Best countries for international real estate investment for rental income?

I am looking to diversify my portfolio by purchasing property abroad specifically for long-term rental income. I have a budget of around $200k and am prioritizing countries with stable legal frameworks and high tourism demand. Could anyone share their experience or recommendations on which markets currently offer the best ROI for buy-to-let properties? I am particularly interested in Europe or Southeast Asia, but I am open to other suggestions as well.

With a $200k budget, Portugal remains a top contender. The rental market in Lisbon and Porto is strong, though prices have risen significantly. I'd suggest checking out this guide on European investment markets before making a decision.

If you are looking at Southeast Asia, Thailand is a classic choice. Phuket or Bangkok offer great rental yields, but be aware of the leasehold vs. freehold laws for foreigners. Always work with a local lawyer.

Consider Spain, particularly the Costa del Sol. It has a very stable legal framework and high demand from tourists year-round, which is perfect for long-term rental income.

For something a bit more affordable, Bulgaria is becoming a hotspot. If you are comparing coastal cities, this article on Varna vs Burgas gives a great breakdown of the potential ROI.

Vietnam is an emerging market with massive growth potential, but the legal framework is still catching up. It might be riskier than Europe, so keep that in mind for a first-time international purchase.

Bali, Indonesia, is fantastic for rental income, especially with high-end villas. However, ensure you understand the specific ownership structures like Hak Pakai or long-term leaseholds.

I've had great success in Greece. Athens is seeing a massive resurgence, and you can still find good properties in the $150k-$200k range that generate solid monthly revenue.

Don't overlook Malaysia. The 'Malaysia My Second Home' program is a plus, and the property market in Kuala Lumpur offers great value for money compared to other major Asian hubs.

If you want stability, Germany is the gold standard, but your $200k budget will only get you into smaller cities or secondary markets. The yields are lower, but the capital appreciation is very reliable.

Cyprus is another solid option. It has a very favorable tax regime for investors and a high volume of tourists, making it quite easy to manage a buy-to-let property remotely.

I would advise against jumping into a market just because of tourism. Look at the local infrastructure and the long-term expat population to ensure your property isn't just sitting empty in the off-season.

Hungary, specifically Budapest, offers very attractive yields. It's a major tourism hub and the entry price for a high-quality apartment is well within your budget.

If you are looking for residency options alongside your investment, you might find some useful information in this article about the best countries to buy property for citizenship in 2024.