A recent study by British relocation company 1st Move International analyzed the main factors to identify the most promising European countries for property investment in 2025. The report evaluated aspects such as property taxes, gross rental income and acquisition costs, highlighting Central Europe and Oriental as the most attractive regions for investors.
At the top of the list is Lithuania, which offers favorable conditions for those who want to invest in the real estate sector. According to the Global Property Guide, the capital Vilnius records an average gross rental yield of 5.65%. Since 2015, rental prices in the country have more than doubled, growing by 170%, according to the OECD. Tax on rental income remains moderate at 15% and there are no restrictions on foreigners purchasing property. In the second quarter of 2024, property prices rose by more than 10% compared to the same period the previous year, according to Eurostat.
Estonia ranks second among the most promising European countries. Non-residents can purchase properties without restrictions, and the annual gross income is around 4.5%, despite the tax being 20%. Property prices increased by 6.7% until June 2024. Romania, in third place, offers a gross rental yield of 6.46%, with a reduced tax of 10% and low acquisition costs.
Other countries highlighted include Hungary, Poland and Slovenia, all with significant increases in rental prices and moderate taxes. In contrast, Belgium, France and Greece emerge as the least recommended destinations, due to high transaction costs, high taxes and lower returns.
According to , although they are not the most profitable markets, Spain and Portugal continue to lead as the most sought after destinations globally for purchasing property. Between 2023 and 2024, Spain registered around 279 thousand searches related to property acquisition, becoming the most searched country in that period. This interest is driven by attractive tax benefits for non-residents, including a rental income tax rate of 19% for EU/EEA nationals and 24% for non-EU nationals.
Portugal appears in second place, with more than 270 thousand searches in the same time period. The country allows foreigners to purchase property under the same conditions as residents, which contributes to its growing popularity. However, this interest has worsened the shortage of affordable housing for the local population. According to the OECD, house prices in Portugal have increased by almost 70% since 2015, reflecting strong demand.
Also read:
