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18 Jan 2022 / Blog

Top 10 Countries To Invest: Which Are The Best And Most Profitable Countries In The Real Estate?

Written by Fabrice Barra

If we could talk about an investment trend that has remained valid since the beginning of the century, capital diversification would be just it. By allocating resources in several environments, you are guaranteeing the utmost level of asset protection achievable, as you are safeguarding your money from all kinds of circumstances.

If one country collapses, you move your capital to one that hasn’t, and if you already had diversified investments, the overall process becomes easier, cheaper, and smoother. That’s without mentioning how interesting it is to be able to travel the world pursuing the best deals out there.

However, before making any decision, and as it should be done in any investment, the first thing we must clarify is the purpose of the investment. Specifically in the world of international real estate, we may intend to invest looking for different results and, therefore, different strategies and actions.

Once we are clear about the objectives we are pursuing and we have the determination to invest abroad, it will be time to consider which are the best countries to invest in real estate, always under the vision we have outlined.

From the above, it is clear that the best countries to invest in real estate are those that coincide with the characteristics and purposes of the investment. For example, if we want to invest in the area of tourism, the list of countries to evaluate will be completely different from an investment destined for real estate speculation.

That said, let’s review some profitable countries to invest in given some types of investment.

 

INVESTING IN HOUSING

This first scenario contemplates the case in which we wish to acquire a house. When the investment is made from this point of view we can aspire to dispose of it occasionally -considering that it is located in another country- and the rest of the time obtain some income.

When our intention is this, there are considerations that limit in a certain way the geographical points to be evaluated. We will surely be interested in investing in a country conveniently close or with one in which we have some nexus.

Buying a home as an investment requires taking into account the legislation of the country in question, especially in terms of taxation. There are countries such as Saudi Arabia and Australia that have very favorable legislation for foreign investors.

However, it is necessary to make sure that they are not temporary laws that may be the result of the urgent need to attract capital and that may be altered in the near future.

 

SPECULATIVE INVESTMENTS

As you probably suspect, speculative investments are the riskiest, since they seek to obtain extraordinary dividends in a short period of time. This being so, the magnifying glass will focus on countries in crisis where there is a problem that causes the liquidation of real estate for amounts far below their real values.

Of course, the investor is betting that the problems will eventually be overcome to obtain huge profits. That is why the list of countries and best cities to invest in real estate that we should consider may include those that suffer political instability that causes population displacements.

An obvious example is Venezuela, where millions of people have abruptly migrated to other countries, auctioning off their assets -including real estate- for a fraction of their real market value. In the long run, these investors could easily triple their money.

 

INVESTING IN TOURISM

When we talk about tourism, then we can be more precise about the best countries to invest in real estate. Definitely, there are places that attract tourists from all over the world and also take advantage of all year round because of their privileged climates.

This is the case of the Dominican Republic, where important efforts have been made to achieve a serious rebound in tourist services. The resorts located in Punta Cana and Bávaro are destinations that welcome thousands of tourists every year and this makes it one of the most profitable countries to invest in.

The Bahamas is another place where tourism does not stop at any time of the year, which means that 60% of the economic activity of the archipelago is concentrated in this activity. Evaluating projects here would be highly recommended.

Of course, the United States, and in particular the great tourist capitals such as Miami and New York, is another country where investment in tourism can be highly recommended. Its vast geography offers the most varied alternatives for real estate projects of this nature. Its great development in infrastructure guarantees the visit of millions of tourists from all corners of the planet.

As we can see, investing in real estate abroad has its ups and downs. As long as we have clarity of purpose we will know how to locate the best options. The good news is that, accordingly, we will always find the best places to invest.

 

THE 10 BEST COUNTRIES TO INVEST IN

Having said all this, let’s put together in a shaker the investment to buy a house, the speculative investment, and the investments focused on tourism, shake it, and let’s see what results we get. Here is a list in which we find the 10 best countries to invest in real estate, considering all the options we have pointed out.

It’s important to highlight that if you want to acquire a second citizenship, it is better to invest in markets such as Dominica or Saint Kitts, where you can acquire citizenship in a couple of months thanks to citizenship by investment programs.

That being said, let’s see which countries are the best to invest in real estate in both the short run and the long run.

 

SWITZERLAND

Historically, Switzerland has been a country chosen for real estate investments by HNWI, especially for the great stability, security of its market and the much-needed diversification into a currency like the Swiss Franc which is one of the most stable in the world.

It’s important to highlight Swiss real estate market is very narrow and protected, and a foreigner can buy exclusively in tourist resorts, such as in St. Moritz, Gstaad, Zermatt, Lugano, or in commercial or industrial properties.

However, it is possible to acquire different kinds of property. To invest in residential real estate in big cities, such as Zurich or Geneva, you need to have a residence permit in Switzerland.

However, this may not be a problem, since buying a house in Switzerland and opening a Real Estate company is the best way to have a Swiss residence permit. That is without leaving aside the fact that 10 years after acquiring Swiss residency, you will be one step away from Swiss citizenship.

 

TURKEY

Despite being a country that generates a certain feeling of instability, the truth is that its laws are especially protective of foreign investors and it is a paradise of social and cultural diversity, which generates a special charm for tourists and investors.

Of course, the fact that it is the gateway to Europe and Asia makes it gain a lot of ground among the best countries to invest in real estate. And another essential feature: it has an excellent infrastructure that facilitates transportation and is constantly being optimized year after year.

 

GERMANY

The engine of the European Union must be on any list of the best countries to invest in real estate. Germany has it all. Economic growth, legal certainty, political influence, socio-cultural attractiveness, and an excellent geographical location.

But in this case, we have to focus specifically on its capital city. A recent study conducted by PwC and the Urban Land Institute highlighted Berlin as the number one city in Europe among the best cities to invest in real estate. As you can see, Germany has everything to make our investment a successful one.

 

CANADA

Increasingly fashionable as a tourist destination for its diverse and extraordinary landscapes and its quality of life, Canada still has a great real estate potential to exploit thanks to its huge territory, low population rates, and growing interest from abroad.

Its attractiveness for investors is also multiplied by the fact that it has reached very advantageous agreements in recent years with the United States and is, in a way, a physical and economic extension of the powerful businessmen of North America.

 

PANAMA

It may not be one of those places that come to mind when considering profitable countries to invest in. However, its peculiarities make it a sure success for the most seasoned investors.

On the one hand, the Panama Canal, one of the most important trade routes in the world, means that its economy is always active. On the other hand, its extraordinary geographical location, central focus between North and South America, arouses the interest of large real estate investors. Moreover, it is a country that facilitates investments and offers a high degree of security.

 

AUSTRALIA

In any assessment of profitable countries to invest in, we must not only take into account the legal and economic facilities offered by its government, but also its interest for foreigners and the facilities offered by the country for foreigners to settle in it. These last two aspects put Australia in a very prominent position.

Let’s look at the reports. It is among the top 10 countries in Gallup’s Migrant Acceptance Index, plus three of the country’s cities are, according to The Economist Intelligence Unit’s Global Livability Index, among the 10 most liveable in the world. Add to this the fact that the Australian government offers investor and business visas that facilitate a permanent stay, and there is little more to add.

 

URUGUAY

Perhaps the jewel in the crown in Latin America, it is known by investors as “the Switzerland of South America”.

Uruguay is the most stable country in the region, with a consolidated democracy, a secure legal system for investments, and the single best international banks at one’s disposition.

The real estate sector maintains sustainable growth that is solid in the face of unforeseen events.  And of course, some of the greatest places for international tourism like Punta Del Este guarantee high rental income to tourists who come from all over the world.

 

THAILAND

Year after year (with the exception of the coronavirus pandemic) Thailand is in the top 10 of the countries that receive the most tourists in the world. Thai laws offer many advantages to foreign investments, which makes it always appear in the list of profitable countries to invest in the real estate market.

Because of that, investing in huge cosmopolitan cities with more than 10 million citizens like Bangkok, or trusting in tourism-fueled locations like Pattaya, Phuket, or Koh Samui, creates a flow of permanent income that becomes fundamental for the success of a business plan.

 

SINGAPORE

One of the most powerful economies in Asia is also one of the most expensive. The prices of the real estate market do not stop growing, which does not prevent that even today we can assure that it is one of the best countries to invest in real estate. Why? Because its economy is an unstoppable bomb, it has one of the lowest crime rates and it is a top country in the most profitable sectors of the world economy.

This means that the demand for housing is always active and it is easy for those who manage to invest in the real estate market in Singapore to get very interesting profits.

 

SPAIN

The post-COVID market is beginning to revitalize after a very tough year and is finding particular interest in the country’s two major cities and in the luxury market.

According to the recent report The Wealth Report, prime residential prices will grow by around 6% in both Madrid and Barcelona by 2023. This makes them two of the best cities to invest in real estate in Europe.

On top of it, Spain is home to some of the most popular tourist destinations in Europe, of which the Canary and Balearic Islands, Andalusia, and Barcelona attract hundreds of thousands of people ready to consume, enjoy and generate income for you.

 

FINAL ADVICE

If you have the cosmopolitan mindset required to understand the importance of capital diversification, it’s very likely you’ve found at least one country within the list that appeals to you.

Whether it is the financial stability of the Swiss financial sector or the amazing tourist potential of Spain and Uruguay, we’ve covered some of the major options to invest in real estate in 2022.

Nonetheless, as with any investment, it cannot be taken lightly. We highly suggest for you to contact our team of professionals at Centurion Capitalist in order to gain even more perspective on how to make the best out of this movement of capital.

Our experts will study your personal situation, the assets you already have on those you wish to acquire and will provide you with a tailored route towards the best ROI you’ve ever encountered. Take the leap and diversify as only the greatest businessman in the world know how to!

 

Warning: The content of this article does not constitute legal or tax advice. It is provided for general informational purposes only and not for the purpose of offering any warranty or guarantee. As laws change frequently, personalized professional advice is absolutely necessary.

Fabrice Barra
Article written by: Fabrice Barra is a cosmopolitan entrepreneur, lawyer, fiduciary and author, one of the world’s leading experts on offshore strategies, corporate haven, international investments and global mindset lifestyles. He is the personal trusted advisor of well-known entrepreneurs, UHNWI, Forbes Global 2000 companies, professional sportsmen, aristocrats, celebrities, investors, people with a net wealth of 7- to 8- or more figures, and he has access to a network of influential people around the world.

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