Investing in overseas property is one of the best ways to diversify your portfolio and earn a steady income. The market is booming, with many countries experiencing high rental yields because of fast-growing property costs. If you want to buy a property abroad, however, it’s crucial to do your research first.
Many factors determine whether a property will appreciate in value or lose money, but one of the biggest is its location. This article will help you make an informed decision about which countries are best for buying property overseas, and why.
Here are the ten best countries to invest in offshore real estate.
1. Indonesia
Indonesia is a country with the third-largest population in Asia after China and India and a lot of potential to grow in the real estate sector. The climate is tropical with two seasons — dry and rainy.
Indonesia is a popular tourist destination for international travelers because it has many beautiful beaches and islands like Bali Island or Lombok Island. It has a lot of natural resources and is also one of the countries with high economic growth rates in Asia.
The average cost of property per square meter: $830-1,630
The average cost of rent per month: $170-700
Approximate rental yield: ~5%
2. The UAE
The UAE has excellent conditions for foreign investors, and the property market is growing. The climate in this part of the world is warm for the majority of the year with very little rainfall throughout most months.
The country is situated in the Middle East. Its extensive infrastructure includes roads, airports, and ports supporting trade between Europe and Asia and providing easy access throughout both regions without having to travel far.
The UAE offers safe living conditions, making it ideal for those looking for a relaxing place to live out their retirement years or spend a vacation.
The average cost of property per square meter: $1,880-2,500
The average cost of rent per month: $960-2,025
Approximate rental yield: ~11%
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3. Panama
Panama is a popular destination for foreign investors who want to buy property in America. The country has a hot and humid tropical climate. Panama’s real estate market is quite stable because of investors from Venezuela, Columbia, and Argentina. The country also has great economic relationships with China.
Panama features some of the lowest property tax rates in Latin America. Primary residences pay 0.5% to 0.7%, with those valued at up to $120,000 being exempt from tax. Secondary residences and commercial property valued at $30,000 or less are tax-exempt. Otherwise, the rate is 0.6% to 1%.
The average cost of property per square meter: $1,200-1,990
The average cost of rent per month: $460-1460
Approximate rental yield: ~8%
4. Brazil
Brazil is the biggest country in South America with over 214 million people. The climate varies from tropical along the coast to subtropical further inland. The country also has beautiful beaches and mountains that are popular among people who want to live near nature.
Due to certain changes in the economic life of this country that took place in 2014-2016, the real estate market is still subject to fluctuations. However, Brazil’s property market is attractive, because it’s still relatively low-priced compared to other countries on this list. Its city, Rio de Janeiro, attracts millions of tourists every year.
The average cost of property per square meter: $1,115-1,680
The average cost of rent per month: $195-575
Approximate rental yield: ~4%
5. Thailand
If you’re looking for a place where the property market is still growing and has potential for real estate investors, Thailand is your best bet. There is a tropical climate, which is influenced by seasonal winds. The country has been experiencing an increase in tourism, with Bangkok being the most visited city for four years straight.
Under Thai law, foreigners are not permitted to own land in their name. Because of these restrictions, the most common form of land ownership for foreign nationals is through a Thai limited liability company. Another option is to enter into long-term lease agreements with landowners.
The average cost of property per square meter: $1,850-3,290
The average cost of rent per month: $215-1,080
Approximate rental yield: ~3%
6. France
France is one of the most popular destinations for buying property in Europe. With a strong economy, a high standard of living, and an excellent climate, it attracts many tourists every year.
Foreigners are eligible for in-country financing, which allows them to get mortgages with favorable conditions or rent out their properties for a profit. While the cost of property in France is high, it’s one of the most reliable investments.
The average cost of property per square meter: $4,640-6,100
The average cost of rent per month: $620-1,540
Approximate rental yield: ~3%
7. Dominican Republic
The Dominican Republic is a tropical paradise with beautiful beaches, warm weather, and incredible scenery. It’s also a great place for buying a property because of its high level of tourism and political stability.
The country has an attractive tax incentive system for foreign investors, allowing 100% repatriation of capital investments, good conditions for foreign investors, and low prices on real estate compared to other countries in the region.
The average cost of property per square meter: $990-1,430
The average cost of rent per month: $270-900
Approximate rental yield: ~6-8%
8. Portugal
Portugal is another European country where a non-resident can get a mortgage. Being a popular tourist destination, it has been attracting an increasing number of foreign investors in recent years.
Portugal’s population is 10 million people, and the number of real estate transactions increased in 2022 to 129 374 units. To maximize profitability, it may be advantageous to invest in popular and developing regions like Algarve and Lisbon.
The average cost of property per square meter: $2,120-3,060
The average cost of rent per month: $620-1,360
Approximate rental yield: ~6%
9. Cyprus
Cyprus is a popular destination for investors, thanks to its favorable climate and high-volume tourism. The island’s Golden Visa program gives foreign nationals who buy property there an automatic right to reside in the country. It has become an increasingly popular destination for those who want to purchase real estate overseas and enjoy the benefits of owning a home in an exotic location.
However, there are also disadvantages like restrictions on letting out your property if it’s not your primary residence. Additionally, non-EU citizens can only buy a property up to 4,014 square meters.
The average cost of property per square meter: $1,610-2,310
The average cost of rent per month: $720-1,780
Approximate rental yield: ~9-10%
10. The Philippines
The Philippines has a massive housing backlog, with a number of housing units reaching 6.5 million. The increase in middle-class buyers has also led to a higher supply of houses in this bracket, making it easier for expats to find something suitable for their needs.
The country has low property taxes (1-2%) compared to other countries on this list. The Philippines’ attractive climate and beaches also boast thriving tourism activities.
The average cost of property for a square meter: $1,250-2,390
The average cost of rent per month: $190-760
Approximate rental yield: ~3%
Conclusion
While there are many factors to consider when purchasing a home abroad, the investment budget is the most crucial one. However, buying real estate is an investment in the future that is unlikely to ever lose its relevance.
You may be looking for a holiday home or an investment opportunity. Whatever your reason, there are many countries where it’s possible to buy a property to live the best time of your life.
