Top 10 Places to Buy a Vacation Home in 2025

best places to buy a vacation home

Whether it is a casa by the sea or a modern apartment in a bustling city, many of us dream of buying a vacation home where we can rest, have fun, and see the world. On top of that, a second home can be a great investment, and could even help you start or grow a short term rental business. If you are reading this now, you may be close to making that dream a reality!

 

But with so many amazing places to live all over the world, how can anyone possibly choose?

 

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 before sharing some of our top picks for the best places to buy a holiday home in 2025.

 

 

Screenshot 2025-05-20 at 11-23-35-1

 

What are the best places to buy a vacation home in the world?

 

In no particular order, here are some of our top picks for 2025 from all around the globe!

 

 

1. Dominican Republic

 

Boasting beautiful beaches and sun all year round, the Dominican Republic is a fantastic vacation home location for those looking for a little R&R. Whether you opt for the tranquil coastal beauty of Punta Cana, the relaxed pace of Puerto Plata, or the lively cultural happenings of Santo Domingo, this Caribbean nation is sure to enchant your with its easygoing lifestyle and natural beauty.

 

Adding to the Dominican Republic’s appeal, it is worth pointing out that this country is known for having a straightforward property acquisition process.

Foreigners can buy a home in the Dominican Republic with no restrictions, and largely the same conditions as locals. This is also true when it comes to rental rights: foreigners are absolutely permitted to rent out their properties like DR nationals do.

And considering the Dominican Republic’s stable political and economic climate, as well as its potential for growth, 2025 might be the perfect time to make your Punta Cana dream home a reality.

The Dominican Republic is also generally friendly towards STRs, although it is likely that owners will need to pay tax to the National Taxpayers Registry (”Registro Nacional de Contribuyentes”).

However, that might well be worth it given rental yields can be as high as 23% in Punta Cana, and a respectable 6%-9% in Santo Domingo according to Latinvestor.

 

 

2. France

 

What’s not to love about La France? From the glamour of Paris to the natural beauty of regions like the Alps and Provence, this European hub has something for everyone – art-lovers, hikers, and beach-goers alike.

Add free, quality healthcare and great infrastructure to the list, and you’ve got yourself a truly ideal vacation home location.

France has also been at the top of STR investment links for many years, and 2025 could be the perfect time to get in on some of that action.

According to Investropa, the Frech property market is expected to grow in the coming years, as less building permits are being approved, which might lead to higher rental prices in the future.

While France does not tend to produce particularly strong rental yields right now, its remarkable economic and political stability make it a great country to invest in regardless.

Nevertheless, before deciding on a property, it is worth reviewing France’s state and local laws regarding STRs, as France has recently imposed new regulations on certain rental markets across the country.

 

 

3. Peru

 

If you are looking for a country with beautiful mountains, a rich cultural history, and great food, you will love Peru.

Often overlooked amidst the booming rental markets of Latin America, this nation off the coast of the Pacific Ocean is home to a number of bustling cities and cultural sites.

Lima and Arequipa are both growing retirement destinations for those looking for large population hubs where the cost of living remains remarkably low.

Meanwhile, those seeking adventure can opt for a property in Cusco, a magnet for hikers and lovers of Spanish colonial architecture.

Perú is also friendly to overseas home buyers and investors, and offer attractive retirement visas to those who recieve a pension of at least $1,000 per month.

From there, it is easy to obtain Peruvian citizenship after only a few years of residence.

The Latinvestor also points out that 2025 could be a great time to purchase property in Peru thanks to the country’s current stability, promising gross rental yields ranging from 3.2% to 5.9% as well as the potential for significant economic growth.

Airbnb regulations in Peru are also very lenient, allowing for easy operation.

That being said, make sure you research recent laws like the Supreme Decree N° 011-2024-IN, which establishes that Airbnb owners are required to report the details of foreign guests to the Peruvian Migration Office.

 

 

4. Thailand

 

Thai cities like Chiang Mai and Bangkok are already immensely popular with digital nomads and tourists alike – and for good reason.

Thailand in general offers amazing food, beautiful natural retreats, and a variety of cultural sites and beaches to visit during your free time.

Safe and very affordable, this alone makes Thailand a perfect vacation home spot for many around the world.

It also helps that Thailand has recently opened its doors to foreign investment, with new policies making so that foreigners can own up to 49% of a condominium building, with many suspecting this percentage may be raised in big cities such as Bangkok.

The country is also friendly towards STRs and counts with the perfect market for them given Thailand’s strong touristic pull.

Airbitics shows that occupancy rates in many popular Thai cities tend to oscillate between the 50-70% range, and rental yields rest around the 12.3% mark in Bangkok, Phuket, Pattaya, and Chiang Mai.

 

 

5. South Africa

 

From the stunning landscapes of the Karoo to the technological hubs of Cape Town and Johannesburg, South Africa is a wonderfully diverse country in which to purchase a holiday home.

This is especially true if you are a fan of outdoor adventures, whether that is visiting wildlife reserves or diving into its sun-kissed beaches.

Add to that a high standard of living and remarkable affordability, and you have yourself a lovely new place in which to make a bunch of new holiday memories.

Buying property in South Africa should also be a smooth process.

The country does not restrict property acquisitions made by foreigners, and the lack of a language barrier is sure to make the transaction go smoothly.

The South Africa economy is also expected to grow by 6% over the next five years, making it an attractive space for long-term investments.

This is supported by the average rental yields for 2025 reported by Africanvestor, which range from 11-14% in Pretoria, 10-13% in Johannesburg, and 6-9% in Cape Town.

South Africa is also quite lax when it comes to regulating STRs. That being said, make sure to check for local regulations before renting out any properties in South Africa, especially in Cape Town.

While there are no strict national regulations for STRs, local and municipal laws may still apply.

 

 

6. Belize

 

Belize may be small, but it is full to the brim with all the charm and relaxation of tropical living. Right on the coast of the Caribbean Sea, Belize counts with not only the sandy shores of Ambergris Caye or the scenic town of Placencia, but also the sprawling rainforests of the Cayo District.

It is a diverse, beautiful place to live in Central America, and a great option for a vacation home spot.

It also helps that Belize has no restrictions on foreigners buying property, keeping the process simple and loosely regulated.

They also offer an attractive Qualified Retirement Program that grants resident cards and tax exemptions to those looking to retire in Belize, as long as they receive a monthly retirement income of $2,000.

Another huge plus to buying property in Belize is that there is no language barrier, as the country is a former UK colony.

All this, combined with the fact that the Belize economy is currently experiencing an exciting period of growth, makes it an option well-worth considering when it comes to investing in its real estate market.

Belize’s STR regulations are also lax, with Airbnb owners facing very few requirements beyond registering their property with the Belize Tourism Board before listing it online – a small price for the 8–15% rental yields and 57% occupancy rate of Ambergris Caye.

 

 

7. California, USA

 

There are so many fantastic vacation home spots to choose from in the United States, from the relaxed Florida coastline to the electrifying energy of Chicago or New York City. But if what you want is a safe bet in terms of weather, culture, and investment, the state of California is the place to be.

San Diego, San Francisco, Los Angeles – all of these are fantastic places to live and serve as a great STR market to boot, with average occupancy rates in these cities resting at around 50% or more.

And if big cities aren’t your thing, you can consider smaller towns like Santa Barbara, where you can enjoy the summer fun while renting your property out to students during the rest of the year.

There are no restrictions placed on foreigners when it comes to buying property in California (or the rest of the USA, for that matter).

However, do make sure you read up on local rental restrictions before you make any purchases, as big cities like Los Angeles can and do establish guidelines for renters to follow.

If you want to read up on more great Airbnb markets in the United States, you can check out our article on the matter by clicking on this link.

 

 

8. Indonesia

 

Whether it is the bustling streets of Jakarta or the placid beaches of Bali, there is so much to love about Indonesia. And if you are the sort of person who gets bored with routine, fear not. Indonesia has over 17,000 islands for you to explore, from Gili Air and Java to the lesser known Kalimantan and Raja Ampat (of particular note if you enjoy diving!).

An overall affordable and safe location, Indonesia could very well be a place to call your second home.

Investment opportunities are also rife in Indonesia in 2025, with the Indonesian government focusing on sustainable, eco-friendly developments thanks to their National Roadmap for Green Building Implementation.

A report from Mordor Intelligence further projects that the Indonesian real estate market will grow from 68.55 billion USD in 2025 to 90.96 billion USD in 2030, showcasing an annual compound growth rate of 5.82%.

This means that investing in Indonesian property is likely to be a profitable long-term investment.

While STR regulations are considered to be lenient in Indonesia, it is still worth familiarizing yourself with local zoning laws and restrictions.

STRs also need a license to operate, and managing a property as a foreigner can often come with a few extra legal steps to get your business up and running.

When it does, however, rental yields in most of Indonesia’s major tourist destinations range from 5-12%.

 

 

9. 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 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 you won’t see it in most lists, 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%. Vilnius also boats an average occupancy rate of 54% according to Airdna.

It is also worth noting that Lithuania is a very friendly country when it comes to foreign investments, as the purchase of properties is not restricted at all in this small European nation.

STRs are also not regulated by the state beyond the collection of rental tax, although some municipalities do impose some restrictions.

 

 

10. Panama

 

Thanks to its tropical climate and affordable cost of living, Panama has become one of the top vacationing and retirement spots the world over, especially for its North American neighbors. From the beaches of Coronado to the urban lifestyle of Panama City, there is a lot to love about the Central American nation and its relaxed way of life.

And the best part?

Panama is also a very well-developed nation, counting with high-speed internet and a highly advanced medical system to help keep its population (and visitors!) healthy and connected.

Considering the above, it is no wonder that Panama is considered a great place to invest in property in 2025.

Not only does it offer attractive tax benefits for buyers, but foreigners can even use this as a path to gain a Panamanian “golden visa”, as well as full citizenship after five years. Politically stable and with a growing tourism industry, buying property in Panama could pay dividends a few years down the line.

Even now, Airbnb occupancy rates rarely fall below 50%, and revenue growth year over year stands at 46.7%.

Panama is also generally friendly to STRs, especially in its coastal areas. However, rentals under 45 days are prohibited by law in Panama City, and other local restrictions may apply in other parts of the country.

 

 

Screenshot 2025-05-15 at 12-15-46-1-1

 

What should you consider when buying a vacation home?

Your goals

 

First and foremost, ask yourself: “Why am I buying a vacation home?”

This may sound like a silly question but, it is important to know exactly what you want to get out of this purchase. Are you buying a holiday home purely for the purpose of having a nice place to stay while you are vacationing?

Conversely, is your new home mostly going to be a financial investment that you do not plan to live in for long stretches of time?

Or it a mix of both? You could even consider whether there are any other reasons why you might want to invest in a vacation home, such as obtaining citizenship in a new country.

While all these are perfectly valid reasons to be looking into buying a vacation home, they each carry a unique set of considerations that must be carefully explored before you go ahead with a purchase.

For example, if you are buying a vacation home purely for the purpose of using it yourself, then you might care a lot 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, take some time to consider exactly what you want from your new home.

 

 

Budget

 

Of course, it is very important to have a budget in mind when you are looking to buy a new property. This not only means deciding how much you would like your property to cost (although that is undoubtedly important) but also any other related costs.

Will you have to pay property tax on your vacation home, for example?

What is the cost of living in the area you are moving to?

How expensive is it to travel there, and do your need to consider extra costs like new medical insurance?

All of these questions will help you figure out just how much your vacation home will cost in practice. And given this article will be considering a number of locations all around the world, it may be worth checking out how your local currency fairs against the currency in the country where you will be spending your holidays.

 

 

Personal preferences

 

When it comes to buying a vacation home, you need to consider where you will 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 vacation home location, here are a few considerations you may want to keep in mind:

 

  • 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 speak English already. The United Kingdom and Ireland are obvious choices in this regard, but countries like Germany and The Netherlands also count with 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.

 

Laws and regulations

 

Before you think about buying a new property, make absolutely sure that you have done your research on the laws that regulate both the purchase of properties by foreigners and their ability to rent these properties out as STRs.

If you are dealing with a real estate market that is not well-known to you, you may want to consider working with a lawyer, solicitor, or investment specialist who has a deep understanding of said market, as they will help you get the most bang for your buck.

In markets where you are faced with a language barrier, working with a professional is doubly important to make sure you understand any and all legal documentation and guidelines correctly.

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.

 

 

National politics and economics

 

Before you move anywhere new, it is always important to research that location thoroughly, especially if it is a completely new country. It is possible that one of the locations you were interested in is currently embroiled in a tumultuous political situation or is seeing its economy struggle. A good general rule of thumb – both for investment and life – is to try to stick to markets that are stable politically and economically. This stability will make your investment less risky, and will probably save you a number of holiday headaches too.

 

 

Market behavior and demand

 

If you are planning to rent out your vacation home, it is important that you understand that not all markets are created equal, and it is your job to discover which might work best for your purposes, and which will not. For example, 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 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.

 

 

Healthcare and infrastructure

 

Remember: vacation 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. Lacking that, you should investigate what private healthcare options will be available to you, their cost, and whether any kind of health insurance is required or recommended.

You should also investigate the state of the country’s infrastructure. Making sure that its roads are well kept or that there are public transport options available will make your life a lot easier when trying to get around safely in your new home.

 

 

How can I run my short-term 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.

 

 

Subscription form

FAQs

The best place to own a vacation home will depend on your goals as an individual and a property owner. It is important to ask yourself whether you are buying a vacation home for the sake of using it purely as a place to spend your holidays, or whether you want it to act as an investment too.

Some popular spots that marry extensive holiday use and investment potential include the Dominican Republic, Thailand, and France, among others.

If you are less concerned with the potential of your property as an investment and are mostly looking for a place you can call home during your holiday time, you should consider what kinds of weather, activities, and lifestyles you enjoy, and let those factors guide your decision.

Yes, buying a vacation home can be a great way to invest in a country’s real estate market. This can be especially profitable if you are planning to rent out your holiday home as a short-term rental while you are away. Before you do that, however, make sure to thoroughly research the market in which you are planning to invest, their Airbnb regulations, and any laws that could impact real estate investment by foreigners in the area.

According to Charles Schwab, a vacation home can allow you to deduct mortgage interest and up to $10,000 from your taxes in the USA. However, if you then rent out that property, you will have to report the income it generates, which might be taxable. But even if this is the case, you will still be able to deduct any operational and rental expenses from that property, as well as its depreciation expense.