Relocation experts 1st Move International Removals have analysed rental yields and property taxes, to identify the countries likely to offer the most significant returns for property investors.
Lithuania ranks as the best country to invest in property, with an investment score of 7.10 out of 10.
Lithuania offers a compelling investment opportunity for property buyers, with a high gross rental yield of around 6.44% per annum, the third-highest rent prices (172.1/700), and buying costs capped at 3.45%.
Estonia is the second-best country for property investment, scoring 7.04 out of 10.
Estonia has the lowest buying costs among all the countries in our study, at just 1.30%. With a projected growth rate of 12.30% and an annual gross rental yield of 4.51%, Estonia offers attractive rental opportunities, ensuring investors a steady monthly income.
Romania ranks third, with an investment score of 6.82 out of 10.
Romania boasts the lowest average rental income tax rate at 10% and a strong gross rental yield of 6.46% per year, second only to the UK. Although selling costs are high at 6%, the country presents a more favourable opportunity for investors in the rental market.
Belgium tops the list as the worst country to invest in property, scoring just 2.90 out of 10.
Spain is the most popular country for people looking to buy property, with over 279,000 Google searches.
Top 10 countries to invest in property:
| Rental yields | Property taxes | ||||||||
| Rank | Country | Housing rent price index /700 | Gross rental yield (% per annum) | Average rental income tax rate | Income tax on rent | Buying costs | Selling costs | Corporate tax | Real estate investment score /10 |
| 1 | Lithuania | 172.1 | 6.44% | 15.00% | 15.00% | 3.45% | 3.00% | 15.00% | 7.10 |
| 2 | Estonia | 156.2 | 4.51% | 20.00% | 20.00% | 1.30% | 3.00% | 20.00% | 7.04 |
| 3 | Romania | 141.3 | 6.46% | 10.00% | 10.00% | 3.20% | 6.00% | 16.00% | 6.82 |
| 4 | Ireland | 163.4 | 7.85% | 40.00% | 40.00% | 3.70% | 1.50% | 25.00% | 6.55 |
| 5 | Czechia | 136.5 | 3.58% | 16.24% | 23.00% | 6.70% | 0.00% | 21.00% | 6.48 |
| 6 | Hungary | 180.9 | 5.75% | 15.00% | 15.00% | 9.00% | 5.00% | 9.00% | 6.40 |
| 7 | Poland | 163.9 | 5.75% | 11.17% | 12.50% | 7.00% | 3.00% | 19.00% | 6.38 |
| 8 | Bulgaria | 133.0 | 4.65% | 10.00% | 10.00% | 10.50% | 3.00% | 10.00% | 6.27 |
| 9 | Croatia | 122.8 | 4.78% | 12.00% | 12.00% | 7.50% | 3.00% | 18.00% | 6.20 |
| 10 | Slovenia | 168.4 | 4.45% | 25.00% | 25.00% | 4.40% | 2.00% | 22.00% | 6.06 |
House prices rising sustainably (at least until the Budget…)