No single property market is right for all investors. The ideal market depends on your investment objective — income yield, capital growth, lifestyle, or residency rights — your willingness to manage complexity, and your overall financial situation. This guide provides a comparative overview of eight popular international property markets, designed to help you identify where further investigation is worthwhile.
As with all investment decisions, research the specific location and property type carefully and seek local legal advice before committing. Rules, taxes, and market conditions change; the information below reflects the general position as of mid-2026.
United Kingdom
The investment case: the UK is a mature, transparent property market with strong rule of law, a large rental market, and deep liquidity. London in particular has a global rental market driven by demand from international companies and individuals. Regional UK cities (Manchester, Birmingham, Leeds, Edinburgh) offer higher gross yields than London with growing economies.
Entry costs: stamp duty land tax (SDLT) is a significant purchase cost. The additional 5% SDLT surcharge applies to second and additional properties (raised from 3% to 5% on 31 October 2024). Non-resident buyers pay a further 2% surcharge on top of standard SDLT rates. A £400,000 property purchase by a non-resident investor buying their second property could attract SDLT of 15% or more on the portion above thresholds — verify the current rates with a solicitor.
Typical gross yields: 3–5% in London; 5–7% in regional cities. Net yields after SDLT amortisation, service charges, agents' fees, voids, and maintenance are significantly lower.
Taxes on rental income: UK income tax on rental profits at the investor's marginal rate (20%, 40%, or 45% for higher earners). Non-residents must register with HMRC's Non-Resident Landlord Scheme. Mortgage interest relief is restricted for residential buy-to-let landlords.
Capital gains tax: UK residents pay CGT at 18% (basic rate) or 24% (higher rate) on gains from residential property. Non-UK residents are also subject to UK CGT on UK residential property gains.
Foreign ownership: there are no restrictions on foreign nationals owning UK property. Full freehold or leasehold ownership available.
Currency: GBP. For investors whose base currency is USD or EUR, UK property provides GBP exposure.
United Arab Emirates (Dubai and Abu Dhabi)
The investment case: the UAE property market, particularly Dubai, combines high gross rental yields, a zero property tax environment, a growing resident population, and no capital gains tax. Dubai has been one of the strongest performing major global property markets in recent years.
Entry costs: Dubai Land Department (DLD) registration fee of 4% of the purchase price. Agency fees of 2% are standard. Total purchase costs typically 6–8% of the purchase price.
Typical gross yields: 5–8% in established areas such as Dubai Marina, Downtown Dubai, Business Bay, and Jumeirah Village Circle. Some newer areas and off-plan with developer incentives advertise higher yields — verify carefully.
Taxes: no annual property tax. No capital gains tax. No inheritance tax in the UAE (though foreign assets may be subject to inheritance rules of the owner's home country — seek advice). Some service charges and community fees apply annually.
Foreign ownership: foreigners can purchase property in designated freehold areas in Dubai. Most of the popular residential areas are freehold. Abu Dhabi has a different and more complex foreign ownership framework.
Currency: UAE Dirham (AED), pegged to the USD at approximately 3.67 AED/USD. For USD or GBP investors, the peg provides currency stability.
Spain
The investment case: Spain appeals to lifestyle buyers and income investors alike. Coastal areas (Costa del Sol, Costa Blanca, Balearic Islands) attract strong tourist and expat demand. Barcelona and Madrid prime residential markets are established and liquid.
Entry costs: Impuesto sobre Transmisiones Patrimoniales (ITP) — transfer tax on resale property — varies by autonomous community, broadly 6–10% of the declared purchase price. On new-build properties, IVA (VAT) applies at 10% (or 21% for commercial). Notary and registration fees add 1–2%.
Typical gross yields: 3–6% across coastal areas; higher in short-let holiday markets but these require licensing and management. Prime Marbella yields can be lower due to high capital values.
Taxes: Spanish income tax on rental income for non-residents — at a flat rate of 19% for EU and EEA residents and 24% for non-EU residents (including UK nationals post-Brexit). Impuesto sobre Bienes Inmuebles (IBI) — annual council tax — is modest. Wealth tax varies by community; non-residents are subject to the national wealth tax on Spain-located assets above a threshold.
Foreign ownership: foreigners can own Spanish property freely. A NIE number (tax identification for foreigners) is required.
Currency: Euro. For GBP investors, currency risk is present.
Thailand
The investment case: Thailand offers attractive property prices by regional standards, a well-established expat and tourist market, high quality of life, and popular destinations including Bangkok, Phuket, Koh Samui, and Pattaya. Short-let rental markets driven by tourism can generate good yields.
Entry costs: transfer fee of 2% of the assessed value; business tax (if seller holds for less than 5 years): 3.3%; stamp duty: 0.5%; withholding tax (seller's cost but affects negotiation). Buyer's costs are typically 2–5% of the purchase price.
Typical gross yields: 5–8% in tourist areas with active short-let management; yields depend heavily on occupancy rates and management quality.
Foreign ownership: foreigners cannot own land in Thailand in their own name. Available ownership routes include: condominium units (foreigners can own up to 49% of the total saleable floor space in a condominium project — freehold ownership of the unit); leasehold (30 years, renewable in theory but enforcement of renewal is a practical risk); Thai company structure (controversial and legally uncertain for property purchase). The ownership restrictions are the most significant constraint on Thai property investment for foreigners.
Currency: Thai Baht (THB). Currency risk is present for GBP, USD, and EUR investors.
Cyprus
The investment case: EU member state with a functioning legal system based on English common law, growing Limassol as a financial hub, established expat community, and attractive non-domicile tax regime for residents. Golden Visa programme provides residency rights.
Entry costs: Transfer fees on registration of title (rates depend on property value — typically 3–8% combined); VAT on new builds (standard 19% or reduced 5% on primary residence first purchase); stamp duty 0.15–0.2%.
Typical gross yields: 4–6% in Limassol and Paphos; holiday let properties in tourist areas can achieve higher occupancy-dependent yields.
Taxes: no capital gains tax on gains from sale of property (with some exceptions for property sold through a company). Low property-related annual holding costs. From 2026, SDC on rental income has been abolished for all Cyprus tax residents (not only non-doms). Non-domicile tax residents additionally benefit from zero SDC on worldwide dividends and interest income.
Foreign ownership: EU nationals purchase freely. Third-country nationals (including British nationals post-Brexit) can purchase property in most areas, with some restrictions near military zones. Full freehold ownership available.
Currency: Euro.
Greece
The investment case: post-crisis economic recovery, Golden Visa programme (one of the most accessible in Europe for property investors), strong island tourism market, and improving property prices from a low base. The Greek islands (Mykonos, Santorini, Crete, Paros) attract premium short-let markets.
Entry costs: ITP (property transfer tax) at 3.09% of the objective value (not necessarily the market price); notary fees approximately 1.5–2%; legal fees approximately 1%; estate agent fees 2–3%.
Typical gross yields: 4–7% in popular areas for long-term rentals; short-let tourist markets can achieve higher yield depending on location, management, and seasonality.
Taxes: Greek income tax on rental income for non-residents at graduated rates. ENFIA — annual property tax — assessed on objective value; amounts vary. Capital gains tax on property sales has been suspended in Greece for some periods — check current status.
Foreign ownership: foreigners can own Greek property freely. The Golden Visa requires a minimum property investment that varies by zone: €800,000 in high-demand areas (Attica region, Thessaloniki, Mykonos, Santorini, and islands with a population above 3,100) and €400,000 in all other areas (thresholds increased in September 2024).
Currency: Euro.
Egypt
The investment case: affordable entry prices, a growing population of over 100 million, government-led new city developments (New Administrative Capital, New Alamein), and a significant Red Sea coastal market (Hurghada, El Gouna, Ain Sokhna) attracting international buyers. Yields can be attractive in USD terms.
Entry costs: registration fees, notary fees, and agent commissions typically add 5–8% to the purchase price. New developments sold by developers often have different fee structures.
Typical gross yields: 6–10% gross in tourist coastal areas; higher yield potential is offset by management complexity and currency risk.
Taxes: Egyptian income tax on rental income; the tax system for non-resident landlords requires local advice. Capital gains taxes apply in some circumstances.
Foreign ownership: foreigners can purchase property in Egypt, though the process is more complex than in Western markets and requires careful legal guidance. Coastal and freehold property in designated developments is the most accessible route for foreign buyers.
Currency: Egyptian Pound (EGP). The currency has devalued significantly in recent years against major currencies — currency risk is a material consideration for GBP or USD investors holding Egyptian Pound-denominated assets.
Bali / Indonesia
The investment case: Bali is a globally recognised lifestyle and tourism destination with a very active short-let market. Property prices are relatively affordable compared to comparable lifestyle destinations. Strong expat and digital nomad demand supports the rental market.
Entry costs: transaction costs depend on the ownership structure used. Leasehold properties sold to foreigners typically involve legal costs and agent fees adding 5–10% to the headline price.
Typical gross yields: 8–15% gross in active short-let management areas (Canggu, Seminyak, Ubud) — but gross figures assume full occupancy which requires good management. Net yields after management fees, maintenance, and voids are significantly lower.
Foreign ownership: foreigners cannot own freehold (Hak Milik) land in Indonesia. Available structures include: leasehold for up to 30 years (Hak Sewa); nominee ownership through an Indonesian national (legally uncertain and risky); foreign-owned company (PT PMA) structure — legal but complex; Hak Pakai (right of use) available to certain foreign nationals married to Indonesian citizens or permanent residents. Any Bali property purchase requires thorough legal due diligence by an Indonesian lawyer experienced in foreign ownership structures.
Currency: Indonesian Rupiah (IDR). Currency risk is present for most international buyers.
Comparing the markets at a glance
| Market | Typical Gross Yield | Foreign Freehold? | Annual Property Tax | CGT on Sale? |
|---|---|---|---|---|
| UK | 3–7% | Yes | No (SDLT on purchase) | Yes — 18/24% |
| UAE (Dubai) | 5–8% | Yes (freehold zones) | No | No |
| Spain | 3–6% | Yes | IBI (modest) | Yes |
| Thailand | 5–8% | Condo only (49% limit) | Low | Yes |
| Cyprus | 4–6% | Yes (restrictions near military zones) | Low | Limited CGT |
| Greece | 4–7% | Yes | ENFIA (varies) | Suspended (verify) |
| Egypt | 6–10% | Designated areas | Varies | Yes |
| Bali | 8–15% gross | No (leasehold only) | Low | Yes |
Figures are illustrative ranges and do not represent guaranteed returns. Always seek local legal and tax advice before purchasing.
Property values can fall as well as rise. Rental yields are not guaranteed. Cross-border property investment involves legal, currency, and tax risks. This article is intended as a general overview and does not constitute personal financial or investment advice. Always engage a qualified local lawyer before purchasing property abroad.
How Global Investments can help
We work with clients across the international property markets covered in this guide and beyond, providing introductions to vetted legal advisers, tax specialists, and local property professionals, alongside integrated financial planning. Contact us to discuss which market best fits your investment objectives.
This article is for general information only and does not constitute financial, legal or tax advice. Rules, prices and regulations change; verify current requirements with a qualified adviser before acting.