We have prepared for you an indicative rating from countries with the best conditions for owning investment property. The list is based on indicators of rental value, rental yield and rental income tax. In addition, third-party factors are considered here (geopolitical, cultural, social, etc.)
25th place – Turkey
Rental yield: 3.62%
Tax rate: 21.94%
Rent price: $ 1,128
Turkey was in the last position of our rating because it has low rental returns, and the tax rate in the republic is higher than in 80% of the studied countries.
24th place – Latvia
Rental yield: 3.8%
Tax rate: 17.25%
Rent price: $ 1,074
With a rental yield of 3.8% and a tax rate of 17.25%, Latvia will obviously not be the best option for your first investment, unless, of course, you have a connection in the country.
23rd place – Portugal
Rental yield: 5.45%
Tax rate: 26.44%
Rent price: $ 1,939
Portugal is good for two indicators – rent and profitability, but the very high tax rate does not allow it to climb into the top twenty of this list. Portugal has the highest rental taxes from the countries we present to you. In fact, the Portuguese are forced to pay even more taxes than the Americans. Real estate investment in this country is not the best option presented.
22 place – Malta
Rental yield: 4.35%
Tax rate: 23.33%
Rent price: $ 2,229
Malta has high rental prices, and profitability is better than 65% of the countries represented in the study. But taxes are very high, and property prices in the region are constantly growing, so without extensive experience in this area it is better to choose more convenient and reliable options.
21 place – Colombia
Rental yield: 6.51%
Tax rate: 24.75%
Rent price: $ 1,548
The relatively high yield of 6.51% is a good compensation for the high tax rate (the third indicator among the countries mentioned in this article). Due to this, products and other goods or services become more affordable compared to purchasing power..
20th place – Argentina
Rental yield: 4.48%
Tax rate: 14.7%
Rent price: $ 1,490
The twenty most pleasant states for real estate investments are opened by Argentina. It is distinguished by one of the friendliest tax systems for this type of activity – only 14.7%. Together with a 4.48% yield, this makes the South American Republic a pretty good choice..
19th place – South Africa
Rental yield: 3.88%
Tax rate: 12.8%
Rent price: $ 1,636
Despite a rather modest rate of return and high tax, South Africa has a large enough rent to become a good option for investing in real estate. Due to the low cost of living, it is much better suited for those who want to change their place of residence for retirement..
18th place – Morocco
Rental yield: 5.52%
Tax rate: 10.7%
Rent price: $ 854
Under the laws of the Kingdom of Morocco, foreigners are forbidden to buy land for agricultural activities, but investment property can be purchased. Here, profitability is quite good and the effective tax rate is low, but the average rental cost indicator is one of the lowest among the countries in our rating. In general, Morocco is a promising option for those who can wait..
17th place – Canada
Rental yield: 3.98%
Tax rate: 25%
Rent price: $ 3,740
Canada is one of the five countries with the lowest rental income and is in second place in terms of income tax, but here you can find really cheap real estate that does not require a lot of improvement work. In addition, $ 3,740 monthly income still allows you to put the country in the middle of the ranking, and not at the end.
16th place – Spain
Rental yield: 4.7%
Tax rate: nineteen%
Rent price: $ 2,531
At first glance, investors should be repelled by the high tax rate and the relatively low profits of rental property. However, Spain is a good option for ownership, given the high purchasing power and openness of the country to immigrants. And in this kingdom, one of the highest rental rates.
15th place – Greece
Rental yield: 4.17%
Tax rate: 7.5%
Rent price: $ 1,460
Despite the fact that Greece is in seventh place in terms of rental returns, it offers an effective tax rate lower than most countries on this list, so it can definitely be considered as an option for increasing your investment.
14th place – Hungary
Rental yield: 5.24%
Tax rate: 13.5%
Rent price: $ 1,621
Hungary has a developed real estate industry and an attractive rate of return, therefore, both beginners and experienced investors should pay attention to its potential. In addition, Hungary is among the ten countries with the most loyal tax policies..
13th place – Bulgaria
Rental yield: 6.24%
Tax rate: 10%
Rent price: $ 997
Despite the fact that the rental price in Bulgaria barely falls short of thousands of dollars per month, in comparison with other countries, it has very good rental returns and is quite loyal to taxing landlords with taxes. The investment potential of Bulgarian real estate is also increased by 6.24% profitability and developed tourism infrastructure.
12th place – Croatia
Rental yield: 5.43%
Tax rate: 8.4%
Rent price: $ 1,320
Croatia is one of the countries with the most pleasant taxation rules in the world, so the figure of $ 1,320 of rental income is quite impressive. This republic can be safely classified as a strong middle peasant, suitable for “fresh” and seasoned investors..
11th place – Germany
Rental yield: 3.99%
Tax rate: 2.71%
Rent price: $ 1,769
Germany is just a tax haven for an investor. In addition, there is a relatively high purchasing power and low cost of living. This is the reason for the country’s popularity among immigrants and real estate investors. With only 2.71% taxes, a return of even 3.99% makes it a very good investment option..
10th place – Cyprus
Rental yield: 5.12%
Tax rate: 0%
Rent price: $ 966
Cyprus opens up the top ten countries with the most favorable conditions. Remember what we wrote about taxes in Germany? Forget it. They are not here at all until you earn your first $ 23,399. Due to this, even a low rent does not make the country less attractive – after all, 5.12% of the profitability remains with you.
9th place – France
Rental yield: 2.79%
Tax rate: 10%
Rent price: $ 4,379
France has the highest rents among the countries mentioned in this ranking. Thanks to this, it is in ninth place, despite a miserable 2.79% return. Moreover, the effective tax rate here is lower than in European countries such as Ireland and Spain.
8th place – Ireland
Rental yield: 6.64%
Tax rate: 10.05%
Rent price: $ 2,077
High rents and good returns make Ireland a good choice for real estate investment, even if you do not have much experience in this field. Still here is a fairly loyal tax system. However, do not forget about caution in view of the increase in property prices..
7th place – Thailand
Rental yield: 5.13%
Tax rate: 2.73%
Rent price: $ 2,029
Despite the average rate of return (5.13%), Thailand remains one of the best countries if you are looking for investment opportunities in real estate. 5.13% is the average. In “fish” places like the center of Bangkok, it will reach 8%. We add to this a very low tax rate and a good rental price, and we get a good option with a developed tourist infrastructure.
6th place – Barbados
Rental yield: 5.48%
Tax rate: 7.5%
Rent price: $ 2,501
Barbados is in the top six countries on this list with the best rents, and also offers investors pleasant tax conditions. This compensates for the modest rate of return, and gives the region good potential. The main thing is not to forget to get permission to purchase investment property from the Central Bank of the country.
5th place – Indonesia
Rental yield: 8.61%
Tax rate: twenty%
Rent price: $ 2,486
Indonesia has one of the highest rental returns, but also high income taxes. However, rents are relatively high, and this country is in the top 5 best options for real estate investment..
4th place – Panama
Rental yield: 5.75%
Tax rate: 2.08%
Rent price: $ 2,075
Panama combine a good rental price, a decent percentage of profitability, as well as a very favorable income tax rate. Therefore, it is one of the best options for investment property. It protects the property rights of foreigners well and has an incentive program for them..
3rd place – Costa Rica
Rental yield: 7.48%
Tax rate: 5.16%
Rent price: $ 1,450
Despite the fact that Costa Rica has relatively low rental prices, it has a fairly high rate of return. The tax rate is also very low – and is one of the best among other countries attractive for real estate investment..
2nd place – United Arab Emirates
Rental yield: 5.19%
Tax rate: 5%
Rent price: $ 3,070
In the UAE there are a lot of opportunities for any real estate business. This is due not only to the low tax rate and high rents, but also to a good rate of return. And, of course, in the Emirates very good purchasing power.
1st place – Philippines
Rental yield: 6.13%
Tax rate: 4.06%
Rent price: $ 2,422
With a low cost of living in the Philippines and an impressive return of 6.13%, the country is a very, very attractive option, even for investors with no experience. It has a very friendly tax system and a good rental rate. The investment potential is enhanced by the region’s economic and tourist attractiveness..
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What are the key factors that determine these countries as the top choices for real estate investment?