American investors allocated over $58 billion to European real estate last year, representing a 23% increase in buyers seeking investments abroad instead of a cooling domestic market. A recent study conducted by The Forex Complex analyzed the real estate market in 75 countries to rank the ones with the highest returns on property investment for USD holders.
The analysis compared countries across key real estate factors: price per square meter in USD, 10-year real estate price changes, projected property price, average buying and selling costs, and property tax. Based on these factors, capital gains and profits were calculated, ranking countries by highest net profits.
Here’s a look at the top 10 countries with the highest property investment returns:
| Country | Price per sqm (USD) | 10-Year Price Change (%) | New price per sqm (in 10 years, USD) | Total Costs per sqm (USD) | Capital Gains Tax Average per sqm (USD) | Profit per Average Dwelling (USD) |
| Portugal | 6.7K | 138.43% | 15.9K | 1.5K | 1.5K | 431.0K |
| Netherlands | 9.8K | 65.86% | 16.2K | 1.4K | 904 | 288.4K |
| Israel | 14.8K | 47.78% | 21.9K | 2.0K | 1.3K | 266.4K |
| Ireland | 8.7K | 61.76% | 14.0K | 618 | 1.6K | 222.4K |
| Iceland | 6.1K | 74.11% | 10.5K | 859 | 798 | 198.1K |
| Czech Republic | 6.5K | 54.80% | 10.1K | 340 | 616 | 183.9K |
| Slovenia | 5.3K | 65.31% | 8.7K | 615 | 353 | 172.9K |
| Slovakia | 4.1K | 48.63% | 6.1K | 335 | 206 | 101.0K |
| Hungary | 3.5K | 75.61% | 6.2K | 1.1K | 237 | 94.2K |
| Croatia | 3.4K | 52.71% | 5.2K | 292 | 181 | 92.8K |
The country with the highest return on investment in property is Portugal, giving 431K USD in profits. Portugal saw the highest rise in real estate prices, which increased by 138% in the last 10 years. Right now, people can buy properties with 6.7K USD cost per square meter, while they are projected to cost 15.9K USD after a decade. This growth offers the highest potential for investment in real estate, coupled with a low property tax rate of 0.55%.
The Netherlands ranks 2nd among the best countries for property investment, giving 288.4K USD in profits. The real estate market in the Netherlands is the second most expensive on the list, with properties costing 9.8K USD per square meter. The prices grew by 68% in the last 10 years, and after another decade, they’re projected to be at 16.2K USD, higher than in Portugal.
Israel takes third place, adding 266.4K USD in profits. The country has the most expensive real estate on the list, costing 14.8K USD per square meter, over 2 times more than in Portugal. High costs also mean high returns here, with a 3.8K USD profit per square meter.
Ireland follows closely in fourth place, with 222.4K USD in investment returns. The real estate cost growth here is similar to the Netherlands, at 61%, and in 10 years, prices are expected to grow from the current 8.7K USD to 14K USD. Ireland also has one of the lowest property taxes at 0.22%, creating a path for easier investments in property.
Iceland is fifth on the list of countries with the highest returns of real estate investment, with 198.1K USD. The property is easier to buy here with lower prices at 6.1K USD per square meter, but the market is growing fast. The prices increased by 74% in the last 10 years, and the same properties are expected to cost 10.5K USD per square meter after a decade.
In sixth place is the Czech Republic, with 183.9K USD in investment returns. The country is one of 2 in the top 10 that offer 0% property tax, and it is coupled with no additional real estate selling costs. Currently, the properties go for 6.5K USD per square meter, a little cheaper than Portugal, but are expected to cost $10.1K in a decade.
Slovenia holds seventh position, showing 172.9K USD in investment returns. The real estate price increase here is very similar to the Netherlands, with 65% growth, but the prices are much more affordable (5.3K USD per square meter), allowing for a less complicated path for property investors. The capital gain tax in Slovenia is also the second lowest in the list at 12.5%, with investors spending only $353 per square meter.
Slovakia takes eighth place, with 101K USD gained by property investment. Similar to Slovenia, the capital tax gain is low at 12.5%, but the property taxes are even lower, with 0.25%. Another affordable option on the top 10, Slovakia’s real estate market is currently at 4.1K USD per square meter, but the prices grow steadily with a 48% increase in the last decade.
Hungary is ninth, giving investors 92.4K USD back. The real estate price growth here is the second fastest at 75.6%, staying behind only Portugal. While houses can be bought for 3.5K USD per square meter now, they are expected to cost 6.2K USD in the next decade.
Croatia rounds up the top 10 countries with the highest returns on property investment, with 92.8K USD. The country offers the cheapest real estate in the top 10, with only 3.4K USD per square meter, as well as stable price growth of 52%. After another decade, the properties in Croatia are estimated to cost 5.2K USD.
A spokesperson from The Forex Complex commented on the study: “Smart property investors are discovering that Europe’s emerging markets offer great opportunities beyond the typical major capitals, where high entry costs and saturated markets limit potential returns. Countries offering tax advantages and lower acquisition costs create attractive environments for both first-time international buyers and seasoned portfolio builders looking to diversify their holdings. The combination of affordable entry points and strong growth in these markets often outperforms expensive gateway cities where price appreciation has already peaked.”