Purchasing an overseas investment can be intimidating, foreign investment follows several factors that support the investor’s decision to take the right step to choose the country that the main applicant wants to invest in a real estate investment while ensuring a good return on investment.
Based on a survey conducted by GoBankingRates, the top 25 countries to own property were identified as reviews the important indicators such as monthly rent, rental tax rates, gross rental yields, the amount, expressed as a percentage that a landlord can expect as a return on his investment before taxes investment maintenance fees and other costs.
But before making any decisions regarding the investment of any of these countries, regardless of the high tax rate in some countries compared to others, we must first consider the advantages of investing in these countries, which will not be granted by any other country as the following:
● Cyprus: Real estate investment in Cyprus gives you permanent residence or citizenship depending on the type of investment.
● Greece: Real Estate Investment Program – Golden Visa, which gives you permanent residency
● Spain: Real Estate Investment Program in Spain-Golden Visa, gives you accommodation.
● Malta: one of the countries where its real estate market is growing through the real estate investment program – Malta Golden Visa in it, since it grants nationality to investors or residence by type of investment
● Turkey: One of the most important countries whose economy is constantly growing and strong, and investment in which gives Turkish Citizenship.
Below you will find the list of countries where you can find the best places to own investment property, with attention to the advantages of buying it:
1- Philippines: Despite the Philippines low cost of living, the country rental yield is a respectable 6.13, and its effective rental income tax rate, making this the best country overall for buying investment property.
Rental Yield: 6.13 Percent
Rental Income Tax: 4.06 Percent
2- United Arab Emirates: It is a preferred destination for many investors to buy their properties because of its economic and tourist status. The monthly rental rate is high compared to the actual tax rate of the rent. Also, the residents of the country make the additional investment.
Rental Yield: 5.19 Percent
Rental Income Tax: 5 Percent
3- Costa Rica: is the second highest country in the annual rental yield rate of 7.48%! While the actual rental income tax rate is 72% lower than the rest of the countries. Although the rental rate is low, it is one of the countries that are suitable for real estate investment.
Rental Yield: 7.48 Percent
Rental Income Tax: 5.16 Percent
4- Panama: Of the countries with fixed rents. They have a high rental yield against a low rate of rent tax and are also countries with strong property rights laws for foreign investors.
Rental Yield: 5.75 Percent
Rental Income Tax: 2.8 Percent
5- Indonesia: it has a very high tax rate! However, this is not a barrier to rising monthly rents, especially as Indonesia has become an important tourist destination, so investors can categorize it as one of the most important options for real estate investment.
Rental Yield: 8.61 Percent
Rental Income Tax: 20 Percent
6- Barbados: The highest rental rates among other countries, and has a very low tax rate! However, in order to invest in it, you must obtain a property that is approved by the government in order to buy it.
Rental Yield: 5.48 Percent
Rental Income Tax: 7.5 Percent
7- Thailand: A country with a promising opportunity to invest in and achieve a high return on investment, due to the very low real rent tax rate.
Rental Yield: 5.13 Percent
Rental Income Tax: 2.73 Percent
8- Ireland: Although rated as one of the best countries in the ownership of investment properties and the high monthly rental rates, the actual rent tax rate is very high, which requires the investor to be cautious when deciding to buy the property.
Rental Yield: 6.64 Percent
Rental Income Tax: 10.05 Percent
9- France: The highest rental rate among all countries in this study, although the actual rental income tax rate is lower than in other notable European countries, depending on the increase of its monthly rent.
Rental Yield: 2.79 Percent
Rental Income Tax: 10 Percent
10- Cyprus: Cyprus rental yields have remained steady in recent years, even while other countries experienced declines. Cyprus is characterized by affordable and moderate prices for all The rate of return on investment per year: 5.12% against the low rate of monthly income tax, which may reach (zero) when achieving an income of $ 23,339.22 for the first time. In addition, Cyprus grants the investor the option of obtaining permanent residence and citizenship by investing in Cyprus Golden visa program.
Rental Yield: 5.12 Percent
Rental Income Tax: 0 Percent
11- Germany: The cost of living is relatively low in Germany, the most important factor that raised the popularity among expats, especially since the actual income tax rate is very low and thus one of the most important real estate markets for investment.
Rental Yield: 3.99 Percent
Rental Income Tax: 2.71 Percent
12- Croatia: Although Croatia is one of the countries with the lowest tax rate, the monthly rental fee drives investors to purchase many properties, especially since the annual return on investment is higher than the actual rental income tax compared with other countries in this study.
Rental Yield: 5.43%
Rental Income Tax: 8.4%
13- Bulgaria: Although rent in Bulgaria averages is on the low side compared with other countries surveyed. The actual rental income tax is very high, but the annual return on investment makes it an excellent investment option within Europe.
Rental Yield: 6.24%
Rental Income Tax: 10%
Rent: $ 997
14- Hungary: may be considered high tax countries! However, the strength of its economic industry and the monthly income makes it one of the countries that must be considered to own and invest in real estate.
Rental Yield: 5.24%
Rental income tax: 13.5%
Monthly rent: $ 1621
15- Greece: Greece is witnessing remarkable progress in real estate investments because it is a state that grants multiple privileges to investors, which is to grant permanent residence and the possibility of applying for a nationality, in addition to the monthly rent is very high despite the low annual return on investment, Actual rental income is low compared to other countries in this survey.
Annual return on investment: 4.17%
Actual rental income tax: 7.5%
Monthly rent: $ 1,460.
16- Spain: with its rich history, a strong economy and it is one of the most important tourist destinations in the world, knowing these factors is enough to let the country an attractive place for investors to buy a property in Spain. Despite the fact that it has one of the highest rents in this survey. However, Spain appeals to expats as purchasing powers, especially when we know that after purchasing a property the investors can obtain a residency and have the possibility of applying for Spanish citizenship depending on some laws and conditions.
Annual return on investment: 4.7%
Actual rental income tax: 19%
Monthly rent: $ 2,531
17- Canada: Tax may be high in Canada, but finding and investing in property can restore the value of the paid purchase. Monthly rental income is very high in Canada and amounts to $ 3,740!
Annual return on investment: 3.98%
Actual rental income tax: 25%
Monthly rent: $ 3,740
18- Morocco: Morocco attracts investors to buy and invest in real estate because of its purchasing power and low living costs which are a good option for Arab investors who want to invest within the boundaries of the Arab countries, also its important geographical position.
Annual return on investment: 10.7%
Actual rental income tax: 25%
Monthly rent: $ 854
19- South Africa: Despite the rise in actual rental income tax, South Africa is an important option for investors and retirees seeking stability in low-cost countries.
Annual return on investment: 3.88%
Actual rental income tax: 12.8%
Monthly rent: $ 1,636
20- Argentina: Countries with a very high rent income tax, but the high monthly rent and the annual investment return are very good.
Annual return on investment: 4.48%
Actual rental income tax: 14.7%
Monthly rent: $ 1,490
21- Colombia: The actual rental income tax may be very high, but the annual return on investment will compensate for this rise, especially as its purchasing power is high, in addition to the low prices of goods and services in Colombia, making it one of the good investment options.
Annual return on investment: 6.51%
Actual rental income tax: 24.75%
Monthly rent: $ 1,548
22- Malta: As mentioned at the beginning of the survey, investment in Malta gives the investor multiple privileges such as permanent residence and nationality, so it is a very good option for those who want to invest and enjoy the privileges of residence in a European country, especially since the monthly rent is very high and it continues to rise as it has caught the Investors’ attention.
Annual return on investment: 4.35%
Actual rental income tax: 23.33%
Monthly rent: $ 2,229
23- Portugal: Many people may avoid investing in Portugal because of the high tax on real rental income, but it is an excellent choice for those wishing to invest and obtain the advantages of real estate investment in this country, which includes permanent residence in the state once the purchase of the property and enjoy the privileges of citizens of the state to apply for citizenship.
Annual return on investment: 5.45%
Actual rental income tax: 26.44%
Monthly rent: $ 1,939
24- Latvia: The annual return on investment may be low compared to the actual rental income tax rate, but investment in Latvia compensates for this increase through the high monthly rent
Annual return on investment: 3.8%
Actual rental income tax: 17.25%
Monthly rent: $ 1,074
25- Turkey: Although it came in the last position due to the high rate of actual rental income tax, the property value is very low for the rest of the countries, in addition to the economy is growing in view of the living and strategic features in which the addition of the possibility The investor obtains citizenship easily.
Annual return on investment: 3.62%
Actual rental income tax: 21.94%
Monthly rent: $1,128