Purchasing property abroad today is primarily a financial decision. The numbers matter: entry price, rental yield, taxes, and the pace of market development. Each country has its advantages—Europe offers stability, Dubai offers dynamism, Mexico offers a low entry threshold. However, we focus on hard data. And when we compare the purchase cost with growth potential and year-round tourism, the Dominican Republic very quickly takes the lead.
In Which Country Is It Best to Buy Property Abroad?
There are many countries where it is worth buying property abroad, but only 5 of them stand out from the rest. Spain provides legal stability within the EU and a massive tourism market. Portugal offers security and good resale liquidity. Dubai attracts with zero income tax and dynamic price growth. Mexico has a low entry threshold and a strong American market. However, if we look objectively at the numbers—the price-to-potential-yield ratio, the pace of market development, and accessibility for foreigners—then today we place the Dominican Republic in first place. Below is a data-driven ranking: from fifth place (least profitable investment) to first place (most profitable investment).
5. Mexico – Low Entry Threshold, but Higher Operational Risk
Mexico attracts investors primarily through price. In Tulum or Playa del Carmen, new apartments can be purchased in the range of $120,000-$150,000. The market is heavily driven by tourists from the USA and Canada, which translates into short-term rental yields of 6-9% gross annually.
However, it is important to know that in coastal zones, foreigners purchase property through a fideicomiso (bank trust) structure. This works, but it increases transaction complexity. Additionally, market transparency and security levels are lower than in Europe. Unfortunately, Mexico is known for dangerous gangs and a high crime rate. This is a market with potential, but it requires significant caution and good local support.
4. Portugal – Stable EU Market, but High Entry Threshold
Portugal is a secure EU jurisdiction with developed infrastructure and strong tourism—over 30 million visitors annually. The Algarve region and Lisbon are the most liquid markets when it comes to property resale.
However, prices are already high. In Lisbon, we are talking about €4,000-€6,000 per m², in the Algarve €3,500-€5,000 per m². Rental yields typically fall within the range of 4-6% gross annually. This is a stable market, but it is difficult to speak of significant price growth potential today as there was a few years ago. The investment is relatively safe, but less dynamic.
3. Spain – Classic Investment in Holiday Properties
Spain is one of the strongest tourism markets in Europe—over 85 million tourists annually. Costa del Sol, Costa Blanca, and the Canary Islands are locations with extensive experience in short-term rentals.
Prices vary. In Alicante, offers can be found from approximately €2,000 per m², while on Costa del Sol the standard is €3,000-€5,500 per m². Rental yields typically amount to 5-7% gross. However, increasingly frequent regulations limiting tourist rentals in major cities and strong competition from foreign investors are becoming problematic.
2. Dubai – High Dynamics and No Income Tax
Dubai is a cyclical market, but in recent years it has shown very strong growth. Between 2021 and 2024, prices in selected locations increased by 30-50%. The absence of personal income tax is a significant argument for many investors.
However, the capital entry requirement is higher. An apartment in Dubai Marina or Downtown is an expense in the range of $350,000-$400,000 and more. Average rental yield is 6-8% gross. This is a dynamic, well-organized market, but heavily dependent on global economic conditions and foreign capital inflows.
1. Dominican Republic – Best Price-to-Potential Ratio
We place the Dominican Republic in first place, primarily due to the ratio of entry price to potential yield and growth dynamics. The country’s economy grows at an average of 4-5% annually, which is one of the best results in the region. Tourism has exceeded 10 million visitors annually, and the season lasts practically all year.
Property purchase by foreigners is not restricted by special barriers. In Punta Cana, new apartments in resort projects start from $120,000-$180,000. The premium beachfront segment ranges from $250,000-$500,000. Actual short-term rental yields in well-selected projects amount to 7-10% gross annually, and in top locations are even higher.
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Other Countries You May Consider
If the above markets do not suit you for some reason—budget, lifestyle, tax strategy—you may also consider other destinations. However, we honestly warn you: these are less predictable markets, with lower yields or greater legal and currency risk. This does not mean you cannot profit there—it is simply easier to make a financial mistake.
- Italy – advantage: massive tourism market and recognizable locations (Tuscany, Sicily); disadvantage: low rental yields in many regions (often 3-5%) and complicated bureaucracy.
- Greece – advantage: relatively low entry prices on islands outside top locations; disadvantage: tourism seasonality and yields typically 4-6%.
- Turkey – advantage: low property prices in EUR/USD terms; disadvantage: high inflation and currency risk (lira).
- Montenegro – advantage: growing tourism popularity and no euro currency risk (settlements in EUR); disadvantage: small market and limited resale liquidity.
- Albania – advantage: very low entry threshold (in some locations from approximately €1,200-€1,800/m²); disadvantage: still developing legal system and limited infrastructure.
- Thailand – advantage: strong Asian tourism market and popularity among expats; disadvantage: ownership restrictions for foreigners (no full land ownership).
- Brazil – advantage: large domestic market and attractive prices in resorts; disadvantage: high economic volatility and complicated tax system.
- USA (Florida) – advantage: massive, liquid market and strong legal protection; disadvantage: high entry threshold (often $300,000-$500,000) and high maintenance costs and local taxes.
- Northern Cyprus – advantage: low prices compared to the southern part of the island; disadvantage: unresolved international status and elevated legal risk.
- Colombia – advantage: growing tourism sector and relatively low property prices; disadvantage: political volatility and higher operational risk than in Europe or the Caribbean.
Each of these markets has its own specifics. If you are considering any of them, the most important thing is to thoroughly verify local regulations, maintenance costs, taxes, and actual (not declared) rental yields. In our practice, we see that many people start with unconventional countries, but ultimately choose a market where law, tourism, and demand are most predictable—namely the Dominican Republic.
What Are the Costs of Purchasing and Maintaining Property Abroad?
Costs are something that very often determines whether an investment actually “earns” or just looks good in photos. The purchase price itself is one thing, but equally important are taxes, notary fees, administrative costs, property maintenance, and rental taxes.
Mexico – when purchasing, you must account for transaction costs at approximately 4-7% of the property value (notary, registry, local taxes). In coastal zones, the cost of fideicomiso, or bank trust, is added—this is an additional approximately $500-$1,000 annually. Property tax is low (often below 0.1% of value annually), but with rentals you must account for local income taxes and operator commission if using management services.
Portugal – here entry costs are significantly higher. The purchase tax (IMT) can range from a few percent to approximately 8% depending on the property value. Add to this the notary and registry—in total realistically 7-10% transaction costs. Annual property tax (IMI) is typically 0.3-0.8% of value. If renting, the income tax on rental income for non-residents is 28%. This is a stable system, but fiscally quite demanding.
Spain – on the secondary market, the purchase tax (ITP) is typically 6-10% depending on the region. On the primary market, VAT is 10% plus notary fees. Total entry costs often fall within the range of 10-13%. Annual property tax (IBI) is relatively low, but rental income tax is added and—in the case of non-residents—an imputed income tax even without rental activity. Community maintenance costs in resorts are often €1,000-€2,500 annually.
Dubai – the absence of personal income tax is a major advantage. When purchasing, however, a 4% transfer fee is paid to Dubai Land Department along with administrative and registration fees. Total entry costs are typically approximately 6-7%. There is no classic property tax, but there are annual service charges, which in premium buildings can amount to several thousand USD annually. With short-term rentals, operator or management costs are added.
Dominican Republic – purchase costs are relatively straightforward. The transfer tax is 3% of the property value. Additional legal and notary costs depend on the law firm, but typically amount to a few percent. Annual property tax (IPI) applies only after exceeding a certain value threshold—below this threshold there is no annual tax. With rentals, income tax is paid, but with a well-planned structure and accounting support, it can be optimized in accordance with local law. Maintenance costs in resort projects are predictable and often lower than in comparable European locations.
Read About Our Property Rental Management Service in the Dominican Republic
Europe provides predictability, but has the highest entry costs and tax burdens on rentals. Dubai is tax-advantageous, but requires greater starting capital and generates high service charges. Mexico is cheaper to maintain, but more legally complex. The Dominican Republic, however, stands out with a simple tax structure, moderate transaction costs, and no excessive barriers for foreign investors. In terms of cost-to-profit potential, it is currently the most rational option of all five.
What Does the Process of Purchasing Property Abroad Look Like?
The purchase procedure differs depending on the country, but in practice always includes the same stages: reservation, preliminary agreement, legal verification, final notarial deed, and ownership registration. Differences appear in the level of formality, legal protection for the buyer, and the duration of the entire process.
Mexico – the process begins with a reservation agreement and deposit payment. In coastal zones, a foreigner does not acquire property directly, but through fideicomiso—a bank trust. The bank is formally the owner, and the buyer is the beneficiary with full rights of use and sale. The transaction is finalized by a notary (notario público), who has significantly greater authority than in Europe. The entire process typically takes 1-3 months, but requires thorough verification of the title and development project.
Portugal – the procedure is transparent and highly formalized. First, a preliminary agreement is signed (Contrato de Promessa de Compra e Venda) with a deposit payment, often 10-20%. Then the buyer obtains a tax number (NIF), if they do not already have one. The final deed is signed before a notary, and ownership is registered in the land registry. The entire process typically takes 1-2 months. The system is stable, but formalities and taxes often create obstacles.
Spain – in Spain, the standard is a reservation agreement, followed by a preliminary agreement (Contrato de Arras) with a deposit of approximately 10%. The buyer must obtain a NIE number (Número de Identidad de Extranjero). Finalization takes place before a notary, who confirms the identity of the parties and documents, but does not conduct full due diligence—that is the lawyer’s role. Registration in the property registry occurs after signing the deed. The entire process typically concludes in 4-8 weeks.
Dubai – the process is fast and highly digitized. After reservation and deposit payment, an agreement is signed (MOU – Memorandum of Understanding). Then the transaction is registered with Dubai Land Department. The buyer receives a title deed (Title Deed). In the case of the primary market, payments are often made in installments according to the construction schedule. The procedure can take just a few weeks. The system is transparent, but it is important to verify the developer and project.
Dominican Republic – the process is very simple and foreigner-friendly. First, we sign a reservation agreement and pay a deposit (often $5,000-$10,000 depending on the project). Then a law firm conducts title verification (due diligence)—the property registry, encumbrances, and document compliance are checked. The final sales agreement is signed and registered with the appropriate office. In development projects, payments are spread across construction stages, which allows entry into the investment with lower initial capital. The entire process takes from a few weeks (secondary market) to a few months (primary market). Importantly—a foreigner has full ownership rights, without trust structures or restrictions typical of some countries.
We Assist with All Formalities When Purchasing Property in the Dominican Republic
Europe provides familiar legal frameworks, Dubai offers speed and digitization, Mexico requires greater legal attention, and the Dominican Republic combines a simple procedure with full ownership rights for foreign investors. From our experience, the simpler the system and the fewer intermediary legal structures, the lower the operational risk and the faster the return on investment.
Why Do Investors Choose the Caribbean as an Alternative to Europe?
Because Europe is now a mature (even saturated) market, and the Caribbean is a growth market. And that is the fundamental difference.
In Spain or Portugal, prices are already high, and growth dynamics in recent years have slowed. Rental yields in top locations typically fall within the range of 4-6% gross. Add to this growing regulations on short-term rentals, higher taxes, and increasing competition from foreign investors.
The Caribbean, and especially the Dominican Republic, are at a different stage of the cycle. Tourism exceeds 10 million visitors annually and is growing. The season lasts practically 12 months—there are no 4-5 dead months as in southern Europe. The economy records GDP growth at 4-5% annually, which translates into infrastructure development, new airports, roads, and resort projects.
The second issue is the entry threshold. In Europe, for €150,000-€200,000 we often buy a small apartment in the second line of development. In the Dominican Republic, with a similar budget, we can enter a new apartment in a resort project, often with a pool, security, and tourism facilities. This directly impacts rental attractiveness and actual return rates of 7-10% gross with good management.
The third matter is the tax structure and absence of excessive restrictions for foreigners. In many European countries, rental regulations are being tightened. In the Caribbean—especially in the Dominican Republic—the system is simple, and ownership is full and without trust structures.
From our perspective, the Caribbean is not an “exotic indulgence,” but a rational portfolio diversification. Europe is security and stability. The Caribbean is growth, year-round tourism, and still attractive entry prices. That is why more and more investors who already own property in the EU are starting to look for a second market—a more dynamic one. And it is precisely here that the Dominican Republic wins over alternatives.
