- Buying a rental property is a good way to earn passive income and build wealth.
- Many real estate investors prefer to keep their range locally, but there are more chances out there and can also earn money as a landlord if buy rental property abroad.
- The most visited countries worldwide are in our top 10 to buy rental property.
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Buying a rental property is a wise way to earn passive income.
As a landlord, your property gets paid by your rentals, rather than paying a mortgage. The tenants cover all costs, so you’ll profit after covering insurance, taxes, and maintenance costs.
Some countries have a very high tourism demand and if real estate investors prefer to keep their portfolio locally, there are some wiser that want to take their business international.
If you have doubts how to get tenants, there are tons of websites making millionaire many landlords as: Airbnb, booking, etc.
Intoposts have made a list of the 10 best countries to invest buying property for rental and make high profits.
You won’t believe which are best countries!
- We calculated according to an average monthly rent for a 120 square meters home.
- The rental income tax rate are according to a monthly rental income of $1,500.
- The average rental yield is the amount that a landlord can expect as return on an investment before taxes, maintenance fees, and other costs (expressed as a percentage).
Each metric was assigned a score, and the three scores were then combined for each country to form an overall score, which determined the final ranking. The higher the score, the higher the potential income for property owners.
Remember that before you decide to buy property in a foreign country, it’s important to understand the laws and tax codes that go along with it. Or better yet, consult a professional.
# 10. Turkey
Tourism (Foreign Visitor Arrivals): 8th worldwide 37.6 M in 2017 (24.1% increase)
Rental yield: 3.62%
Effective rental income tax: 21.94%
Monthly rent: $1,128
# 9. Spain
Tourism (Foreign Visitor Arrivals): 2nd worldwide 81.8 M in 2017 (8.6% increase)
Rental yield: 4.7%
Effective rental income tax: 19%
Monthly rent: $2,531
# 8. Greece
Tourism (Foreign Visitor Arrivals): 8th within Europe 24.8 M in 2016 (5.2% increase)
Rental yield: 4.17%
Effective rental income tax: 7.5%
Monthly rent: $1,460
# 7. Hungary
Tourism (Foreign Visitor Arrivals): 5.3 M in 2016
Rental yield: 5.24%
Effective rental income tax: 13.5%
Monthly rent: $1,621
# 6. Croatia
Tourism (Foreign Visitor Arrivals): 5.3 M in 2016
Rental yield: 5.43%
Effective rental income tax: 8.4%
Monthly rent: $1,320
# 5. Germany
Tourism (Foreign Visitor Arrivals): 9th worldwide 37.5 M in 2017 (5.2% increase)
Rental yield: 3.99%
Effective rental income tax: 2.71%
Monthly rent: $1,769
# 4. France
Tourism (Foreign Visitor Arrivals): 1st worldwide 86.9 M in 2017 (5.1% increase)
Rental yield: 2.79%
Effective rental income tax: 10%
Monthly rent: $4,379
# 3. Thailand
Tourism (Foreign Visitor Arrivals): 10th worldwide 35.4 M in 2017 (8.6% increase)
Rental yield: 5.13%
Effective rental income tax: 2.73%
Monthly rent: $2,029
# 2. United Arab Emirates
Tourism (Foreign Visitor Arrivals): 19.1 M in 2016 (3.1% increase)
Rental yield: 5.19%
Effective rental income tax: 5%
Monthly rent: $3,070
# 1. Philippines
Tourism (Foreign Visitor Arrivals): 642 K in 2018 (12% increase)
Rental yield: 6.13%
Effective rental income tax: 4.06%
Monthly rent: $2,422
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