Investments in foreign real estate — where to buy and what you need to know

Investments in real estate abroad provide an opportunity to direct capital 💰 into a protected financial asset to generate passive income. Plus, with their help you can obtain the right to obtain a residence permit.

In this review, Rating Forex will figure out where it is better to buy real estate abroad. He will also tell you everything you need to know to invest your money as efficiently as possible.

📈 Do you want to make an investment?💲 to foreign real estate? From us contacts and consultation free 💪. We will explain everything clearly, help you invest your money wisely and competently ✔️.

Investments in foreign real estate

In 2022, the demand for investment in real estate abroad went up. It’s up 80%. At the same time, the focus of interest has shifted from European markets to the Middle East, Asia and other locations neighboring the Russian Federation. Top 3 reasons:

• 🌍 problems with obtaining visas and traveling to the eurozone;
• 🌍 difficulties with transferring money to the EU;
• 🌍 economic risks.

In 2023, the situation developed in the same direction. When considering where it is better to buy real estate in Europe, Russians increasingly chose Turkey. They even took 1st place among foreign buyers in this country.

📈 By the beginning of 2023, over 1,000 objects became the property of Russians. This is 30% of the entire Turkish market.

Residents of the Russian Federation became more active in Bali and Indonesia. In 2023, 1.5 times more people decided to buy foreign real estate than a year earlier.

Attention was often paid to Cyprus and Thailand. The number of transactions in these locations increased ⬆️ 1.5 times. Spanish realtors were contacted 40% less often.

Overall, in 2023, Russians spent 45% less ⬇️ than in 2022. All:

• 💸 due to the unstable ruble;
• 💸 difficulties with transactions;
• 💸 reducing overall demand.

Everyone who wanted and was in a hurry managed to invest capital in 2022. 2023 saw the remainder of the explosive demand.

The reasons for investing abroad are changing. 5 years ago, 42% of Russians bought housing in Europe to have additional income. Nowadays, 22% of Russian residents make purchases in order to earn money. The rest invest money in those properties where they plan to live themselves or use them as an additional home.

Investments in real estate abroad. Where is it really cheap?

ABOUTReal estate properties in mass demand are cheapest〽️ in neighboring countries and individual Eastern European countries. Let’s say the subject of interest is an apartment, the price per square meter starts from € 1000. Then a good idea is to look at housing:

• 🌐 in Georgia,
• 🌐 Moldova,
• 🌐 North Macedonia.

Bulgarian, Montenegrin, Latvian, Romanian sellers ask 1.5 times more.

For a meter of apartment in Poland and Spain you will have to pay €2600. Italy is even more expensive 💰. There, a meter starts from € 3,000. The highest price tag in the region was set by the Germans and the French. They ask for at least €5,000.

In some locations prices have gone up. In others, on the contrary, they fell. For example, Turkish housing in local currency has risen in price by 73%. The price tag for Dubai properties has increased by 20% on average.

📈 At the same time, the Swedes are selling 10–15% cheaper than in 2022. The French price tag decreased by 3.5%. German – 10%.

How to invest in foreign real estate? What to look for when choosing a country

When choosing a region and state in whose real estate market to invest money, you need to pay attention to:

• 💡 On the climate. Risk of natural disasters, frequency of heavy rainfall.
• 💡 For social opportunities. Do they provide an opportunity to obtain citizenship or at least a residence permit for investments?
• 💡 On the difficulty of renting. What do you need to do to legally earn money by renting out property to tenants?
• 💡 For transport and financial accessibility. How easy is it to get into the country and transfer funds there?
• 💡 To the level of expenses. You need to study local prices, taxes and costs that burden the investment object.
• 💡 On the state of the economy. What’s happening in the country? What are its growth prospects? Are there any conflicts or other risks?

Having studied all these factors, it is much easier to protect yourself from most of the surprises associated with owning square meters abroad.

How to invest in real estate abroad? Which objects to choose

The secret of smart investments -consultations with specialized specialists 🤫. There are many agencies whose specialization is real estate. They will provide detailed information on regions and cities that are of interest.

Even within one modest country, prices per square meter vary greatly. Therefore, it is so important to pay attention to additional factors:

• 📃 Convenient location of the building in terms of logistics, infrastructure, and transport accessibility.
• 📃 Condition of the structure. We need to find out how long ago it was built.
• 📃 Development plan for a quarter, district, city.

All these factors must be assessed based on the purpose of the purchase.

It is important to understand what exactly you need to get – a secluded corner for your own residence or an apartment near skyscrapers for rent. It makes a huge difference whether you plan to drive yourself or prefer public transport.

📈 We need an answer to the question “How to make money on real estate abroad?” Then the priority is inexpensive objects of mass demand. This makes it easier to find tenants. The investment will pay off faster.

Investments You can buy foreign real estate yourself or with the help of intermediaries. The first option is more accessible 👌. But it comes with a number of serious risks. Especially when it is not possible to evaluate the property on site before purchasing.

In most cases, it is safer and more profitable to use agents. This minimizes most risks. In addition, the intermediary can talk about the specifics of taxation, preparation of all documents, administrative fees and other nuances of foreign investments.

The best countries to buy real estate

New laws, fluctuations in demand, and economic factors constantly put pressure on the list of countries offering the best conditions for investing in housing and commercial properties. Rating Forex has compiled the top states with the most optimal conditions for Russians 💯.

Greece

In Greece Can:

• ❗ buy a house or plot for construction;
• ❗ invest in a hotel.

All these options give the right to obtain a residence permit. Minimum investor capital requirements range from €0.25 million to €0.8 million.

The price of Greek real estate increases annually by 6–12%. This has been the trend for the last 8 years. Rent is also becoming more expensive. In 2023, it grew by an average of 10%.

📈 Most of the owners of square meters in Greece rent them out. People are not afraid even of hefty taxes, which depend on the amount of income received by the landlord. They range from 15% to 45%.

Georgia

In 2022 alone, Russian investors purchased over 15,000 real estate properties on Georgian territory. This is more than the investments of all other foreigners combined.

The most attractive cities for purchasing square meters:

• 🟨 Tbilisi,
• 🟨 Batumi.

The activity of investors in these two locations has led to the fact that real estate has risen in price by almost 1.5 times. But even despite this, there are still objects at a very affordable price.

📈 Some apartments in Georgia ask for up to $30,000. The best part is that there is no real estate tax in this country. Plus, holders of a Russian passport do not need a visa to live.

With an investment of $100,000 or more, you can apply for a residence permit 📄. This has led to the fact that rental prices in Georgia have gone up significantly. Landlords’ profit is over 10% per annum 😮.

Spain

In 2023, a square meter of Spanish housing cost about €1,955. If you invest €500,000 or more, you can get a residence permit. But you will have to fulfill a few more requirements.

One of the disadvantages of investing in real estate in Spain is high taxes. The transfer of ownership will cost 6–10% of the transaction size. If the object is commercial, the state will take 25%.

📈 You will also have to pay property taxes. You need to pay 1.1% per year. There is an income tax. If the investor is from another country, he will be charged 1.1–2% of the housing price.

UAE

Arabs give residence permits for different periods. It all depends on how much the property was purchased for. If the investor has invested more than $205,000, the residence permit will only be valid for 2 years. When the investment volume is more than $545,000, you can count on 10 years.

Housing in the Emirates is expensive. For example, in Dubai they ask for more than $380,000 for an apartment. A villa costs $700,000.

📈 All foreigners in the UAE can only settle in certain areas. They will also have to pay tax for changing the owner of the property. It is from 2% to 4%.

Malta

To obtain a residence permit in Malta, you need to invest more than € 220,000. The government will charge the buyer a tax of € 5,500–6,000. This does not include the real estate fee, which you will also have to pay.

📈 Not all Maltese housing can be rented out. Special locations are allocated for this.

Residence permits in Malta are received by those who have passed a test in English or Maltese and become local tax residents. You will have to pay up to 15% of your income. But only if the first ones exceed € 15,000 per year.

Hungary

To obtain a residence permit on Hungarian territory, you need to invest at least €500,000 in the country for 5 years. The government will charge 4% for the transfer of ownership.

📈 Housing prices in Hungary are steadily rising. Over a period of 8 years, a square meter has risen in price by 2.5 times.

Cyprus

To obtain a Cypriot residence permit, you need to invest at least €300,000 in local real estate. In this case, the investor must prove that his income exceeds €50,000 per year.

📈 Not every property is suitable for resident status. A residence permit is only available for primary purchases. But there is no annual tax.

Thailand

Russian investors are actively investing in Phuket and Pattaya. The reason is high tourist popularity. There is a real chance to make a profit from rent for a whole year.

📈 The cheapest piece of Thai real estate costs $50,000. It is delivered fully furnished.

Without a visaand you can stay in Thailand for up to 3 months. If you buy a home for $300,000, you can apply for a residence permit.

Indonesia

In Indonesia, investors are most attracted to Bali. This is an island where there are tourists all year round. That’s why the prices here are serious 🕶️.

For a small studio apartment in Bali they ask for no less than $100,000. Moreover, it is impossible to buy housing for eternal possession. Foreigners have the right only to long-term rent.

Turkey

Since 2023, only those who have bought housing 🏠 for $200,000 can apply for a residence permit in Turkey. This has reduced demand from Russians. From January 2024, to obtain citizenship rights, you need to invest $600,000 in local real estate.

📈 Individual properties in Turkey are asking $50,000. Their rental yields 5–7% per year. But you will have to look for long-term tenants. According to the new laws, renting out an apartment in a high-rise building for a short period of time is only possible if all residents agree.