Looking to buy property in Europe? The highest and lowest property taxes
Lithuania and Hungary are among the best countries to invest in property, while Belgium and France are ranked among the worst ones, according to a new study by UK relocation company 1st Move International.
The report examined key elements of property investments across European countries, including property tax rates, income tax on rent and gross rental yield, and their findings suggest that Lithuania is the top choice as the best country for real estate investment.
The best places to invest in property in Europe
Lithuania, the capital of Vilnius promises an average rental yield of 5.65%, according to Global Property Guide's latest data.
Rent prices are high in the country, more than 170% of what they were in 2015, according to the OECD. The income tax on rent is a moderate 15%. Foreigners are not restricted from purchasing property.
Property prices jumped by more than 10% in the second quarter of 2024 compared to the previous year, according to Eurostat and the trend is likely to continue, providing a good return on investment.
Estonia is ranked the second-best choice for investors. Non-residents of the Baltic state are also allowed to buy property in the city. The buying cost, including taxes, is considered low, about 1.3%. Meanwhile, rental prices are relatively high, with an annual gross rental yield of about 4.5% and the income tax on rent sitting at 20%.
With property prices having risen by 6.7% during the year up to June 2024, the value of the investment could increase further.
Romania ranks third in this report, where advantages include a relatively cheap additional costs of buying, a very low average rental income tax rate of 10% and a relatively high gross rental yield of 6.46% per year.
Ireland promises high yields, mainly due to high rental prices, but elevated taxes could take a bite out of the annual net income. The country is facing a housing crisis with not enough homes being built for the increasing population, as prices continue to soar.
According to this report, there are also good opportunities to invest in property in central and eastern European countries such as Hungary, Slovenia and Poland, where rents are high (in Hungary 180% of their 2015 level), but taxes are moderate.
House prices in Poland rose by 17.7%, in Hungary 9.8% and in Slovenia 6.7% in the 12 months previous to June 2024, according to Eurostat.
The worst places to invest in real-estate
Meanwhile, the worst countries to consider property investment according to this report are Belgium, closely followed by France and Greece.
Belgium has one of the highest transaction costs in Europe, and the income tax on rent can easily reach 50%. The average yield is about 4.2% but this can be higher in Brussels. Property prices increased by 3.4% year-on-year in the second three months of 2024.
France is consideredthe second-worst country to invest in property, according to the report, which highlights that the taxes and costs of buying and renting are relatively high. For instance, real estate investors' average rental income tax rate is 18.28%. The annual gross rental yield is around 4.5%. According to Eurostat, French property prices actually declined by 4.6% this year.
Greece came in third place in the list of the worst countries for property investment, due to the high costs of buying and raised levels of income tax with the average rental income tax rates being over 33%, notes the report.
What Google can tell about the trends
The report looked into which countries are the most popular based on Google searches and found that Spain and Portugal were the top destinations to buy.
Global searches for buying property reached 279,000 between 2023-2024 for Spain.
The country offers non-resident tax benefits to foreign investors, a standard rate of 19% for EU/EEA citizens or 24% for third country citizens on taxable income (like renting out a property) in Spain.
The second most-searched country was found to be Portugal with more than 270,000 searches on search terms relating to buying property in the country, where foreigners can buy property under the same conditions as locals.
However, the popularity of these two countries has resulted in a chronic shortage of affordable housing for the locals. Nominal housing prices have risen by almost 70% in Portugal since 2015, according to OECD.
Please be aware: This information does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances. Also remember, we are a journalistic website and aim to provide the best guides, tips and advice from experts. If you rely on the information on this page, then you do so entirely at your own risk.
About AtoZ Serwis Plus
AtoZ Serwis Plus is a reputable and well-known B2C and B2B immigration agency providing specialized immigration services since 2009. With company registration offices in Poland and as a European leader, our official websites operate in over five European countries, and partner offices are located in various countries worldwide; it offers individualized immigration services to clients globally.
Supported by Polish attorneys and with company registration numbers Regon: 382604058, NIP: 5252780856, and KRS: 0000770916, AtoZ Serwis Plus Sp. z o.o. is a Polish Overseas Career Consultant and is considered one of the largest B2C and B2B immigration firms in Europe. It works closely with regulated and licensed immigration lawyers in its offices in Poland and Portugal.
AtoZ Serwis Plus has extensive experience managing international recruitment projects and specializes in providing staffing and immigration services. They assist individuals from countries such as Ukraine, Belarus, Moldova, Russia, Georgia, Armenia, Bangladesh, Nepal, India, and others in finding employment opportunities in Serbia, Croatia, Romania, Poland, Malta, Portugal, Germany, and other European countries.
Their services cater to individuals seeking professional growth and those looking to relocate permanently to Europe. AtoZ Serwis Plus charges reasonable fees for its services and offers flexible payment options.
Overall, AtoZ Serwis Plus aims to provide high-value immigration services, leveraging their expertise, international network, and partnerships to assist clients in achieving their career goals abroad.
For Employer Registration!
Are you looking to Hire? Let us help you find the perfect candidates!
-
Step 1: Fill out the employer questionnaire. Please provide us with the necessary details about your job requirements and company. We'll use this information to customize our services for you. Fill in the form.
- Step 2: Choose the best offer. Once we receive your completed questionnaire, we'll prepare a tailored proposal for recruitment, employee leasing, or outsourcing services.
- Step 3: Welcome your new employee. We'll use our extensive network and resources to find the ideal candidate for your business. We have favourable conditions for you and the employee.
Take advantage of exceptional talent for your company. Complete the questionnaire today, and let us handle your hiring needs.
Do you need new employees? Our Immigration agencies can assist you in finding the best candidates from various countries, including:
-
CIS: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan.
- Southeast Asia: Afghanistan, Bangladesh, India, Indonesia, Laos, Malaysia, Mongolia, Nepal, Pakistan, Philippines, Sri Lanka, Vietnam.
- Middle East: Bahrain, Kuwait, Iraq, Oman, Qatar, Saudi Arabia and the United Arab Emirates
- Africa: Nigeria, Algeria, Congo, Côte d'Id'IvoireEgypt, Ghana, Morocco, Sierra Leone, Togo, Tunisia.
- E.U. and EEA: E.U.ria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
We take a personalized approach to each of our clients and ensure that we understand your specific needs and requirements for candidates before deciding on the cost of our services. It's a critical step in the recruitment process, and we ask that you fill in all the fields as thoroughly as possible to help us and the job applicants.
For Job Seeker Registration!
If you'd like to find work opportunities in Europe, please complete the application form on our website. Once you have filled out all the necessary details, our team at AtoZ Serwis Plus will review your application and contact you to give you more information. Don't hesitate to fill out the form and take the first step towards your new job. Fill in the form.
Please be aware that we only communicate with selected candidates. If you do not receive a response from our recruitment specialist, we cannot offer you a position.
Contact Us AtoZ Serwis Plus Group provides professional workforce solutions to companies across Europe. With over 14 years of experience, we have successfully placed workers from E.U. and non-EU countries. Our comprehensive immigration services cater to nearly 10,000 jobseekers annually, making us one of the leading immigration agencies in the CEE and E.U. regions.
Become our recruitment and immigration partner!
Join Us: Premier Partnerships for Recruitment and Immigration Agencies.
Partner with us as a recruitment or immigration agency to access job opportunities and work visa services. Register now by filling out our online form.
Why Partner with Us?
- Extensive Job Opportunities: Diverse job openings across industries and locations.
- Comprehensive Visa Services: Simplify the visa application process.
- Global Reach: Connect with employers and candidates worldwide.
- Support and Guidance: Dedicated support for a smooth partnership.
Benefits
- Increased Revenue: Expand your services and attract more clients.
- Enhanced Credibility: Partnering with us adds credibility to your agency.
- Seamless Integration: Easily integrate our services with your operations.
- Access to Resources: Valuable tools to better serve your clients.
How to Join
- Register: Fill out our online form.
- Verification: We review and verify your credentials.
- Agreement: Sign the partnership agreement.
- Get Started: Offer our job and visa services to your clients.
Would you like some advice? So that you know, the information I've included is for you to review. You'll always consult with your legal and tax advisor(s) and follow their guidance. AtoZ, Serwis Plus cannot assist with legal or tax matters. The information presented is not specific to any particular company or workforce nor reflects how AtoZ Serwis Plus products are distributed in any jurisdiction. In reading, it is general. AtoZ Serwis Plus makes no representations or warranties regarding this information's completeness or timeliness. It shall not be liable for any losses from using or relying on it. Please be careful when using this information.
