The Best Countries in Europe to Invest in Real Estate for High Rental Yields

In recent years, Europe has become an increasingly attractive destination for property investors looking for high rental yields and long-term growth. Whether you're a seasoned investor or just beginning to explore the real estate market, Europe offers a range of options—from stable markets to emerging hotspots.

But which countries offer the best return on investment? In this blog, we’ll look at the top countries in Europe to invest in real estate, especially those offering high rental yields, a strong tenant market, and a favorable legal environment for landlords.

What makes a city the extreme goal for genuine bequest financial specialists? Is it the appeal of cobblestone roads, the murmur of a flourishing showcase, or the guarantee of strong monetary returns?

In 2025, the reply is clear: sharp speculators are chasing cities where postcard-perfect charm meets cold, difficult productivity, with rental yields driving the charge as the characterizing metric.

Related Article: Where to Invest in Europe Real Estate?

Rental yield—simply put—is the yearly rental salary as a rate of the property’s buy cost. It’s the brilliant run the show of how rapidly your venture begins paying you back.

In a showcase where each decimal point things, European cities with tall yields are taking middle organize and demonstrating that magnificence and benefits can go hand in hand.

What Makes a Country a Good Investment?

Before diving into the list, let’s define what makes a country ideal for real estate investment:

• High Rental Yields: This is the percentage of return on your property investment, usually calculated annually. The higher the yield, the better.

• Economic Stability: A strong economy supports stable rental markets.

• Demand for Rentals: Cities with universities, job growth, and tourism tend to have higher rental demand.

• Landlord-Friendly Laws: Legal systems that protect landlords can make a big difference.

• Affordable Entry Point: Countries where property prices are relatively low compared to rental income are often more profitable.

Now, let’s look at the best countries in Europe where you can find all these benefits.

1. Portugal

Average Rental Yield: 5–7%
Why Invest: Portugal has been a rising star in European real estate for the past decade. Lisbon and Porto, in particular, offer great rental yields due to a combination of tourism, digital nomads, and expatriates.

Pros:

• Tax incentives for foreign investors

• Golden Visa program

• Stable political and economic climate

Hot Spots: Lisbon, Porto, Algarve

Portugal also has a high quality of life and a relatively low cost of living, which continues to attract renters and second-home buyers alike.

2. Hungary

Average Rental Yield: 6–9%
Why Invest: Budapest has become a favorite for investors chasing high returns. Property prices are still relatively affordable, and short-term rentals generate solid income thanks to the city’s tourism.

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Pros:

• Low property prices

• High tourist volume

• Growing student and expat population

Hot Spots: Budapest (especially Districts V, VI, and VII)

Hungary’s rental laws are also quite favorable to landlords, making it easier to manage rental income and tenant issues.

3. Romania

Average Rental Yield: 7–10%
Why Invest: Often overlooked, Romania offers some of the best yields in Europe. Bucharest and Cluj-Napoca are leading the charge with growing economies, increased foreign investment, and expanding tech sectors.

Pros:

• Affordable entry point

• Growing economy and tech scene

• Low property taxes

Hot Spots: Bucharest, Cluj-Napoca, Timioara

Romania is especially appealing for investors willing to take a calculated risk in a developing market with high potential.

4. Poland

Average Rental Yield: 5–7%
Why Invest: Poland offers a balanced real estate market with both capital appreciation and decent rental returns. Cities like Warsaw and Krakow are magnets for students, professionals, and digital nomads.

Pros:

• Strong economic growth

• Large student population

• EU member with stable legal structure

Hot Spots: Warsaw, Krakow, Wrocaw

Poland also has a well-established rental market and decent tenant turnover, particularly in university towns.

5. Greece

Average Rental Yield: 4.5–7%
Why Invest: Greece’s real estate market has bounced back after years of economic challenges. With the country’s revival and booming tourism, rental properties—especially short-term—can yield excellent returns.

Pros:

• Property values still recovering

• High tourist inflow

• Attractive Golden Visa program

Hot Spots: Athens, Thessaloniki, Greek Islands

Greece offers a good mix of lifestyle investment and rental income potential, particularly in tourist-heavy regions.

6. Turkey

Average Rental Yield: 6–8%
Why Invest: Although not part of the EU, Turkey is a top option for investors seeking high yields. Cities like Istanbul and Antalya offer vibrant rental markets, especially for short-term tourism rentals. Where Should You Invest? Best Countries In Europe To Invest In Real Estate Right Now

Pros:

• Low property prices

• High demand from tourists and locals

• Citizenship by investment program

Hot Spots: Istanbul, Antalya, Izmir

The Turkish lira’s weakness can work in favor of foreign investors, making properties more affordable while keeping rental income high in comparison.

7. Spain

Average Rental Yield: 4–6%
Why Invest: Spain remains a favorite for international buyers. While yields aren’t the highest, the combination of lifestyle, capital appreciation, and steady demand makes Spain a reliable market.

Pros:

• Strong tourist economy

• Large expat and student population

• Golden Visa for property investment

Hot Spots: Barcelona, Madrid, Valencia

Investors focused on long-term growth and consistent returns will find Spain a worthwhile addition to their portfolios.

Important Considerations Before You Invest

Before jumping into any of these markets, here are a few things to keep in mind:

• Local Regulations: Some countries have strict rules around short-term rentals like Airbnb. Always check zoning laws and registration requirements.

• Currency Risk: Investing outside the eurozone (e.g., Turkey or Romania) may expose you to currency fluctuations.

• Property Management: If you’re buying abroad, consider hiring a local management company to handle tenants and maintenance.

• Taxes: Understand the local property tax system and double taxation treaties with your home country.

Final Thoughts

Europe offers a rich variety of real estate investment opportunities for those looking for high rental yields. Whether you prefer stable economies like Portugal and Poland, or high-risk, high-reward markets like Romania and Turkey, there is something for every type of investor.

The key is to align your investment strategy with your risk appetite, desired yield, and long-term goals. As always, thorough research and local legal guidance are essential steps in the process. So, if you’re looking to grow your wealth through rental income, these countries in Europe could be your next big opportunity.