Among all investment options, buying real estate abroad is considered one of the relatively reliable and potentially profitable choices. This is related both to the practical side of the deal, as the investor acquires a real asset, and to the economic aspect. With the right choice of location, the property can generate a steady passive income and, if necessary, can be sold, helping to preserve the invested capital.

In addition, some countries offer extra benefits for investing in their real estate markets. These may include simplified residence permit programs or the opportunity to qualify for citizenship. It is worth keeping in mind that for one investor, this can be a significant advantage, while for another, it may be just an additional bonus that they are unlikely to use. Therefore, when choosing a country for investing in real estate abroad, it is important to carefully analyze the specifics of the market and compare them with your own criteria.

Popular Real Estate Markets

Interest from investors from different countries can be tracked by the number of completed transactions. For example, in 2025, foreigners concluded more than 193,000 real estate transactions in Dubai, over 97,000 in Spain, and more than 21,000 in Turkey. Despite the well-developed tourism sectors in these countries, it would be incorrect to reduce their investment appeal to this factor alone, as each market has its own conditions for foreign buyers, property taxes, ownership costs, rental demand, and opportunities for future resale.

Conditions for Foreign Buyers

When assessing potential investment returns, it is important to first find out under what conditions foreigners can purchase property in the chosen country. In some countries, there are restrictions based on the type or location of the property. For example, in Dubai, foreigners can purchase property with full ownership rights, but only in areas designated as freehold zones. In Turkey, foreign nationals have the right to purchase residential property, but restrictions in certain areas should be taken into account when choosing an object. In some of them, foreigners cannot obtain a residence permit, so such property may not be suitable for an investor who intends to use the purchase as a basis for obtaining legal residency. Spain has significantly fewer restrictions on foreign property buyers, but before completing a transaction, it is still worth checking the requirements for registration and the legal status of the specific property.

Property Taxes

It is important to consider not only one-time costs when purchasing a property, but also property ownership taxes and taxation of rental income. For example, property owners in Spain pay the annual municipal IBI tax, while Turkey has an annual property tax. The UAE does not impose a federal property tax, although owners may be charged service fees, depending on the property and its location.

Rental Potential

When comparing markets, it is important to consider the average rental rate, seasonality, occupancy, and the costs of property maintenance and management. In resort areas, short-term rentals often offer higher profitability, while long-term rentals may be a more stable option in major metropolitan areas. If rental income is part of the investment strategy, it is also worth considering property maintenance and tenant management in advance. If the owner cannot handle these tasks personally, third-party services will be required, and their costs should be included in the projected expenses.

Exit Strategy and Resale Liquidity

When investing in real estate abroad, buyers often focus on the purchase terms and potential rental income, overlooking the possibility of selling the property in the future. This is not only a question of liquidity, but also of possible legal restrictions, so this factor should also be assessed in advance.

Before committing capital, it is worth understanding how easily properties sell in the target market, whether foreign owners face any restrictions on resale, and what transaction costs apply when exiting the investment. Markets with high transaction volume and transparent legal frameworks generally offer better liquidity than those with limited foreign participation or unclear ownership rules.

Final Thoughts

Comparing real estate markets across countries requires looking beyond headline transaction numbers and tourism appeal. Ownership conditions, tax obligations, rental dynamics, and exit options all shape the real return on an international property investment. Investors who assess each of these factors against their own goals, whether that means steady income, capital preservation, or residency benefits, are better positioned to make decisions that hold up over time.