Fewo-Vermieter Investment Tips

15 of Europe’s Top Cities for Investment in Property

Some of the best places to invest in Europe. Data courtesy of Global Property Guide:

 

Paris, France. Pros: Low rental costs, high yields in Paris, Global political powerhouse. Cons: pro-tenant rental market, moderate-to-high transaction costs.
Helsinki, Finland. Pros: low to moderate transaction costs, strong economy, moderate yields, tenant-neutral rental market. Cons: high rental income tax.
Prague, Czech Republic. Pros: pro-landlord rental market. Moderate yields, low transaction costs. Cons: moderate to high rental income tax. Aliens can’t buy land directly.
Brussels, Belgium. Pros: strong rental demand. Cons: moderate to high transaction costs, tiresome tenancy length limits, moderate to high taxes.
Vienna, Austria. Pros: stable political system, moderate transaction costs, moderate yields for new units. Cons: complicated pro-tenant system, moderate to high rental income taxes.
Ljubljana, Slovenia. Pros: Pro-landlord rental market, low transaction costs, strong post-transition economy. Cons: low to moderate yields in Ljublana, high rental income tax, minor issues with ownership.
Bucharest, Romania. Pros: low transaction costs, strong post-transition economy. Cons: low to moderate rental yields, high rental income tax, strong pro-tenant sentiments.
Warsaw, Poland. Pros: low transaction costs, strong post-transition economy. Cons: low to moderate rental yields, high rental income tax, strong pro-tenant sentiments.
Riga, Latvia. Pros: pro-landlord rental market, low effective rental income tax rates, low transaction costs, high GDP growth, recent correction in housing market has restored value. Cons: low to moderate yields, minor ownership restrictions on land.
Rome, Italy. Pros: Europe’s historical centre, strong tourist rental market. Cons: strongly pro-tenant laws, high round-trip transaction costs, high income taxes.
Zagreb, Croatia. Pros: Strong tourist rental market, moderate taxes. Cons: multiple foreign ownership limits, moderate to high transaction costs, vulnerable and unstable economy.
Istanbul,Turkey. Pros: Moderate costs, moderate to high yields, rapid economic growth, low-to moderate transaction costs. Cons: pro-tenant rental market, moderate to high income taxes.
 Amsterdam, Netherlands. Pros: moderate yields in Amsterdam, strong economy, moderate transaction costs, moderate rental income taxes. Cons: pro-tenant rental market.
Skopje, Macedonia. Pros: high yields, pro-landlord rental market, low transaction costs, moderate income taxes. Cons: serious ownership restrictions, political and security concerns.

Hungary, Budapest.  Pros: Good yields, low to moderate transaction costs, pro-landlord law. Cons: minor ownership restrictions, moderate to high rental income taxes.