Who amongst us has not dreamed of buying property in Europe? From its beautiful beaches to its deep culture and heritage, it is a continent that people in America and beyond dream of visiting for a myriad reasons.
This touristic pull is exactly what makes buying a vacation home in Europe not just a lovely idea for your summers, but also an exciting avenue towards starting or expanding a short-term rental business.
But with so many amazing options at your disposal, how can anyone chose?
Not to worry. In this article, we will go through exactly what questions you should be asking yourself when deciding where to buy a vacation home in Europe before sharing with you some of our top picks for the sake of investment and enjoyment alike.
What should you consider when buying a second home in Europe?
The first question you should ask yourself is…
“Why am I buying a second home?”
This may sound like a silly question but, before making any big decisions, you need to be absolutely sure of what you want out of this purchase. Are you buying a second home to have a place in which to spend your holidays? Is your new home purely an investment that you do not plan to live in? Is it a mix of both? Or are you buying if for some other purpose, such as obtaining citizenship in a new country?
There are many, many reasons why someone might be looking to buy a second home in Europe, and each of those reasons carry a unique set of considerations.
For example, if you are buying a vacation home, you might care more about the weather of the area in which you buy your property, as it will have a much greater impact on your life than on the life of someone who is buying a home only for the purposes of investment.
So, if you haven’t already, stop for a moment and take some time to consider exactly what you want from your second home. And if you’re wondering where to invest, here’s some inspiration for you: Top 10 places to buy a vacation home in the world.
What should you consider when buying a second home in Europe for investment purposes?
Let’s focus on the financial side of things first. Of course, whether you plan to live in your new property or not, there is no denying that buying property in Europe can be a fantastic investment opportunity.
Whether you want to lease it as a long term rental (LTR) or put it up on the market as a short term rental (STR) or mid-term rental (MTR) while you are away, second homes can yield very impressive profits in Europe.
Just last month (April 2025) saw a 27.4% rise in STR demand across Europe as reported by AirDNA, who believe this boost in demand will carry through into the summer.
So, what criteria should you have in place to determine where to buy your investment property?
Laws and regulations
Before you think about buying a new property, make doubly sure you have investigated laws and regulations around both foreign property investment in your country of interest and STR regulations both nationwide and within the area in which you are planning to make your purchase.
Property and rental laws can vary wildly from country to country in Europe. For instance, countries like Italy have laws that regulate STRs throughout the entire country, while Germany’s regulation focus mostly on certain municipalities.
Some cities, like Athens, also count with specific restrictions in addition to those that are operational throughout the rest of Greece.
While encountering regulations that might make a venture less profitable can be frustrating, one must remember that these rules are often there for a reason.
As reports show, over-tourism and housing shortages are very real issues that can greatly affect the communities that property managers serve.
If these communities suffer, this can also be bad for business, as it often means that places lose that “local charm” that many travelers seek out. Property laws and regulations are a way to make sure that these wonderful communities are able to thrive and develop a STR ecosystem that grows steadily and sustainably.
Market behavior and demand
Not all markets are created equal, and it is your job to discover which might work best for your business, and which will not. For example, Monoestate reports that short term rentals thrive in high-tourism areas such as Spain and France, while the technology-driven economies in Ireland and the Netherlands produce high rental yields in the long term.
If you are planning on living in your property during specific times of the year only, you should also take your market’s seasonality into account.
For example, if you are only planning on staying at your property during the summer months, a college town like Oxford, England might be a good option for you. In this example, you would be able to rent out the property during term time to offset costs, and then enjoy it yourself when all the students have gone home for the holidays.
Estimated return on investment
At the end of the day, investing is all about risk – but that doesn’t mean you can’t try to guess what your profits will be at the end of the day.
By calculating your return on investment, or ROI, you will be able to get a better idea of what your final earnings might look like before jumping head-first into a purchase.
To calculate your ROI, you should start by noting down what your overhead costs would be. This includes the property, any software you will use to manage it, potential cleaning expenses, taxes – anything you can think of that will cost you money.
After that, it is time to make an educated guess about your expected earnings. Lodgify recommends doing this by looking for similar properties on listing sites and noting down their average price per night.
You can then factor in your property’s estimated occupancy rate to generate the (approximate) raw income your property would generate. After doing this, just subtract your overhead costs from your expected earnings to generate an estimated ROI.
This will help you decide whether the investment is just right, or whether you should consider other options. Wondering where to invest? Here’s some inspiration for you: Top 10 places to buy a vacation home in the world.
What should you consider when buying a second home in Europe for vacation?
Now that we have covered the financial bits and pieces, let’s consider something appropriately more relaxing: the beach of the mountains?
When it comes to buying a vacation home, you need to consider where you would feel most comfortable living, what places in Europe will make you happy just by virtue of being there. You should also remember that this is a place where you will stay for weeks or months at a time, so there are key considerations to be made in regards to the infrastructure that will make up your location of choice.
To help you narrow down your ideal European holiday spot, here are a few considerations you may want to keep in mind when making your decision.
Climate
The kind of life you want to lead during your vacation time should be an important factor to consider when picking out your ideal holiday home. Take the country’s climate into consideration, for example. It is arid or humid? What’s the temperature like throughout the year? Think about what kind of weather conditions make you feel most comfortable, and try to prioritize those.
Activities
How do you like to spend your free time? Are you happiest reading a book by the sea? Out in a bustling city? Hiking in the green countryside? Researching what kinds of activities are popular in your area of interest will help you decide whether it will be a good place for you to spend your holidays, or whether it will soon become an overly expensive bore.
Language
If you are not already familiar with the language spoken in your European country of choice, it is always a good idea to try to learn at least enough to get by. However, if the thought of doing this sounds like a horrible chore, then you might want to consider countries where a large percentage of the population speaks English already. The United Kingdom and Ireland are obvious choices in this regard, but countries like Germany and the Netherlands also have a high percentage of the population who speak English already.
Culture
Before you move to a completely new place, it is very worthwhile to research its culture and customs, as these might be very different to those in your country of origin.
Knowing just a little bit about your new home’s way of doing things can help alleviate feelings of culture shock, and can also help you demonstrate to your new community that you value their way of life and are happy to integrate yourself into their neighborhood in a friendly and respectful way.
Healthcare and infrastructure
Remember: holiday homes are places where you will spend weeks, if not months of your life. For this reason, you should make sure that you will be able to access a robust healthcare system in your country of choice.
You should also investigate the state of the country’s infrastructure. Making sure that its roads are well-kept and that there is public transport available will make your life a lot easier when trying to get around safely in your new home.
What are the best countries to buy a second home in Europe?
The answer to this question will depend on what you want from a second home in Europe as both an investment opportunity and a place to spend your holidays.
The list below tries to marry the two, highlighting locations that are both great vacation spots and fantastic places to invest.
Country |
Attractions |
Investment Opportunities |
Potential Drawbacks |
| France | Alps, Provence, Paris, culture, food, beauty | Economic and political stability, strong rental market | New regulations on STRs in certain markets |
| Greece | Beaches, cultural heritage, islands | High rental demand on islands like Crete, Zakynthos, Kos, Cyclades, and Corfu | New regulations on STRs (focused on safety and affordable housing) |
| Ireland | Countryside, Dublin (culture, art, beer), friendly locals | Rising real estate prices, no restrictions on foreign buyers/renters | Housing crisis, smaller pool of properties, potential local discontent |
| Malta | Beaches, temples, Valletta (UNESCO), infrastructure, health system, safety | Special Designated Areas (SDAs) with no restrictions, economic growth, rising rent prices, path to citizenship | Economic growth is needed to maintain |
| Spain | Beaches, sunny weather, Madrid, Barcelona, Seville, Valencia, low cost of living | “Golden Visa” for investments over €500,000, high STR demand | Slow property purchasing process, housing crisis in major cities |
| Germany | Healthcare, transportation, Berlin, Munich, culture, food | Economic and political stability, limited new housing projects (potential for high demand) | Municipal STR regulations to address housing shortages |
| Itally | Coastline, food, diverse ecosystems, Rome, Florence, Venice, culture | High tourist demand, safe STR investment | Evolving rental regulations, tax on rental income, requirement to greet guests in person |
| United Kingdom | London, Oxfordshire countryside, Cotswolds seaside, safety | Strong economic stability, rising housing prices in cities and vacation spots | Less sunny weather, taxes on rental income, restrictions and registration requirements on STRs, particularly in London |
France
Regions like the Alps, Provence, and Paris have long been at the top of both STR investment and holiday destination lists.
Whether it is beautiful mountain views or the hustle and bustle of the big city, France is a country bursting at the seams with beauty, culture and, of course, some of the most delicious food the world over.
In terms of investment, Investropa points out that, while France does not tend to produce the strongest rental yields in Europe, its remarkable economic and political stability make it a great country to invest in as a whole.
However, before deciding on a property, it is worth revising France’s state and local laws regarding STRs, as France has recently imposed new regulations on certain rental markets across the country.
Greece
From quaint villages to turquoise beaches, Greece is a great location for a vacation home if what you want is a relaxing seaside get-away.
Add to that the country’s impressive cultural heritage, and you’ve got yourself a holiday destination that you can explore endlessly, visiting ancient Greek ruins one day, then enjoying a cold drink by the beach the next.
Greece’s islands also seem to be ripe with investment opportunities.
When Lodgify analyzed the best European rental markets in 2024, half of their top ten results were islands in Greece: Crete, Zakynthos, Kos, Cyclades, and Corfu in that order.
While Greece has recently introduced new regulations on STRs, these are not overly punishing, and are mostly focused on making rentals safer for guests and addressing local needs for affordable housing.
Ireland
Ireland has long been a fantastic holiday destination for countryside lovers; the grass is indeed greener in the Emerald Isle.
Plus, if you need a bit more action in your life, fear not: Dublin is a remarkably friendly metropolitan hub with a number of great museums, a bustling art scene and, of course, some of the world’s finest beer.
There are no restrictions on foreigners when it comes to buying, selling, and renting out property in Ireland, making it ideal for property managers who work remotely.
Immigrant Invest also highlights Ireland’s impressive 1.7% growth in residential real estate prices ever quarter: while a 100m² apartment would have cost you €273,000 seven years ago, today that same apartment would be sold for €440,000.
Euro News highlights the housing crisis Ireland is currently undergoing as a reason why prices have climbed so steeply over the last few years. As an investor, this means you may be faced with a smaller pool of properties to pick from, alongside growing discontent from locals.
Malta
One of Europe’s best kept secrets, Malta is a gem in the Mediterranean. It boasts beautiful azure beaches, ancient temples, and Valletta, the country’s UNESCO-listed capital.
On top of that, Malta counts with strong infrastructure, a public health system, and a safe environment, all alongside a delicious (and healthy!) Mediterranean diet.
Malta is also particularly friendly to investors. It counts with several “Special Designated Areas” (SDAs) where foreigners can purchase and rent out properties without restrictions.
Because the country is experiencing economic growth and climbing rent prices, these properties are expected to accrue value year after year, meaning they can be rented out for some time and then sold for a significant profit.
As a cherry on top, buying property in Malta can be a path towards obtaining citizenship in the country.
Spain
Yet another Mediterranean treasure, Spain is widely known for its golden beaches and sunny weather. It also counts with important artistic and cultural hubs in the form of Madrid, Barcelona, Seville, and Valencia.
Add to that a relatively low cost of living, free healthcare, and a ample public transport, and you have yourself a contender for a prime holiday home location.
In financial terms, Spain is quite friendly to foreign home-buyers and investors, and even offers a “Golden Visa” route to residency (and eventual citizenship) to those who purchase properties costing €500,000 or more.
That being said, property purchasing process can be somewhat slow, and many bigger cities, like Madrid and Barcelona, are suffering from the effects of a housing crisis.
This can make getting into this rental market all the more difficult. But if you do: great! Demand for STRs is always high in Spain, a “holiday country” for many.
Germany
Right in the heart of Europe, Germany is a great choice for any vacationers looking for a remarkably stable and vibrant place to live.
With its excellent healthcare system and transportation networks, life in Germany is amongst the most comfortable in Europe.
Add to that the amazing cultural hubs in cities like Berlin and Munich, as well as its traditional hearty food and drink, and you’ve got yourself a fantastic holiday spot for many years to come.
Germany’s economic and political stability also make it a great place in which to invest in property. According to Investropa, Germany is not currently approving many housing projects, which means it might be a good time to invest in property now and capitalize when the housing market’s supply is not able to meet demand.
To sweeten the deal even more, regulations for STRs are largely municipal in order to tackle housing shortages in certain areas of the country, which means you will be able to pick out the best area for you and your business needs.
Italy
From its beautiful coastline to its amazing food, what is not to love about Italy?
Not only does it count with an impressively diverse ecosystem and some of the most beautiful cities and villages in the world, but it is also a hub for culture and the arts, boasting cities like Rome, Florence, and Venice.
Like with Spain, setting up an STR in Italy is as safe an investment as you can get.
Demand is all but guaranteed thanks to the country’s attractiveness for tourists around the world, and that is true at nearly all times of the year.
However, do keep an eye out for evolving rental regulations in the country.
For instance, property owners must pay tax on the income generated through their rental, and Italy’s controversial new regulations also mean that all guests must be greeted in person, making remote operations difficult.
Regardless, if hiring a greeter is an option for you, setting your holiday home as a STR to offset costs can still be a worthwhile investment.
United Kingdom
While you might have to sacrifice some of the sunny weather of other European countries, the United Kingdom is also a fantastic place to call your second home.
From the electrifying energy of London to the peaceful fields of the Oxfordshire countryside, the United Kingdom has a lot to offer in terms of its nature, culture, and general safety.
Even if the big city or the deep countryside aren’t your thing, you can consider a beautiful seaside property in the Cotswolds, where you can enjoy the pleasures of a walk on the sand, a dip in the sea, or even a short adventure on a surfboard!
The United Kingdom in general is also considered a safe place to invest in property given the country’s strong economic stability.
Housing prices are also rising as a result of the country’s current housing crisis but, as long as you have the funds, a property in a big city like London or a vacation spot like the Cotswolds will likely yield significant profits.
The UK is also relatively friendly to foreign investors, although properties bought to let must pay tax, and there are some restrictions and registration requirements on STRs in London and beyond.
Portugal
Beautiful, vibrant, and affordable, Portugal is a fantastic destination in which to spend your holidays. Lisbon, its capital, is a wonderfully relaxed city with a real artistic flare.
Meanwhile, the Algarve and the Azores Islands offer natural beauty aplenty thanks to their turquoise coastlines and fantastic weather.
Portugal is also quite friendly towards foreign investors. There are no restrictions when it comes to buying properties in the country, and Immigrant Invest highlights a promising 1.9% increase in rent prices per quarter.
Investropa also highlights the Portuguese market’s potential for attractive rental yields, as its economy is growing and its population is getting richer.
Its STR regulations are also focused on smaller local markets, allowing for a lot of variation in regards to where you choose to invest.
Lithuania
One of Europe’s smaller nations, Lithuania is a hidden gem by the Baltic Sea.
Safe, affordable, and beautiful, Lithuania is a great place to consider for a second home if what you want is a quiet life surrounded by nature, from the dunes of the Curonian Spit to the lakes that surround Trakai Castle. Its capital, Vilnius, is itself a hub of greenery and history, housing a bohemian arts scene to boot.
While it may seem like a surprising inclusion in this list, Lithuania was recently found to be one of the best European countries in which to invest through property.
According to Euro News and Global Property Guide, rentals in Vilnius promise an average rental yield of 5.65%.
It is also a very friendly country when it comes to foreign investments, as the purchase of properties is not restricted, and STRs are not regulated by the state beyond the collection of rental tax – although some municipalities do impose some restrictions.
How can I run a rental business remotely?
While running a rental business remotely is absolutely possible, it does come with its fair share of challenges.
For example, many property managers ask themselves how to protect their investments from property damage while they are away.
Some owners consider insurance, while others opt to have their guests pay damage waivers to protect their assets. Truvi’s Damage Protection Service is also an option in this regard, as it covers damages from US$500 to US$5,000,000.
Thanks to its Swift Resolution Process, you can also expect a fast turnaround in every decision, usually within 5 business days, all of which can be easily managed through Truvi’s online platform.
We protect against:
- Stained linens
- Smeared towels
- Unintentional guest damage
- Unsolicited smoking damage
- Unapproved party damage
- Delivery expenses of replaced items
We don’t protect:
- Cosmetic damage
- Pet damage
- Wear and tear
- Management fees
- Maintenance expenses
- Approved party damage
Truvi’s Guest Screening Service can also protect your property from problematic tenants by validating private information like a guest’s name, email, and address.
This is particularly important for property managers who work remotely, as it is less likely that you will have the chance to meet your guests in person or validate their documents to check that they are who they say they are.
With Truvi’s guest screening service, you will be able to tailor your guest screening process to your needs, flag suspicious profiles, screen guests against an internal watchlist, and protect yourself against last minute bookings.
Above it all, Truvi and our services operate 100% remotely, supporting you as you scale your business anywhere in the world. For more information about how to manage a STR remotely, you can check out our guide on the topic by following this link.
