply of properties available for sale or rent and the demand from purchasers or renters is crucial to determining the future direction of the real estate market.
This shows whether your investment will grow in value as well as whether there’s potential for high rental income.
An undersupply may cause property and rental prices to rise while an excess can result in lower property values and less rental revenue.
3. Population growth
A growing population often drives demand for real estate, both for residential and commercial properties.
Considering the population growth rate and urbanization within the country can indicate a potential for high rental demand and an increase of individuals looking to buy property.
4. Real estate market trends and price history
Most counties have resources and databases where you can study historical price trends to identify patterns in property values over time. This can offer insights into potential price appreciation or depreciation and enables foreign buyers to predict the right market at the right time accurately.
By analyzing how property valuations have evolved in the past, investors can better predict future trends and make informed decisions. This historical perspective serves as a compass, helping them navigate the complexities of real estate investment, especially when considering international opportunities.
5. Interest rates
For foreigners seeking in-country financing for buying property, the prevailing interest rates influence borrowing costs for investors and homebuyers.
Low interest rates are generally a clear indication of a strong economy and can stimulate strong demand for real estate investment.
In contrast, high rates may discourage prospective investors from making real estate investments, as the increased borrowing costs can diminish the attractiveness of entering the market to acquire real estate properties.
6. Rental yield
To pinpoint the best place to buy a rental property, consider the potential rental income relative to the property’s value.
High rental yields on rental property are generally more attractive to foreign investors, as they signify a greater return on investment and a potentially faster path to recouping initial capital.
Assessing rental yields can help you pinpoint real estate properties that align with your financial objectives and provide a clearer perspective on the expected cash flow and the income-generating potential of real estate investments.
7. Political stability
Political stability can contribute to a conducive environment for real estate investment. Political instability or uncertainty can deter both domestic and foreign investors from entering the property market.
Furthermore, political turbulence acts as a catalyst, prompting numerous residents and citizens to depart the country in search of greater stability overseas.
This has a dual effect on real estate markets, decreasing the available pool of potential investors and tenants for both commercial properties and rental apartments.
8. Tourism industry
An expanding tourism industry is a reliable signal of a potentially strong property market. Many properties in a popular tourist destination see year-round occupancy, driving demand.
While investing in commercial real estate can entail a high cost and demand, and cash flow amplifies the value of foreign investment in real estate.
Moreover, residential property situated in an attractive location or a capital city with rich history presents an excellent opportunity for the short-term market, regardless of whether the destination has a small or large population.
Countries that Offer Incentives for Real Estate Investment
Real estate transactions and high demand in the property market can have a huge impact on the economy of a country.
An increasing number of countries have recognized the strategic importance of attracting foreign capital to their property markets and thus offer incentives to entice investors.
These incentives can range from tax breaks and favorable regulatory frameworks to residency or even real estate citizenship programs.
Such incentives are designed not only to boost economic activity but to improve international relationships and elevate the local real estate sector.
Malta
Malta is one of the best countries to invest in real estate in Europe for several reasons. Its unique blend of historical allure, modern amenities, and ideal location in Mediterranean Europe provide the perfect combination of elements for those seeking a new life abroad.
Its prime location and relatively strong economy has driven demand for the past few years, seeing a five to ten percent growth year-on-year, according to the Central Bank of Malta.
The Malta Residency by Investment Program allows foreign nationals to obtain a residence permit if they purchase a property of at least €375,000 or lease a property for a minimum annual rent of €14,000.
Key benefits:
- Consistent high demand in the housing market
- Gain permanent residence from purchasing or leasing a property
- An excellent destination for a vacation home with 315 days of sunshine per year
Brazil
Brazil is a big country with a diverse geography, from tropical coastal regions to relatively mild mountainous landscapes, that offers a range of opportunities to invest in property.
A growing middle-class and youthful demographic population has been driving demand for housing and commercial spaces.
Additionally, ongoing urbanization and infrastructure development projects contribute to the potential for real estate value appreciation and a stable and strong economy in the future.
The Brazil Permanent Residency Investor Visa (VIPER) starts at BRL 700,000 ($141,000) – a cheap investment for those planning to move permanently to Brazil.
Key benefits:
- A relatively low cost to obtain permanent residence through real estate investment
- An increasingly popular destination for tourism with many cities and locations primed for rapid growth and development
- A resurging currency valuation, boosting property values besides real estate market activity
Spain
Spain’s dynamic real estate market and lifestyle advantages make it an attractive option for astute real estate investors.
The stability of its property market, coupled with relatively affordable prices compared to other Western European countries, provides a promising environment for long-term value appreciation.
Whether seeking to generate cash flow from rental income, vacation in a holiday home, or strategically diversify an investment portfolio, the combination of Spain’s enticing lifestyle, potential for financial gains, and investor-friendly policies solidifies its standing as what many consider the best place to invest in real estate in the world.
The Spain Golden Visa program further enhances the country’s allure, allowing investors to secure a renewable long-term residence permit via a real estate investment starting at €500,000.
Key benefits:
- Gain residency in one of Europe’s most sought-after destinations through real estate
- Considerably cheaper real estate prices than other countries in Western Europe
- Home to some of Europe’s most visited major cities, with consistently high demand for accommodation and tourism
Have a look at our Spain Golden Visa Ultimate Guide by experts
Countries That Offer Citizenship to Foreign Real Estate Investors
Antigua and Barbuda
With stunning white-sand beaches, crystal-clear waters, and a warm tropical climate, Antigua and Barbuda offers an idyllic setting that attracts both tourists and potential property buyers.
One reason many label it as the best country to invest in real estate among Caribbean nations is the stability of Antigua and Barbuda real estate compared to other countries in the same region.
An added advantage for investors is tax benefits, such as low taxes on rental income, no personal tax on worldwide earnings, no capital gains tax, and comparatively low import taxes compared to other Caribbean countries and countries in Central and South America.
With the Antigua and Barbuda Citizenship by Investment program, individuals can secure citizenship and a second passport through a minimum investment of $300,000 in pre-approved Caribbean real estate on the dual islands.
Key benefits:
- An average annual rental yield of four percent
- Gain an Antigua and Barbuda passport through real estate investment, providing visa-free access to 150 countries, including Europe’s Schengen zone
- Enjoy tax benefits, including zero worldwide employment tax and corporate tax perks for up to 20 years
Turkey
The Turkish government has introduced several pro-investment policies, making the overall prospect of investing in Turkey enticing. Besides economic initiatives, the country offers unique landscapes, historical sites in several major cities, and food culture, reinforcing its appeal one of the most desirable destinations for tourism and foreign investors alike.
The country has many prime locations for buying real estate, whether you’re interested in the residential condo market, commercial properties, or coastal villas. Additionally, the country provides one of the cheapest properties per square meter of countries with citizenship programs.
Investors who purchase real estate valued at $400,000 or more can apply for Turkish citizenship by investment.
Key benefits:
- A low annual property tax of 0.2 percent compared to popular US states like New York and Illinois with over one percent property tax
- Potential Value Added Tax exemption for foreign investors on real estate purchases
- One of the cheapest real estate investments among citizenship by investment countries
Find more information about Turkish real estate investing and citizenship program in this article: Turkey Investment Citizenship 2025: The Ultimate Guide by Experts.
Grenada
Like Antigua and Barbuda, Grenada offers breathtaking beaches, crystal-clear waters, and a tropical climate, alluring many vacationers and prospective investors in real estate.
Grenada real estate prices are considerably lower in comparison to other similar countries and an overall affordable cost of living. Furthermore, its geographical location outside the hurricane belt shields it from hurricane damage, something other Caribbean countries are vulnerable to.
Key benefits:
- Own Caribbean property and enjoy a tropical lifestyle without the expected risk of hurricane and storm damage
- No requirement to reside in the country to maintain citizenship or the property investment
- Eligibility for the US E-2 Visa through buying property and obtaining citizenship
To explore further details about Grenada citizenship by investment and real estate investing, check out our article: Grenada Citizenship by Investment – The Ultimate Guide by Experts.
Best European Country for Real Estate Investment
Portugal
Many attribute Portugal’s consideration as one of the best countries to invest in real estate in 2025 to its favorable regulatory environment, which makes it relatively easy for foreigners to invest and own property.
The country’s stable political climate and growing economy contribute to a positive investment outlook.
The Portuguese economy has gone from strength to strength, with a steady increase in Portugal real estate prices over the last decade. Since the introduction of the Portugal Golden Visa just over a decade ago, the country has been among the best countries for investors in real estate.
However, a recent change excluded real estate investments to qualify for the Golden Visa program. Foreign buyers of Portugal real estate have several alternatives to gain residence in Portugal besides the alternative investment options offered in the Golden Visa program. These include the Portugal D7 Visa and the Portugal Digital Nomad Visa.
Key benefits:
- Stable rental yields on rental properties in major cities and coastal regions
- One of the cheapest average house prices compared to other countries in Western Europe
For more insight on Portugal real estate investing, check out our article: Buying Property in Portugal: Making the Right Decision
Take a look at our guide on Buying Property in Portugal in 2025
Benefits of Purchasing Property Overseas
When investing in real estate in a foreign country, it’s important to weigh up the advantages and disadvantages to help inform your choice. First, let’s take a look at the pros:
1. Asset Protection and Safety Net
That old adage of not putting all your eggs in one basket is especially true when it comes to property investment. By investing in a property in a foreign country, you are diversifying your investments and reducing the risk of losing money.
If economic downturn happens in one country, you can use your other investment to mitigate the impact. It can also safeguard your wealth against currency devaluation and capital controls.
For you and your family it can serve as a safety net should you need to move at a moment’s notice.
2. Return on Investment
If you invest in real estate in a developing country that’s experiencing lots of urbanisation and economic growth, you can see a rise in the value of your property. In turn, this increases your investment value should you decide to sell in the future.
3. Extra Revenue Stream
If you invest in a rental property in a tourist-heavy area or in a city where there is a high demand for rental properties, you can secure a regular monthly rental income.
It provides a steady cashflow that you can use for other investments and diversifying your portfolio. It can also yield a return on investment in a short amount of time.
4. Lifestyle Enhancement
Owning property in another country can be used as a second home for vacations, seasonal living or future retirement.
Risks of Real Estate Investment Abroad
Financing
Getting a mortgage overseas isn’t always as simple as purchasing real estate in your home country. Higher loan rates, more stringent lending conditions, or even a complete lack of funding choices could be faced by foreign investors.
Some financing options you could think is collaboration with foreign lenders or taking out a home equity loan on your current home.
Currency Exchange
Changes in exchange rates might have a big effect on how much your investment will cost. While an increase could make mortgage repayments more costly, a decline could mean that rental income and the property’s value are worth less in your home currency.
Think about using hedging techniques to offset losses or keeping a multi-currency bank account to safeguard yourself. Some investors also make their purchasing decision based on which nation has a history of a stable currency or economy and is predicted to continue having one.
Laws and Regulations
Property laws differ from country to country so it’s important to note what’s legal and what’s not.
For example, some nations have put limitations on foreign investors with respect to the types of property they can purchase or own or require documents you might not need in your home country.
It’s best to consult with a local lawyer who specializes in real estate law to avoid legal issues.
Taxation
One of the most challenging aspects of foreign real estate investing is taxation. You might have to pay taxes in both your home country and the country where the property is located or taxes on rental income from non-residents might be withheld.
Speak with a tax expert who is knowledgeable with foreign tax treaties as they can assist you in finding ways to lower your tax load and prepare you for any liabilities.
Political and Economic Environment
The political and economic environment of a nation has a big impact on how stable real estate investments are. Market collapses, expropriation, or the inability to sell your property when you need to can be the result of unstable governments, economic downturns, and abrupt policy changes.
Before making an investment, learn about the country’s current and past political and economic climate. Lower risks can be found in nations with a robust economy, stable government, and expanding real estate market. Political risk insurance might also offer extra defense.
Property Management
It’s challenging to oversee a home from thousands of miles away. Without being physically present, you will have to handle tenant concerns, collect rent, and make sure routine maintenance is done.
You can save time and trouble by working with a trustworthy property management company. Even though it costs more, this guarantees that your investment is protected.
Take into account the time commitment needed to stay on top of matters and the logistics of travel if you intend to handle the property yourself.
Culture and Language
Barriers to communication and cultural differences might impede transactions while investing abroad. Misunderstandings in contracts, discussions, or even simple property maintenance can lead to costly mistakes.
Collaborate with attorneys, property managers, and bilingual agents who are familiar with local business practices to get around these issues. Understanding cultural conventions can also help you improve your interactions with local officials, business partners, and tenants.
Foreign Ownership Restrictions
Some nations, such as China, have placed a ban on foreign ownership of real estate to protect locals. Others have imposed restrictions in an effort to reduce housing inaccessibility for locals.
For example, due to a current housing crisis, Spain’s Prime Minister has proposed a 100% tax on property purchases by non-EU residents but it is yet to passed into law.
Before making an investment, keep up with changes to the legislation and ownership regulations. Policies are subject to sudden changes that may affect your future ability to purchase, rent, or sell real estate.
How We Can Help You
Global Citizen Solutions’ team of migration experts possesses in-depth expertise in international real estate markets. We assist foreign investors in making lucrative real estate investments effortlessly, removing all hassle from the equation.
As we guide foreign real estate investors, we also help foreign nationals qualify for investment programs, enabling them to unlock the advantages of owning foreign real estate while simultaneously securing residency or citizenship for themselves and their families.
If you’re interested in buying foreign real estate and becoming a global citizen, get in touch with us today for a free consultation.
Frequently Asked Questions about Investing in Real Estate Abroad
Are there restrictions on foreign real estate ownership?
What are the benefits of diversifying real estate investments internationally for Americans?
Some benefits of foreign real estate investment include:
- Earn passive income through rentals and appreciation of property value
- Diversification help protect your assets if a country’s economy tanks
- Potentially offset foreign income tax depending on where you buy property
- Secure a second home for retirement or a safety net
- Get a second passport and citizenship in a new country
What are the risks associated with investing in real estate abroad?
An unstable government, economic downturns, and sudden policy changes can lead to expropriation, market crashes and difficulty to sell your property when you need to.
In addition, if you’re not living in the country it’s difficult to maintain the property when there’s repairs needed or damage occurs. If you’re renting, unruly tenants can become an issue.
What are the tax implications for foreign real estate investors?
Tax laws vary significantly and it can impact your investment’s profitability.
Some tax obligations for foreign investors can include transfer duty, income tax on rental income and capital gains tax upon sale.
How do U.S. tax laws apply to foreign real estate investments?
U.S. capital gains tax applies when a foreign property is sold for a profit.
What are the financing options available for real estate investments?
Some financing options can include:
- Arranging an overseas mortgage with your local bank or an overseas lender
- Release equity from your home if you already own property
- Pay in cash
How does Brexit affect real estate investment opportunities in Europe?
British investors face the following challenges when investing in property in Europe:
- Reduced market access: There is no longer free movement across EU countries for Brits.
- Visa requirements: British citizens now require visas to stay in EU countries for extended periods, impacting the ability to use and enjoy property.
- Currency fluctuations: Instability of the British Pound versus the Euro.
- Increased bureaucracy. Property buying process has become more complicated.
What are the residency or citizenship benefits associated with real estate investment in Europe?
When buying property in Europe, the following citizenship or residency benefits can be enjoyed:
- Visa-free travel within the Schengen area, which includes 29 countries.
- Access to top-quality healthcare and education systems within Europe.
- Pathway to citizenship is offered through some programs.
- Opportunities for business and employment in the EU and access to more markets.
