How to buy real estate abroad? Where is the best place to buy foreign property?

May 4, 2025

Buying property abroad is a dream for many people, who are looking not only for investment but also for the perfect vacation spot or permanent residence. Choosing the right location, understanding the country's real estate laws, and assessing the profitability of the investment are key factors to consider before making a decision. In this article, we'll explain how to successfully buy property abroad and where to invest to achieve the best return on investment.

1. Why is it worth investing in real estate abroad?

Purchasing real estate abroad is not only a way to diversify your investment portfolio, but also a way to secure your financial future. Here are a few reasons why you should consider it:

Tax benefits – In some countries, you can benefit from more favorable tax rates or tax reliefs.
Rental income – In many tourist locations, it is possible to rent out properties, which can generate a steady income.
Real estate market stability – Real estate in some countries is increasing in value, which can provide a profit upon sale.
The possibility of a second home – Choosing a place for vacation or year-round residence can involve the convenience of owning your own property.

2. Where is it most profitable to buy real estate?

Not every location abroad is a good investment choice. Some destinations have been popular with Poles for years. Here are a few countries that are popular with investors:

Spain

Spain is one of the most popular destinations for real estate investment. It boasts relatively low property prices compared to other Western European countries. Popular regions include the Costa Brava, Costa del Sol, and the Canary Islands. The growth of tourism and its attractiveness to affluent individuals make renting in this country a profitable option.

Advantages: Relatively low prices, tourist attractiveness, good conditions for short-term rentals.
Disadvantages: Too rapid development of some regions may lead to price increases.

Portugal

Portugal has become a popular investment destination, especially in the Algarve region, known for its beautiful beaches and sunny climate. Property prices in Portugal remain affordable, and its stable economy and high-quality infrastructure make it a worthwhile investment destination.

Advantages: Stable real estate market, beautiful weather, no restrictions for foreigners when purchasing real estate.
Cons: Higher prices in popular tourist areas.

Italy

Italy is another country attracting investors. Although prices in cities like Milan and Rome are high, affordable properties can be found in smaller towns, especially in the south and Sicily. Furthermore, many regions offer opportunities to obtain property permits in exchange for investment in local markets.

Advantages: Beautiful locations, including picturesque towns in Tuscany and Sicily, low prices in less popular regions.
Disadvantages: High local taxes and expensive property maintenance in large cities.

Croatia

Croatia has been attracting investors for several years now, particularly in the Dalmatian region. Due to its beautiful coastline and developing tourist infrastructure, Adriatic real estate is gaining in value. Property prices in Croatia remain relatively low, and the rental market is promising, especially during the summer season.

Advantages: Low real estate prices compared to other Western European countries, growing tourism market.
Disadvantages: Seasonality of property rentals – high profits during peak season, but lower profits outside of it.

United Arab Emirates (UAE)

The UAE boasts one of the most developed real estate markets in the Middle East. Dubai and Abu Dhabi offer not only luxury properties but also significant investment opportunities. The Emirates attract wealthy investors seeking to invest in a stable and developing country.

Advantages: No personal income tax, developed infrastructure, stable economy.
Disadvantages: High real estate prices, risk associated with regional politics.

Thailand

For investors seeking exotic locations, Thailand offers many attractive options. Phuket, Koh Samui, and Bangkok attract investors from around the world, and property prices remain competitive compared to other Asian countries. Thailand is a popular destination for short-term rental properties.

Advantages: Low real estate prices, large rental market, tourist attraction.
Disadvantages: Foreigners may face restrictions on having full ownership rights.

3. What are the basic steps when buying a property abroad?

Find a local expert – It is always worth using the services of a local real estate agent who knows the specifics of the market and the laws in a given country.
Understand the law and tax regulations – Each country has its own regulations regarding real estate purchases by foreigners. Be sure to familiarize yourself with the requirements for permits, taxes, and insurance.
Check the local real estate market – You should carefully analyze the property’s location, its investment potential, and the region’s development projections.
Set a budget – It is worth remembering that in addition to the price of the property itself, you must take into account additional costs related to the transaction, such as notary fees, taxes and real estate agency commissions.
Consider renting or selling – Consider whether the property is intended to be a rental investment or whether you plan to sell it after some time to realize a profit on your investment.

4. Summary

Buying property abroad is an attractive investment option that can generate profits in both the short and long term. Choosing the right country depends on individual preferences, budget, and investment goals. The key is to carefully plan the entire process, understand the local market, and utilize the assistance of professionals who will guide you through every step of the purchase process.

Investing in real estate abroad can bring tangible benefits if approached with the right knowledge and strategy.