12 Best Countries to Buy Vacation Rental Property (Airbnb)

Buying property and starting a vacation rental business abroad can offer several potential advantages. Firstly, by renting out a property to vacationers, the investor can earn money to offset the cost of owning the property and potentially make a profit. Secondly, owning a vacation rental property overseas can provide investors with a second home in a new and exciting location. And last but not least, real estate values appreciate gradually, so owning a vacation rental property overseas could potentially increase in value over time, providing the owner with a long-term investment. However, it's easier said than done. There are many factors to consider when buying a vacation rental property in another country, like taxes, location, build quality, and of course, paperwork. Plus, a lot of hard work goes into making an Airbnb-style vacation rental business successful, but in the end, it's all worthwhile the effort once the property starts to generate decent revenue. The countries listed in this video are some of the best to invest in vacation rentals as they receive lots of visitors each year and host an abundance of touristy spots to choose from. Additionally, all of these countries allow foreign nationals to invest in their property market and start a short-term rental business. 12. Mauritius Despite being a small island nation in the Indian Ocean, Mauritius has become one of the most popular tourist destinations in the world. It receives almost 2 million tourists each year. Buying a vacation rental property in Mauritius can be a smart financial decision as more and more foreign investors are racking up residential properties here. Plus, with its growing tourism industry, stable political environment, favorable tax laws, and diverse culture, it's an attractive location for a long-term investment. Moreover, it has plenty of popular tourist areas to start an Airbnb-type rental property. Generally, prices for apartments and houses in popular tourist areas and cities such as Port Louis and Grand Baye are around $75,000 to $500,000, while the average daily rent for a furnished one-bedroom apartment ranges from around $30 to $150 per night and a larger two-bedroom apartment can range from $50 to $200 per night. These prices are influenced by several factors. Properties located in popular tourist areas, close to beaches, or with scenic views tend to command higher prices than properties located in less desirable areas. 11. Greece A beautiful country with a rich cultural heritage, stunning landscapes, and beautiful islands, Greece is one of the most popular tourist destinations in Europe, attracting around 40 million visitors each year, and out of this number, almost 50% only come to visit its islands of Crete, Santorini, Corfu, and Rhodes. This makes investing in a vacation rental property in Greece a potentially lucrative opportunity. On top of this, there are many other pros of buying vacation rental here. Firstly, the Greek government has implemented a series of tax incentives for those investing in tourism industry. This means those who want to buy a vacation property here are eligible to avail these incentives. Secondly, properties in its famous cities and islands like Athens and Crete generate strong rental yields throughout the year because both of them receive local and international tourists regardless of the season. Furthermore, utilities are affordable here, which makes it easy to maintain a vacation rental. When it comes to prices, they're different throughout the country, with the average listing price of an 80-square-meter apartment in the main hub of Athens around $160,000 to $200,000, while prices of similar apartments near the coastal parts of Crete are around $120,000 to $150,000. 10. United Arab Emirates The United Arab Emirates, and specifically its city of Dubai, has plenty of exciting opportunities, making it a great place to set up an Airbnb-style vacation rental inn. However, buying a property here is somewhat expensive, and most of the people who start Airbnb-style vacation rental businesses here are into sub-leasing. So typically, the investor leases an agreement with the owner for around 6-12 months to rent a property, and afterwards they furnish the estate and advertise it themselves on platforms like Airbnb and Booking.com as short-term rentals. This is a very lucrative and common practice in places like the UAE. In fact, lots of investors acquire whole apartment complexes by this method in Dubai. Nevertheless, if the investor is not into sub-letting, they can always buy the property and list them as a short-term rental themselves. But then again, owning real estate is expensive in Dubai, and only a one-bedroom apartment can cost around $250,000 to $500,000 depending upon the location and construction date. 9. Indonesia Indonesia is a popular tourist destination, attracting around 20 to 22 million visitors each year, with its beautiful beaches, tropical islands, and a vibrant culture. But not all parts of the country get along with tourism. Only the areas of Bali, Java, and Lombok are of interest for most trying to start a vacation rental. Plus, the buying process in this country is a bit complicated, and foreigners cannot own land outright. Instead, they can own buildings and structures on the land, as well as leasehold rights to land. This means buying a detached house requires lots of paperwork and full ownership is not retained. However, buying an apartment is straightforward, and most can gain full ownership in areas like Bali and Lombok. With a median price of a one-bedroom apartment in Bali coming at around $35,000, it's an affordable place to initiate a vacation rental business. In peak seasons, this sort of furnished apartment can go for a daily rate of approximately $50 to $100. 8. Mexico Starting a vacation rental business in Mexico has always been a rewarding venture for many entrepreneurs. The country receives almost 30 million tourists each year, together with almost one and a half American and Canadians residing permanently in Mexico. In addition, it offers a variety of stunning locations for vacation rentals, such as Playa del Carmen, Puerto Vallarta, Tulum, Cabo San Lucas, and Cancun. However, it's important to research local laws and regulations when buying a property here, and it's always recommended to hire a reputable property management company to ensure paperwork and legitimacy of the purchase. In terms of prices, median listing of a mid-sized beachfront apartment in areas like Playa del Carmen and Puerto Vallarta is about $60,000 to $200,000, while per-day rent for a similar furnished apartment is around $50 to $150. 7. Thailand Known for its unique culture, beautiful beaches, exotic cuisine, ancient temples, warm hospitality, and an active nightlife scene, Thailand welcomes almost 40 million visitors each And according to data accumulated from websites like Booking.com and Airbnb, the country has one of the highest rates of vacation rentals per capita. On the downside, just like Indonesia, Thai law forbids foreign nationals to obtain 100% ownership of land in their name, but they can fully own buildings or structures. So this evidently means foreigners can only get full ownership of a condo unit. On the flip side, there are certain ways to get around the law of land ownership, but that requires the assistance of a very reputable and trusted lawyer. Anyhow, apartments are still purchasable and the option of subletting is also available. The best places to start a vacation rental are Bangkok, Phuket, Pattaya, and Chiang Mai, all of which are unique in their own way and provide a varying range of price brackets. 6. Croatia A beautiful country located right on the Adriatic Sea, known for its stunning coastline, clear blue waters, picturesque islands, and fascinating culture, Croatia has become an increasingly popular tourist destination in recent years, with over 20 million visiting each year. This has all of a sudden led to a growing demand for vacation rental properties in Croatia, making it an attractive location for real estate investment. Some of the best places to invest in vacation rental include Dubrovnik, a historic city with stunning architecture and beautiful beaches, Split, a coastal city with a range of historical attractions and lively nightlife, Var, a picturesque island with crystal-clear waters, and Istria, a peninsula with beautiful natural scenery and world-famous towns. Buying prices in all of these areas are different, but average listings for a one-bedroom apartment usually start from $60,000 to $200,000, with average rental price per day starting at $60 to $200. 5. Italy Italy is a country that is always brimming with tourists. In fact, it's ranked in the fifth most visited countries in the world. Most of the vacation rentals in the country remain booked throughout the year, so for those planning to invest in vacation properties, this country would be ideal to start with. Some of the best places to consider when starting a vacation rental here include Rome, Florence, Venice, Tuscany, the Amalfi Coast, and Lake Como. All of these locations have high demand for accommodations and they offer a range of attractions and amenities, as well as easy accessibility to travelers. But bear in mind, prices are higher in these areas, especially for those looking to buy in the main hubs. But nevertheless, the returns are also very good and most Italian real estate values have historically appreciated over the long term, making it a sound investment for those looking for a long-term return on investment. 4. Turkey To some, buying a vacation rental in Turkey might seem unorthodox, but the country receives almost 50 million visitors each year and is ranked as the sixth most visited country in the world. This creates a high demand for vacation rentals, especially in popular tourist destinations such as Istanbul and Antalya. Pricing of small apartments in these cities can start from as low as $50,000 to $100,000 and the average renting price per day is approximately $40 to $80. In addition, there are many pros to buying property here. First and foremost, real estate prices are very affordable and the conversion rate of the local currency is also very favorable. Besides this, the Turkish government has introduced several measures to attract foreign investment, including tax incentives and streamlined property acquisition processes. Lastly, there are many reputable real estate agents and legal advisors in Turkey, who assist foreign investors in purchasing and managing vacation rental properties, making the process easier and more accessible. 3. France For most investors, the idea of investing in a vacation rental in France is far-fetched, as property prices in its main cities like Paris and Lyon are very expensive. But nevertheless, it's the most visited country in the world. Almost 90 million people hail to France each year and its city of Paris boasts the highest number of Airbnb property listings. As a whole, it's a large and diverse country, with a wide range of regions and attractions that appeal to different types of travelers. From the beaches of the French Riviera to the imposing Alps and the metropolitan cities, there's something for everyone in France. In addition, France has favorable tax laws for property owners. Non-residents are exempt from their wealth tax and only pay a flat tax on rental income. This can provide an additional incentive for investors to buy rental property in France. 2. Portugal With a great Mediterranean climate, offering mild winters and hot summers, Portugal attracts visitors throughout the year. Its affordable property prices, favorable tax policies, a growing economy, and a rich cultural heritage also draws investors from around the world. This means there's a high demand and competition for vacation rentals, particularly in popular areas like Lisbon, the Algarve, and Porto. Aside from the mainland, its islands of Madeira and Azores are also great places to invest in a vacation rental. Generally, the average prices range from $70,000 to $500,000 in the whole country, depending on the location, build quality, and size of the property, while the median price for an Airbnb-type rental in Portugal is around $70 to $100 per night. However, prices can be higher in Lisbon and Porto, where the average price can range from $100 to $200 per night. On the other hand, prices can be lower in less popular destinations or in the off-season. 1. Spain Spain's Mediterranean climate, beautiful beaches, rich history, and cultural attractions make it a top choice for many international holidaymakers. It receives almost 80 to 85 million tourists each year, which leads to a high demand for vacation rentals, meaning owners can expect a good return on investment in terms of rental income. According to data obtained from several online booking services, the average vacation rental yield in Spain is above 5%, which is higher than in many other European countries. On top of this, almost all major areas in the country are good to invest in vacation rentals. The coastal areas such as the Costa del Sol, Costa Blanca, and Costa Brava are popular choices due to their sandy beaches and abundance of activities for tourists. While the Balearic Islands, including Ibiza and Mallorca, are also highly sought after, offering great opportunities for investors, they are relatively expensive. In addition, historic cities such as Madrid, Barcelona, and Seville also offer year-round activities, making them ideal for short rentals.