The Best Countries for Real Estate Investment in 2025 : Europe

If you're exploring **real estate investment in Europe**, 2025 is shaping up to be a promising year. Whether you're looking for strong **rental yields**, long-term **capital growth**, or even a route to EU residency, some countries stand out as top performers. Below are three of the **best EU countries to invest in property this year**, based on ROI potential, local policies, and market trends. Greece – Ideal for Lifestyle and Long-Term Returns Greece is coming back strong as a nice option to consider thanks to its warm climate, safe environment, and relatively investor-friendly tax benefits. While the Golden Visa policy is slowly shifting away from real estate, demand in areas like **Athens and Thessalonikki**, as well as some larger islands such as Corfu remain in high demand with low entry prices and growing demand. Additionally local Greek banks offer financing options from as low as 40k mortgages. **Why Invest:** * Stable tourism industry * Favorable tax regime for expats * Strong short-term rental market **ROI Insight:** Properties in prime coastal regions can offer **6–8% rental yields** with consistent seasonal demand. Latvia & Lithuania – A Hidden Gem for Digital Investors Latvia and Lithuania are a underrated option, especially for tech-savvy and remote investors. The capital, Riga and Vilnius, is seeing rising demand due to its digital-first economy and transparent legal framework. Many growing multibillion dollar companies are opening their offices there, Revolut being one of the prime examples - coming from fintech sector. Why Invest: ? * Low flat income tax * Strong legal protections * Affordable entry prices - Latvia especially starting from 30k **ROI Insight:** Lower purchase prices and a pro-business climate make it easier to achieve **high cash-on-cash returns**, especially with long-term rentals in residential real estate. Spain – Strong Mid-Term Rental Market Despite strong demand, Spanish property prices are still recovering from the 2008 crash, offering great value in cities like **Valencia, Seville, Alicante, Murcia**, and **Málaga**. **Why Invest:** * High tourism and expat demand * Favorable climate and infrastructure * Growing mid-term and longterm rental market with rising rent prices. **ROI Insight:** Investors are tapping into **3–6 month rentals** but all-year-round enjoyable climate and high population with strong migration offer stable market with steady returns with fewer regulatory hurdles than short-term Airbnb-style lets. However, Spanish Urban Housing Acts and laws are heavily regulating short-term rentals and tax system taxes non-EU residents with higher flat 24% rate on rental income, while EU non-residents pay a lower 19% flat tax rate. On the other hand if you are resident or decide to become one you can write off 60% of tax on residential long-term rental contracts.

REAL ESTATE