Which Are the Best Countries to Invest in a Vacation Home in 2025?
Buying a vacation home is no longer just a luxury—it’s becoming a global lifestyle and investment trend. With travel booming again and more people embracing flexible work arrangements, the demand for second homes in beautiful, well-connected destinations has surged. In 2025, stable property markets, attractive rental returns, and residency incentives are making international real estate more appealing than ever. Whether you’re searching for a beachfront escape, a cultural retreat, or a strong rental investment, choosing the right country matters.
High-net-worth individuals today have the flexibility to purchase a second home across more than 250 global destinations. With so many choices available, deciding where to invest can feel overwhelming. To simplify this, Property Finder evaluated and ranked 32 countries based on how attractive they are for owning a vacation home.
As the UAE’s leading real estate classifieds platform, Property Finder understands what buyers look for when choosing a holiday property. Using this insight, the company developed a “Vacation Score,” which measures each country’s appeal across key factors such as affordability, ease of access, market growth, and potential rental income. In this guide, we’ll explore the best global destinations for owning a vacation home based on lifestyle appeal, value, ownership rules, and long-term potential.
Key Factors to Consider Before Buying a Vacation Home Abroad
Before investing in a vacation property overseas, it’s important to assess a few key elements that influence both lifestyle enjoyment and financial return:
Property Prices & Affordability: Compare average home prices, maintenance costs, and long-term expenses to ensure the investment aligns with your budget.
Visa / Residency Benefits: Some countries offer residency or citizenship incentives with property purchases, which can add major value.
Rental Income Potential: Analyze whether the market supports short-term holiday rentals, long-term leases, or both, and check seasonal demand.
Ownership Laws for Foreign Buyers: Rules vary—some countries allow full ownership, while others limit freehold rights or require local partnerships.
Currency Stability & Taxes: Evaluate exchange rates, inflation, property taxes, and rental income taxation.
Lifestyle, Climate & Tourism Demand: Choose a location that matches your personal goals, whether it’s relaxation, adventure, culture, or consistent year-round tourism.
Top 5 Countries for Buying a Vacation Home
Below are the top-performing countries for purchasing a vacation home, based on Property Finder’s Vacation Score.
The five best destinations for owning an overseas holiday property are Spain, France, Portugal, the United Arab Emirates, and the United States.
1. Spain (Score: 79.3/100)
Ideal for: Lovers of art, culture, and architecture
Spain leads the global ranking with an impressive Vacation Score of 79.3/100, thanks to its rich cultural heritage, excellent accessibility, and overall affordability. Home to 50 UNESCO World Heritage Sites, the country offers a mix of historical beauty, vibrant cuisine, pleasant climate, and relaxed lifestyle — all contributing to a strong Lifestyle & Environment score of 76.7/100, one of the highest in the category.
Spain also shines in Accessibility & Infrastructure, scoring 83.0/100 due to its strong tourism network, 48 airports (including 41 international), modern transport systems, and high-speed train routes. While not the cheapest market, Spain provides excellent value for money. Its combination of culture, convenience, and lifestyle makes it one of the world’s most appealing destinations for a second home.
France (Score: 69.4/100)
Best for: Fashion lovers, food enthusiasts, and luxury travellers
France takes the second spot with a strong Vacation Score of 69.4/100. Similar to Spain, it performs exceptionally well in the Lifestyle and Environment category (76.7/100), thanks to its rich cultural and natural heritage. France is home to 54 UNESCO World Heritage sites and remains one of the world’s most visited destinations.
With an Accessibility and Infrastructure score of 72.2/100, travelling within France is simple and convenient. The country has an extensive network of airports—more than 30 in total—along with efficient rail and road systems. Although affordability varies by region, France is still among the least budget-friendly destinations on this list, making it more suitable for high-income buyers seeking a premium second home.
Portugal (Score: 65.8/100)
Best for: Golf enthusiasts
Portugal claims third place with a Vacation Score of 65.8/100. Its prime location, deep-rooted culture, and historic charm make it a favourite among international second-home buyers. With a Lifestyle and Environment score of 66.3/100, Portugal ranks fifth for overall destination appeal, offering a perfect blend of golden beaches, scenic landscapes, and historic architecture. The country is also exceptionally safe, scoring 6.55 in Safety & Security—92% better than the global average.
Portugal is especially famous for its world-class golf courses, recently voted the World’s Best Golf Destination 2024 at the World Golf Awards. This makes it an ideal second-home location for travellers who prioritise golfing.
United Arab Emirates (Score: 65.4/100)
Best for: Frequent fliers and luxury jetsetters
The UAE ranks fourth with a Vacation Score of 65.4/100, driven by its unmatched accessibility, stable environment, and world-class lifestyle. With eight international airports and six national carriers connecting to over 600 global destinations, the UAE leads in air transport infrastructure and stands second in international openness. Its impressive Accessibility and Infrastructure score (88.2/100) shows just how easy it is to travel to—and within—the country.
The Affordability & Value score of 68.1/100 highlights the country’s strong value proposition. While property prices are not the lowest, high-net-worth buyers get more luxury per dollar in cities like Abu Dhabi and Dubai compared to other global markets. Add benefits like 100% foreign property ownership, the Golden Visa for investors, and zero property tax, and the UAE becomes a top-tier destination for vacation-home buyers.
United States (Score: 64.4/100)
Best for: Buyers seeking diverse and value-for-money properties
The United States comes in fifth with a Vacation Score of 64.4/100. From oceanfront properties to mountain escapes, the country offers incredibly diverse real estate options. Despite its sheer size, it remains easy to explore thanks to strong Accessibility and Infrastructure (72.6/100), with excellent air travel connections and well-developed tourism services.
Although the U.S. is not the most affordable destination—its Affordability & Value score stands at 51.4/100—the price-to-income ratio ranks in the 97th percentile, meaning buyers can find excellent value in regions outside major metropolitan cities. This makes it a compelling choice for second-home buyers seeking a blend of affordability, accessibility, and variety.
Table 1. Ranking of Countries Based on Vacation Score and Appeal for Buying an Overseas Vacation Home
| Country | House Price Index 10-Year Growth (%) | Affordability & Value (100) | Accessibility & Infrastructure (100) | Lifestyle & Destination Appeal (100) | Tax Burden (100) | Final Score (100) | Rank |
|---|---|---|---|---|---|---|---|
| Spain | 77.9 | 56.9 | 83.0 | 76.7 | 47.1 | 79.3 | 1 |
| France | 27.5 | 43.1 | 72.2 | 76.7 | 30.1 | 69.4 | 2 |
| Portugal | 154.8 | 36.1 | 61.1 | 66.3 | 45.8 | 65.8 | 3 |
| United Arab Emirates | -9.2 | 68.1 | 88.2 | 34.4 | 90.3 | 65.4 | 4 |
| United States | 88.0 | 51.4 | 72.6 | 58.7 | 32.2 | 64.4 | 5 |
| Italy | 16.6 | 43.1 | 61.8 | 71.5 | 41.7 | 63.7 | 6 |
| United Kingdom | 47.8 | 37.5 | 71.5 | 66.3 | 33.5 | 63.0 | 7 |
| Denmark | 52.1 | 58.3 | 77.1 | 55.6 | 24.4 | 61.9 | 8 |
| Germany | 54.7 | 63.2 | 66.7 | 63.9 | 32.6 | 61.0 | 9 |
| Switzerland | 35.6 | 19.4 | 70.1 | 61.5 | 61.1 | 60.0 | 10 |
| Netherlands | 113.9 | 48.6 | 72.9 | 56.3 | 35.2 | 59.7 | 11 |
| Austria | 59.4 | 44.4 | 63.9 | 56.9 | 48.3 | 57.8 | 12 |
| Japan | 38.5 | 50.0 | 48.6 | 71.5 | 45.0 | 57.7 | 13 |
| Australia | 60.7 | 41.0 | 51.0 | 64.9 | 31.6 | 57.7 | 14 |
| Singapore | 47.9 | 6.9 | 88.2 | 32.6 | 64.5 | 55.8 | 15 |
| Greece | 75.7 | 26.4 | 64.9 | 43.8 | 44.2 | 55.0 | 16 |
| Canada | 64.6 | 47.2 | 39.6 | 62.9 | 36.1 | 52.7 | 17 |
| Sweden | 39.4 | 61.1 | 50.0 | 58.3 | 58.3 | 52.5 | 18 |
| Czech Republic | 139.7 | 44.4 | 51.0 | 47.9 | 80.4 | 48.1 | 19 |
| Belgium | 46.1 | 61.1 | 59.0 | 47.2 | 9.6 | 47.8 | 20 |
| South Korea | 26.7 | 38.9 | 38.9 | 53.5 | 57.7 | 47.2 | 21 |
| Ireland | 97.1 | 51.4 | 47.9 | 39.6 | 41.0 | 47.0 | 22 |
| Finland | 0.1 | 61.1 | 37.2 | 55.2 | 28.6 | 46.1 | 23 |
| New Zealand | 78.6 | 54.2 | 51.7 | 43.1 | 66.8 | 45.7 | 24 |
| Poland | 115.2 | 62.5 | 39.9 | 48.3 | 81.7 | 45.0 | 25 |
| Turkey | 2132.4 | 63.9 | 38.2 | 38.2 | 50.4 | 44.5 | 26 |
| Qatar | -21.2 | 68.1 | 40.6 | 27.8 | 96.1 | 41.9 | 27 |
| Malta | 77.4 | 54.2 | 47.6 | 22.9 | 75.4 | 40.6 | 28 |
| Malaysia | 39.6 | 76.4 | 35.8 | 41.3 | 51.3 | 40.6 | 29 |
| India | 53.8 | 62.5 | 29.9 | 47.2 | 52.2 | 39.9 | 30 |
| Mexico | 126.4 | 50.0 | 13.2 | 55.6 | 65.0 | 37.7 | 31 |
| Indonesia | 21.2 | 50.0 | 15.3 | 52.8 | 74.0 | 37.3 | 32 |
Conclusion: How to Choose the Right Country for Your Vacation Home
When purchasing a vacation home, buyers naturally look for destinations that offer safety, security, and rich natural or cultural experiences. These lifestyle and environmental elements are what truly enhance a holiday.
Accessibility is another key factor. A good vacation-home destination should offer strong transport links, smooth connectivity, and reliable tourist services, making it easy for homeowners to fly in, get around, and enjoy their stay comfortably.
If you’re ready to begin your search, explore our curated listings of properties for sale across the UAE. On Property Finder, you’ll find a diverse selection of apartments, townhouses, penthouses, and villas located in Dubai, Abu Dhabi, Ras Al Khaimah, Sharjah, Ajman, Umm Al Quwain, and Fujairah—each offering exceptional options for your next vacation retreat.
Methodology
To determine the best countries for vacation-home ownership, we developed a Vacation Score, ranking each destination based on its overall suitability. Each metric is weighted by importance. Below is an overview of the data points and sources used:
Investment & Value Metrics
House Price Index (10-Year Growth): Based on the 10-year change in the BIS Residential Property Price Index. Higher growth is considered better.
Gross Rental Yield: Annual rental income (before taxes/expenses) as a percentage of property value, sourced from the Global Property Guide. Higher yields offer better returns.
Affordability & Value Factors
Price-to-Income Ratio: Measures apartment affordability using median property prices versus median disposable household income (Numbeo). Lower is better.
Price Competitiveness: Indicates how affordable travel and operations are within a country (WEF Travel & Tourism Development Index 2024). Higher is better.
Tax-Related Metrics
Average Rental Tax: Sourced from the Global Property Guide. Lower rates provide more value.
Property Transfer Tax: Stamp duty applied during property purchase (Global Property Guide + national tax references). Lower is better.
Annual Property Tax: Ongoing tax based on property value. Lower is preferred.
Rental Income Tax (Midpoint): Mid-range rental income tax values from the Global Property Guide. Lower is better.
Capital Gains Tax (2%): Tax on profit from selling property (Global Property Guide + national tax sources). Lower rates are more favourable.
Accessibility & Infrastructure Metrics
Data from the WEF Travel & Tourism Development Index 2024:
International Openness: Measures how welcoming a country is to tourists and travel services. Higher scores are better.
Air Transport Infrastructure: Assesses the strength of a country’s air travel network and connectivity. Higher is better.
Ground & Port Infrastructure: Evaluates availability of road, ground, and port transport options. Higher is better.
Tourist Services & Infrastructure: Reviews the capacity and efficiency of tourism-related services. Higher is better.
Lifestyle & Environmental Factors
The following data points are sourced from the World Economic Forum’s Travel & Tourism Development Index 2024.
Safety & Security
Measures how protected residents, travellers, and businesses are from security-related risks. A higher score reflects better safety conditions.
Cultural Resources
Represents the availability and richness of cultural assets such as historical landmarks and archaeological sites. Higher values indicate stronger cultural appeal.
Natural Resources
Assesses the strength of natural attractions and the potential for outdoor tourism activities. Higher is considered better.
Environmental Sustainability
Evaluates how energy-efficient and environmentally responsible a country’s travel, tourism sector, and overall economy are. A higher score signals greater sustainability.
Vacation Score
The Vacation Score (maximum 100 points) is calculated using a weighted blend of the metrics listed above.
Lifestyle & Environment (Total Weight: 48%)
Safety & Security – 16%
Cultural Resources – 14%
Natural Resources – 9%
Environmental Sustainability – 9%
Accessibility & Infrastructure (Total Weight: 42%)
Air Transport Infrastructure – 14%
Tourist Services & Facilities – 14%
International Openness – 9%
Ground & Port Infrastructure – 5%
Affordability & Value (Total Weight: 13%)
Price Competitiveness – 5%
Price-to-Income Ratio – 2%
10-Year House Price Growth Index – 1%
Gross Rental Yield – 1%
Tax-Related Factors (Total Weight: 1%)
Average Rental Tax – 0.30%
Property Transfer Tax – 0.20%
Annual Property Tax – 0.30%
Rental Income Tax (midpoint) – 0.10%
Capital Gains Tax – 0.10%