Whether you’re thinking of buying real estate as rental property or simply buying a vacation home, the EU definitely boasts many opportunities to invest in. Below we list the top 5 countries to buy property in the EU.
Spain
Sunny Spain is known for its relaxed atmosphere and friendly people making it an extremely appealing place to invest in property. And although the prices of property in Spain had fallen by an astonishing total of 41.9% during Q4 2007 to Q3 2015, prices have recovered since then. In 2016, things finally took a turn for the better when housing prices increased by 1.67%. This was followed by a growth of 4.47% in 2017 which was predominantly fuelled by foreigner investment made in places like Barcelona and Costa Del Sol. Today, the best cities to invest in which have the highest rental return are places like Barcelona and Madrid.
Malta
Malta, the tiny island nation in the heart Mediterranean is one of Europe’s hidden gems. While its size might be miniscule in comparison to other countries in the EU, Malta’s economy continues to boom year after year making it a fantastic investment opportunity for property buyers. That said, the prices of property in Malta have experienced rapid growth for the past three consecutive years. The most noticeable increase was seen in Q4 2016 when the Central Bank of Malta reported that the prices for apartments had risen by 15.86%, prices for terraced houses had increased by 13.33%, prices for maisonettes had increased by 20.45% and prices of other houses (villas and houses of character) had increased by 1.96%.
On choosing to buy property in Malta, you can benefit from one of the schemes available provided that you manage to meet the criteria. The schemes that are currently available include a ‘First Time Buyers scheme’ and a ‘Second Time Buyers scheme’ which gives buyers the opportunity to benefit from an exemption on stamp duty up to certain amounts.
While prices and the increment of property prices is great in Malta, EU citizens and foreign nationals do have a few restrictions though. When buying property in Malta as a foreigner, you’ll only be able to purchase one property that’s meant to be for owner-occupancy in the majority of cases. There are a few zones in Malta, however, which are exempt from this. These include property that’s located at Tigne Point, Chambray, Manoel island, Cottonera and Portomaso. You could even consider using a scheme like Malta’s Residence and Visa Programme (MRVP), effectively becoming a resident of Malta by investment.
Portugal
Portugal’s 3,300 hours of sunshine per year and all-round beauty has led the country to be an attractive place to invest in property over the years. The country is home to a vast number of expats and many of them choose to buy property there. And as Portugal’s economic conditions continue to improve and the demand for property has consistently carried on growing, the EU state’s housing prices have increased over time. In 2017, Portugal’s housing prices increased by 4.84% according to INE. The best news for foreign buyers who are seeking to buy property in Portugal is that the laws are pretty lax. Unlike in Malta, there are no property ownership restrictions for buying real estate in Portugal and costs tend to be quite low. For non-EU citizens who opt to buy property in the country that’s worth a minimum of €500,000, the government will also grant a 5 year residency which allows holders the right to work or study in Portugal and travel to Schengen countries too.
France
With its rich history and scrumptious cuisine, L’Hexagone is also an enticing place to buy property in the EU. Presently, there are no restrictions on foreign ownership in France and most properties are freehold. Currently, the best place to buy in France is definitely its capital city, Paris. In Q1 2018, housing prices rose by 3.12% in the capital. And with the city of lights due to host the 2024 Olympics, having a property in Paris will be a fantastic rental investment for you to have as well as a great second home too.
Germany
Germany’s vast landscape boasting forests, rivers, mountains and even beaches make it an inviting country to invest in property within the EU. The country’s economy has always been very strong. And during the wake of the 2008-2009 financial crisis, Germany was one of the few countries to evade a slump in the housing market.
Fast forward to 2018 and the hedonic price index has risen by 7.29%. Presently, the prices of houses and apartments in Germany are set to continue to rise especially in big cities including Berlin, Munich and Frankfurt. There is always demand to rent in these three cities, however, the rental yield is not very high. If you do decide to buy property to rent in either one of the cities, you should opt to buy a mid-range property that you can rent out at an affordable rate.
