TOP COUNTRIES TO INVEST IN
Many real estate investors are looking for global markets for investments in foreign real estate that will bring them high rental returns. In recent studies, GOBankingRates and many other global real estate think tanks have identified Indonesia in the top 5 best countries for investment, while the highest return on investment (ROI) is on the island of Bali.

To give you an objective comparison of prices and rental yields, we looked at the cost per square meter and the average rent for 2-bedroom apartments in the top 10 countries.

If you decide to create capital and positive cash flow by investing in the foreign market, make sure that you are properly oriented in financial systems. You should be prepared for the fact that in different countries the procedures for the purchase, sale, rental and registration of documents differ.
INDONESIA
Thanks to a healthy economy and a variety of natural resources, Indonesia is one of the best countries for real estate investment. There is a good investment climate here, so if you invest there, chances are high that you will not feel disappointed! Another reason why you might consider buying a property in Indonesia is because of its lucrative domestic market.

It is a densely populated country of 275 million people and developing tourism.

Bali is in the top 20 cities visited worldwide for 2018. On average, 12 million people arrive in Indonesia per year, most of whom visit the island of Bali with a population of 4 million people.

On average, tourists in Bali rest for 1 month. Thus, every fifth person in Bali is a tourist.

As an overseas landlord, you can rent out real estate in Bali and enjoy more stability and more profit as rents rise.

Indonesia on average
  • Rental income: 8.61% per year
  • Effective rental income tax: 20%
  • Rent: 2486 USD
  • Average cost of the object: $1200 per sq.m. (in the city center), $656 per sq.m. (outside the center)

Bali Island - accommodation suitable for tourists
Rental income: 12% per year
Effective rental income tax: 11%
Rent: 2486 USD
The average cost of the object in : $1800 per sq.m.
COLOMBIA
Colombia, characterized by a desire for innovation and change, may be a good choice for investing in real estate abroad. Over the past decades, its economy has grown by 3.8%, and its GDP has even doubled, which clearly indicates the enormous progress made by the country! In addition, it has a high rental income, which means that you can make more profit by investing here.
  • Rental income: 6.51%
  • Effective rental income tax: 24.75%
  • Rent: $1548
  • The cost per square meter of the apartment: 1400 dollars (in the city center), 1100 dollars (outside the center)
PHILIPPINES
If you are planning to buy property all over the world, consider buying in the Philippines. With the increasing number of foreigners in the country, the value of real estate in this country has great potential for growth in the future, which will allow you to reap the benefits of the investments you make today! There is a huge housing shortage in the Philippines, which means that more than 20 million Filipinos are looking for a property to rent. The increase in the number of middle-class buyers in the Philippines has also led to an increase in the supply of homes in this category. Another interesting thing to note is that, unlike Indonesia and Colombia, the Philippines charges a lower property tax, which leads to a very high return on investment.
  • Rental income: 6.13%
  • Effective rental income tax: 4.06%
  • Monthly rent: 2422 USD.
  • The cost per square meter of the apartment: 1800 dollars (in the city center), 1000 dollars (outside the center).
PANAMA
Panama is one of the best countries for real estate investments. Thanks to the investments of Venezuelan, Colombian and Argentine buyers, the real estate market has become quite stable. It is constantly developing in comparison with other real estate markets in this region. In addition, it is a fertile granary, so by investing there, you can also earn money by participating in agricultural projects, if you want.
  • Rental income: 5.75%
  • Effective rental income tax: 2.08%
  • Monthly rent: $2,075.
  • The cost per square meter of the apartment: $ 2,200 (in the city center), $ 1,500 (outside the center).
MOROCCO
  • With an encouraging macroeconomic status, Morocco may be one of the best places for foreign investment in real estate. It is relatively more affordable and also offers a higher standard of living. In addition, it has an efficient banking structure that can best protect your business interests! In case you are wondering about the double taxation problem that most expats in other countries have to face, don't worry, you don't face such problems in Morocco.
  • Rental income: 5.52%
  • Effective rental income tax: 10.7%
  • Rent: $854
  • The cost per square meter of the apartment: 1500 dollars (in the city center), 800 dirhams (outside the center).
UNITED ARAB EMIRATES
Do you want to invest in a tax-friendly country? You might consider investing in the UAE. The country offers a higher rental yield, which allows you to get the maximum benefit from your investment. Since there is no income tax, you also don't have to pay tax on the accumulated rent. If your goal is to invest in residential buildings, you can choose from a wide range of real estate properties in Dubai. According to the Bayut real Estate report, the most popular areas of Dubai for buying apartments are Dubai Marina, Downtown Dubai, International City and Palm Jumeirah. The average cost of studios, apartments with 1 and 2 bedrooms in the Dubai Marina area ranges from 850 to 1.95 million dirhams UAE, while the average cost of studios, apartments with 1 and 2 bedrooms in the center of Dubai is between 1.1 million dirhams UAE and 2.9 million dirhams UAE.
  • Rental income: 5.19%
  • Rent: $3070
  • The cost per square meter of the apartment: 9000 dirhams UAE or 2500 US dollars (in the city center), 7000 dirhams UAE or 1900 US dollars (outside the center)
THAILAND
You can count on Thailand when planning investments abroad. The country has a strong economy and a developing tourism industry, which can make your investment more profitable. Make sure you invest your money in the apartment market, because the apartment is more profitable and easily manageable compared to other individual properties. Moreover, this is the only real estate that you can take ownership of, so buying it will be more profitable for you!
  • Rental income: 5,13%
  • Effective rental income tax: 2.73%
  • Monthly rent: 2029 USD.
  • The cost per square meter of the apartment: $ 3,500 (in the city center), $ 1,800 (outside the center).
CYPRUS
Thanks to the stable rental yield, Cyprus has become one of the most important countries for real estate investments. You can enjoy the benefits of a stable income that will cover your current expenses, mortgage payments and other monetary problems that may arise when buying a property. Real estate prices are also quite decent, so investing in the Cyprus real estate market can be a win-win situation for you!
  • Rental income: 5,12%
  • Effective income tax on rent: 0%
  • Rent: $966
  • The cost per square meter of the apartment: $ 2,300 (in the city center), $ 1,700 (outside the center).
GERMANY
When it comes to investing in real estate in one of the European countries, Germany may be your most reliable choice. Having reached a state of financial stability, it has established itself as one of the leading financial forces in the world, so you will not incur losses by investing there. Another factor that makes Germany one of the safest countries to invest in real estate is its low cost of living and the effective income tax rate on which you can earn.
  • Rental income: 3.99%
  • Effective rental income tax: 2.71%
  • Rent: $1,769
  • The cost per square meter of an apartment: 5500 dollars (in large cities such as Berlin), 3700 dollars (outside the center).
FRANCE
The French real estate market is one of the most popular destinations for long-term return on investment in Europe. This allows you to finance within the country - something that not all countries can offer! Mortgage interest rates are quite low, and the loan-to-value ratio reaches 85%, which means you can choose more refinancing options. As for taxation, the tax on rental income is lower than in other European countries.
  • Rental income: 2.79%
  • Effective rental income tax: 10%
  • Rent: 4379 US dollars
  • The cost per square meter of an apartment: $ 6,900 (in large cities such as Paris), $ 4,200 (outside the center).
TURKEY

Turkey has a record year in real estate sales, which grew by 107% compared to May 2020, largely due to foreign buyers. Foreign investment has increased partly due to the successful CIP program in Turkey, but they account for only 20% of total sales. Turkey is also considered an attractive place for living and investment opportunities. Half of the property sales this year were in Istanbul, the busiest and most historic city in the country.
Istanbul was the ninth most visited city in the world in 2018. It lost to such famous cities as Paris, London, New York and Tokyo... but outstripped other major cities, including Berlin, Barcelona, Rome, Los Angeles.
In addition to the growth of tourism, Istanbul and Turkey as a whole are experiencing strong economic growth as the population increases and the middle class expands. Turkish buyers are returning to the market due to lower interest rates.
One of the main advantages of investing in Istanbul is the low cost of entry. A rental unit in this market is within the budget of almost any investor.
And this completes our list of the best countries for real estate investment. However, in addition to these countries, many people also invest in foreign real estate in the USA and the UK. You can expect a rental income of 4.31% by investing in the UK and the USA, which can offer you an income of 4.69%. What is your investment budget?
If you have a million dollars to invest, look at properties around the world that you can buy for $1 million.
The following sources were used for this article:
  • https://www.bayut.com/mybayut/countries-real-estate-investment/
  • https://www.gobankingrates.com/investing/real-estate/best-countries-investment-property/
  • https://tradingeconomics.com/indonesia/tourist-arrivals
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