Where to buy for rental income: countries compared

Every country page quotes a rental yield, and the numbers are rarely comparable. This article puts about a dozen markets side by side on rental economics only, using the figures already published in our own dated guides (October 2026), starting with rental yield by country 2026. It is not a ranking of where to buy, and no return is guaranteed. Yields below are gross unless stated, and most come from aggregators, brokers and portals rather than official statistics.

How to compare: gross, net and what the number hides

• Gross yield is annual rent divided by the price. Net is what is left after service charges, management, vacancy, local property tax, income tax and repairs. In our guides net is typically 1.5 to 2 points below gross, and more for holiday lets.
• A yield in a weak currency is not a yield in euro. This matters most in Turkey.
• A holiday-let yield depends on a licence and a season that can change. Check short-term vs long-term rental.
• Your home country may tax the rent too: see rental income abroad: tax for EU residents by country.

Higher headline yield: Georgia, Turkey, Armenia

Georgia shows about 7-8% gross in 2026, but Batumi is drifting towards 7% gross and 2-4% net; short-term demand and guaranteed-rent offers drive the headline (Georgia yield). Turkey shows roughly 6-8% gross in lira and about 4-5% net in lira. The euro cost about 48.7 lira in October 2025 and about 53.8 in mid-July 2026, so a part of the yield is lost to the exchange rate; long-term leases can be raised only up to the twelve-month average inflation rate (Turkey yield). Armenia is quoted at about 6-8% gross, but from agent and law-firm estimates, not official data (Armenia guide).

The Gulf: Dubai and Saudi Arabia

Dubai prime apartments show about 5-6% gross and mid-market 7-9%, net roughly 2 points lower. Cushman and Wakefield recorded city-wide prices down about 4% in the second quarter of 2026 with more supply due, and holiday lets need a licence (Dubai yield). There is no personal income tax in the UAE, but your home country may still tax the rent. Saudi Arabia shows headline gross of 6-9% and net usually 3-5%, with Riyadh rents frozen until 2030 (Saudi yield). For Oman we give no number here; see Oman rental yield, realistic.

Southern Europe: Spain, Italy, Portugal, Greece, Cyprus

Spain averages about 6.5% gross, but Madrid is near 4.7% and Alicante near 7.8%; a realistic net is 2-4%. In May 2026 the Supreme Court annulled the national registration-number rule for tourist lets, but regions can still require their own licence (Spain yield). Italy averages about 6.6% gross, Milan 3.5-5%, and a net of 3-4% is a sensible planning figure (Italy yield). Portugal gives about 4-5% gross in big cities, but a Lisbon flat nets nearer 2-3%, and local-accommodation licences are among the most regulated in Europe, with Lisbon containment rules from December 2025 (Portugal yield). Greece averages about 4.4% gross, small Athens flats 6-8%, islands far lower; national short-let occupancy is reported near 41% in 2026, and new short-let registrations are frozen in central Athens (Greece yield). Cyprus shows about 4.5-5.9% gross depending on city and flat size, net 1.5-2 points lower (Cyprus yield).

Adriatic and Black Sea: Montenegro and Bulgaria

Montenegro shows about 4-5% gross and a realistic net of 3-4% (Montenegro yield). Bulgaria is about 4.2% gross on average: Sofia near 4.2%, Burgas about 5.1-5.3%. One broker quotes 6.2-6.8% net for resort flats, but that assumes a fuller season than most owners get; the zone next to the Bansko gondola is reported at about 35% occupancy. Rent is taxed at a flat 10%, withheld at source for non-residents (Bulgaria yield).

Seasonality and regulation risk side by side

• Strong seasons, thin winters: Greek islands, Bulgarian resorts, Montenegrin coast, Algarve. Count the months you can really let.
• Year-round demand: Madrid, Milan, Lisbon, Sofia, Istanbul, Dubai. Yields are often lower, vacancy more predictable.
• Tighter holiday-let rules: Lisbon, central Athens, parts of Spain, and EU-wide listing registration numbers from 20 May 2026. A plan that works only as a short let is the most fragile.
• Rent control or caps: Turkey (inflation-linked cap) and Riyadh (freeze to 2030). Check any cap before you rely on rent growth.

Who should choose which

• If you want income in a hard currency with limited regulation risk, look at the mid-range euro markets (Italy outside Milan, Spain's coastal and secondary cities, Sofia and Burgas) and accept a net of about 3-4%.
• If you accept currency and rules risk for a higher headline, look at Georgia or Turkey, and model net in euro, not in lira or lari.
• If you want a tax-light jurisdiction and accept price cycles, Dubai fits, with the 2026 supply and price softening in mind.
• If you want a second home that you also use, the seasonal markets (Greek islands, Montenegro, Cyprus) fit, with a lower yield accepted.
• If a holiday-let plan is the whole case, check licence rules first; if it fails, would a long let still make sense?

FAQ

Which country has the highest rental yield? On headline gross figures Georgia, Turkey, Saudi Arabia and Armenia, but each carries currency, regulation or data risk. Is net 3-4% good? In stable EU markets it is a normal outcome. Can I compare these numbers directly? Only roughly, because sources, dates and definitions differ. Do I pay tax in two countries? Possibly; the treaty method decides, so ask an adviser.

Sources worth opening: the Dubai Land Department for Dubai rules and the Spanish INE for Spanish price indices.

How we help

We are a trilingual platform that finds properties and coordinates independent local lawyers and tax advisers. We shortlist markets to your goal and model net numbers on your assumptions. This text is informational and is not legal, tax or investment advice; verify current rules and figures before you buy.