What are the Benefits of International Real Estate Investing?
International property investment opens up a world of financial, lifestyle, and strategic advantages. Here are some of the top benefits of international real estate investing:
01/ Portfolio Diversification
Spreading your assets across borders helps reduce exposure to a single market’s risks. Geographic diversification also allows you to tap into growing economies and protect against domestic downturns.
02/ Rental Income and Cash Flow
Many international markets offer strong rental income opportunities, especially in tourist hot-spots or expat-friendly regions. This steady stream of passive income can enhance overall returns and financial stability.
03/ Capital Appreciation
Countries with high urban growth or infrastructure development often see rapid property value growth. Strategic international real estate investment can result in long-term capital appreciation, building generational wealth over time.
04/ Inflation Hedging
Real estate is a tangible asset that tends to appreciate in line with inflation. By investing in international property, you can preserve your purchasing power and protect against currency devaluation.
05/ Currency Diversification
Holding assets in foreign currencies can help mitigate risks associated with fluctuations in your home currency. This is especially important for investors from countries with volatile exchange rates.
06/ Tax Optimization
Many countries offer favorable tax treatment for foreign real estate investors, such as lower property taxes, exemptions on gains of capital, or tax deductions. Understanding local rules and Double Taxation Agreements (DTAs) can lead to efficient tax planning.
07/ Lifestyle and Retirement Options
Investing in international real estate provides the flexibility to relocate, retire, or spend part of the year abroad. It also gives you access to the healthcare, education, and quality of life benefits of your chosen destination.
08/ Residency or Citizenship by Investment
Some countries allow foreign investors to qualify for real estate citizenship or residency. Popular programs in Portugal, Spain, and some Caribbean nations offer the ability to access a second passport.
Factors to Consider When Buying Property Abroad
International property investment can be a rewarding path to passive income, long-term capital growth, and even global mobility. However, successful international real estate investing requires a strategic approach. Before purchasing real estate overseas, it’s essential to assess several financial, legal, and economic variables that influence profitability and risk.
Here are the most important factors to consider when evaluating a foreign real estate investment:
01/ Market Growth Rate
The market growth rate is defined as the percentage change in the size of a market over a specific period, typically annually. It indicates how quickly real estate values are increasing in a given location.
Countries or cities experiencing consistent growth often signal rising demand and better long-term capital appreciation. To determine this, one has to take a look at historical trends and projected data to determine whether a location aligns with your investment goals.
02/ Price per Square Meter
Understanding price per square meter as a real estate metric allows you to compare properties within and across countries. It also helps with budgeting and evaluating value for money.
If prices are high, it can potentially reflect strong demand and solid infrastructure. On the other hand, lower prices might present an opportunity to get into a growing market, but only if the financial fundamentals are sound.
03/ Potential Rental Yield
Getting rental income from a property abroad is one of the core perks of overseas real estate investments. To understand how much income a property could potentially generate relative to its purchase price, you should calculate gross and net rental yield:
- Gross rental yield is useful for high-level market comparisons.
- Net rental yield is essential for understanding actual cash flow and profitability.
04/ Economic Stability
Strong economic indicators, like rising GDP, low unemployment, and controlled inflation, often support healthy real estate investment markets. When an economy is demonstrated to be stable, it also signals lower risk and greater resilience in times of uncertainty.
05/ Country-Specific Legalities and Foreign Ownership Rights
Before buying, understand the country’s property laws, especially those governing whether foreigners can own property and if so, which property types they can own. Some nations restrict land ownership or require special permits.
A clear and transparent legal system protects your investment and ensures you can buy, sell, or lease without unnecessary hurdles.
06/ Location and Demand Drivers
Location is key. Prioritize properties near employment hubs, universities, or tourist attractions, depending on your strategy. These areas typically generate stronger rental demand and higher property values, leading to greater rents and resale opportunities.
07/ Infrastructure Development
Governments investing in infrastructure, like roads, airports, healthcare, and digital connectivity, can boost local real estate values. Look for properties in or near areas slated for major development, as these improvements often drive property value growth.
08/ Political Stability and Regulatory Risk
Political uncertainty can negatively impact property rights, taxes, and your ability to transfer funds. Evaluate a country’s political climate and regulatory consistency before committing to a purchase. Stable democracies with investor-friendly policies are generally safer bets.
09/ Currency Stability and Exchange Rate
Currency fluctuations affect your real returns, especially when repatriating profits or servicing foreign mortgages. A weakening local currency can erode gains, while a strengthening one can enhance them.
10/ Taxation and Accumulative Costs
Be aware of property taxes, rental income tax, capital gains tax, and inheritance or estate duties in the country where you’re buying. Some countries also apply withholding tax on profits sent abroad. Investigate double taxation agreements (DTAs) between your home country and the investment location to minimize tax liability.
Tax Implications of International Real Estate Investing
Research from our Global Intelligence Unit has shown that, “We are witnessing a global trend toward taxing not just income, but the accumulation and movement of wealth.” This trend demonstrates that tax, among many other things, can significantly impact how profitable an international property investment can be so it’s essential to understand your obligations both abroad and at home.
As a global mobility firm, we can assist you with the entire process of international real estate investing. Our tax experts and international lawyers are here to help you traverse a foreign legal system and strategically position yourself for all tax implications.
Property Taxes
Most countries levy annual taxes based on the assessed value of the home. Rates vary widely and may depend on the property’s use (residential vs. rental), location, or value brackets. These recurring costs should be factored into your net rental yield calculations.
Rental Income Tax
If you rent out a property overseas, you will typically be subject to rental income tax in that country. Some nations offer deductions for maintenance, depreciation, or mortgage interest.
Capital Gains Tax (CGT)
Selling international real estate at a profit means that CGT will likely apply. Some countries offer exemptions based on how long you’ve held the property or whether it was your primary country of residence. Understanding these rules ahead of time helps reduce unexpected tax liabilities.
Double Taxation Agreements (DTAs)
If your home country taxes foreign income, you may face dual taxation. However, many countries have double taxation agreements (DTAs) that allow you to offset or avoid being taxed twice. Always check if such an agreement exists between your home country and the country where the property is located.
Withholding Taxes and Repatriation
Certain countries impose withholding taxes on foreign investors when they send profits from rent or property sales back home. Ensure you’re familiar with local repatriation rules and banking regulations to transfer funds legally and efficiently.
Inheritance and Estate Taxes
Ownership of international property may be subject to local inheritance or estate duties. In some countries, foreign owners must draft a local will to ensure assets are passed on according to their wishes.
Tax Planning and Legal Structures
Choosing the right ownership structure, such as purchasing through an individual, company, or trust, can have major tax implications. Proper tax planning can help you minimize your tax obligations and ensure compliance with local and international tax laws.
5 Best Countries for International Real Estate Investment
These countries have strong real estate markets with growth potential and rent income opportunities. Some also offer Golden Visas and citizenship by investment, allowing investors to profit while securing residency or citizenship.
01/ Portugal
- Market growth: ~10% in 2025 (house prices nationally)
- Rental yield: ~4.9–5.5%
- Price/m²: Lisbon ~€5,300; Porto ~€4,200; national average ~€2,300–3,000
Portugal is an attractive option for international real estate investing due to its growing market, which is driven by tourism and strong rental demand. The Portugal Golden Visa program no longer includes real estate investment, and the property market still grows at around 10% annually.
Investors should be aware of tax implications like the IMT (Property Transfer Tax) of 0–8%, Municipal Property Tax (IMI) of 0.3–0.5%, and capital gains tax of 28% on property sales. There are restrictions, particularly in cities like Lisbon and Porto, where foreign buyers face limited property purchases, especially for short-term rentals.
02/ Greece
- Market growth rate: ~7–8% nominal; ~4.3% real (2024–2025)
- Rental yield: ~5.6–6.8%
- Price/m²: ~€1,180 average; higher in urban centers
Greece is a great option for international real estate investors, offering an appealing property market with a growth rate of around 7.5%. The Greece Golden Visa allows residency with a €250,000 real estate investment, making it one of the more accessible options in Europe.
Investors are drawn to the country’s beautiful landscapes, warm climate, and high rental demand, which is ideal for vacation homes or income-generating properties. The country has a Property Transfer Tax of 3%, a capital gains Tax of 15%, and annual property taxes (ENFIA). Restrictions may apply to properties in protected or coastal zones.
03/ Italy
- Market growth rate: ~6–8% in major cities (2024–2025)
- Rental yield: ~7.6%
- Price/m²: ~€2,300 average; Bologna €3,700; Florence €4,500
Italy’s real estate market attracts investors with its rich culture, strong tourism sector, and cities like Milan and Rome, where the average property growth rate is around 6-8%.
The country has unique lifestyle benefits, from scenic landscapes to historic architecture. While the Italy Golden Visa doesn’t include real estate investment, it provides residency through other investment routes, such as €500,000 in businesses.
When purchasing property in Italy, keep in mind that there are taxes like Property Transfer Tax (up to 9%), Annual IMU Property Tax, and capital gains Tax (up to 26%). There may be restrictions on buying properties in historical areas.
04/ Hungary
- Market growth rate: ~7.8% national; ~11.8% in Budapest (2025)
- Rental yield: ~5.1% average; 3.5–8% range (Budapest)
- Price/m²: ~€2,500 (Budapest average)
Hungary offers a compelling real estate market with affordable property prices, particularly in Budapest, and strong income potential, with an average growth rate of around 7.8%.
The country has reintroduced the Hungary Golden Visa, which allows foreign nationals to gain residency by investing €250,000 in a state-approved real estate investment fund.
The country also has taxes on property, including a 4% Property Transfer Tax, an Annual Property Tax that varies by municipality, and a capital gains Tax of up to 15%. Foreign buyers should also know that non-EU citizens are restricted from purchasing agricultural land.
05/ Turkey
- Market growth rate: ~38% nominal (2025)
- Rental yield: ~7.4%
- Price/m²: ~€1,000 (regional variance applies)
Turkey is a dynamic real estate market, with an average growth rate of around 38%, making it one of the fastest-growing markets in Europe. The country attracts foreign investors through Turkey’s citizenship by investment program, requiring a minimum investment of $400,000 in real estate to obtain citizenship.
Investors should be aware of the 4% property transfer tax and the annual property tax. Additionally, Turkey has specific rules for foreign buyers, such as restrictions on purchasing property in certain military zones. The strong growth potential and competitive pricing make it an appealing option for investing overseas.
How to Invest in International Real Estate in 9 Simple Steps
01/ Define Your Investment Goals
Decide whether you are seeking short-term cash flow, long-term growth, access to a different lifestyle, or global mobility. Be clear about whether you’re investing to get passive income, diversify your portfolio, or gain a pathway to a Golden Visa or citizenship by investment.
02/ Choose the Right Country
Assess key market factors like rental yields, property value growth, as well as political and currency stability. Look for countries with strong real estate investment structures and protections for foreign owners. Also consider visa incentives, tax treaties, and repatriation flexibility. You can even look into investing in countries with no capital gains tax or in so-called tax havens.
03/ Understand Local Property Laws
Different countries have varying rules for foreign buyers, including ownership limits, restricted zones, and required approvals. Familiarize yourself with property taxes, transfer taxes, and land registration processes to ensure you’re complying with legalities and regulations.
04/ Research the Market Thoroughly
Analyze local demand trends, price per square meter, historical appreciation rates, and the strength of the rental market. Urban centers, tourist hubs, and emerging regions often provide the best mix of income from rent and potential for capital appreciation.
05/ Secure Financing
Explore funding options, if needed. Keep in mind that many foreign banks require higher down payments and may assess your global credit history. Here are some options you can consider:
- Local bank mortgages: There are countries that offer mortgages to foreign buyers, provided they’re willing to provide a high down payment (often between 30 to 50%) and can offer proof of income.
- International mortgages: Some of the best banks in the world provide loans for property purchases abroad.
- Developer financing: Some developers offer direct financing with flexible terms.
- Home country bank loans: Buyers can refinance their home or take out a loan to fund an overseas property.
- Private lenders: Alternative financing with faster approval but higher interest rates.
- Golden Visa programs: Buying property in certain countries may lead to residency or citizenship.
06/ Hire a Professional Team
Engage local professionals, including a licensed real estate agent, property lawyer, tax advisor, and property manager. This team of advisors can help ensure the smooth navigation of legal documents, due diligence, and ongoing investment management. We can help you access an entire team so you do not need to worry about the administration of international property investment.
07/ Conduct Due Diligence
Verify property ownership, check for legal encumbrances, and confirm building permits and zoning. Review all contracts carefully and ensure transparency from the developer or seller. This step is essential to avoid fraud and scams in unfamiliar markets.
08/ Close the Deal
Make your offer, sign the purchase agreement, and finalize all required payments, including stamp duty, notary fees, and other transaction costs. Register the property legally in your name or investment structure such as individual, company, or trust.
09/ Manage the Property and Monitor Performance
Once the purchase is complete, set up property management. This is especially important if you don’t live locally. Track rental returns, expenses, and tax obligations to ensure your international property investment performs over time. Reassess your investment periodically to adjust your strategy and maximize returns.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
