According to Kate Everett-Allen of real estate firm Knight Frank, three countries are considered to be perennial favorites for holiday home buyers in Europe.
These countries are not surprising because they are also included in the list of top tourist destinations. Reason for France, Italy and Spain.
All three countries have political stability, good governance and easy access to the mortgage market, factors that have made them popular with foreign buyers, Everett-Allen said.
It is also easy for buyers to understand the real estate market through land registers that show how many properties have been sold. At the same time, they offer other advantages, such as impressive nature, cuisine and attractive cities.
France
According to the UN World Tourism Organization, France is the most visited country in the world.
Provence and the Alps are the most popular investment locations for buyers from northern Europe, according to Everett-Allen. After the pandemic, the Alpine region became popular due to the outdoor activities it offered.
It should be noted that France is also trying to attract American businessmen with a plan to make it easier for French businessmen in the US to access extended visa periods and for American business owners to benefit from a simplified visa process.
At the same time, France is encouraging buyers of newly built outbuildings in the country through tax incentives that will refund the standard rate of tax of 20% if they make the property available to rent for around 14 weeks a year.
Italy
Tuscany, with its vineyards, farmhouses and beautiful cities like Florence, Siena and Lucca, is always a favorite, according to Everett-Allen.
No less popular are the towns and villages around the lakes in the northern part of Italy.
Also, the Apulia region in southern Italy is considered more economical for real estate investment, while offering a beautiful and diverse landscape. The region of Umbria in the middle country and Sicily in the south are also popular.
Italy has become popular with wealthy foreign buyers resident in the country because of a tax rate introduced in 2017 that allows them to pay a flat fee of €100,000 a year on income generated abroad, regardless of how much it is.
This “flat tax” applies to all family members, who pay a flat rate of €25,000 a year, and has “excited” Knight Frank clients in Europe and beyond, Everett-Allen said.
Spain
Spain is popular as a place to buy holiday homes with the French, British and Germans.
The Balearic Islands and the southern coastal city of Marbella are among their preferred locations, according to data from Knight Frank.
Madrid is also in the sights of foreign buyers as an alternative to London or Paris.
The country is likely to become even more popular for foreign buyers thanks to a new digital visa for digital nomads introduced this year, which allows people from outside the European Union to live and work in Spain for up to five years.
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