Best Europe Short-term Rental Opportunities
Mons, Belgium · Member since 2017 · 21 posts · 2 votes
Best Europe Short-term Rental Opportunities
Most Popular Reply
Member since 2020 · 2 posts · 1 vote
4yQuote from @Jeremy Mahan:
I recently moved to Europe from Texas and have noticed that there are lots of short-term (Airbnb) rentals in most of the European cities. I am interested in getting more information about which cities would be the best options for a first time short-term rental owner. I have owned long-term rental properties in the States for more than 10 years, but have no experience with short-term, and no experience with Europe home ownership. Where would I look to find information about the best European cities/regions to invest in short-term rentals? I'm looking for information about restrictions to foreign investors, taxes, ability to get a mortgage, affordability, etc. If there is a site or someone has this information, I would really appreciate it.
My wife and I keep our eyes open for Italian STR opportunities. We both love the country and the area.
We belong to a couple Italian real estate groups on Facebook and see a lot get posted. Hope that helps at least some!
8 Replies
- Member since 2020 · 2 posts · 1 vote4y
Quote from @Jeremy Mahan:
I recently moved to Europe from Texas and have noticed that there are lots of short-term (Airbnb) rentals in most of the European cities. I am interested in getting more information about which cities would be the best options for a first time short-term rental owner. I have owned long-term rental properties in the States for more than 10 years, but have no experience with short-term, and no experience with Europe home ownership. Where would I look to find information about the best European cities/regions to invest in short-term rentals? I'm looking for information about restrictions to foreign investors, taxes, ability to get a mortgage, affordability, etc. If there is a site or someone has this information, I would really appreciate it.
My wife and I keep our eyes open for Italian STR opportunities. We both love the country and the area.
We belong to a couple Italian real estate groups on Facebook and see a lot get posted. Hope that helps at least some!
- Member since 2022 · 1k+ posts · 1k+ votes4y
I would look towards more of your southern or eastern Euro countries. The lower on the income scale the better, so think Greece, Portugal etc not Norway, Switzerland etc. I would also look at vacation destinations where the local income is lower, not capitals and large cities that have lots of well paid employment which equals higher cost of living.
Greece, Sardinia and SW France would be where I would look, but that’s with my own lifestyle interests factored in. I think Greece especially would have good ADR to purchase price ratios.
Another thing to keep in mind is that it’s worth spending at least a few months renting so you can get a feel for the actual cost of real estate. It’s tough to find international listings on line, and they are usually overpriced. - Investor · Miami, FL · Member since 2014 · 50 posts · 36 votes4y
Great post @Jon Martin had some great points like the lower income scales. I would start by looking at some travel destinations ? Where would you go for a couple months in Europe if you were living in the states? I would suggest Spain and Portugal they seem to be well balanced in "most" aspects. Italy no, I lived there it's a nightmare to do business their whole system is a sophisticated third world country.
- Rental Property Investor · Spain · Member since 2022 · 1 post · 1 vote4yHi! I'm an investor from Spain. Any information you need about this market you can DM or text me on +34605327327
Quote from @Andres Calderon:
Great post @Jon Martin had some great points like the lower income scales. I would start by looking at some travel destinations ? Where would you go for a couple months in Europe if you were living in the states? I would suggest Spain and Portugal they seem to be well balanced in "most" aspects. Italy no, I lived there it's a nightmare to do business their whole system is a sophisticated third world country.
I hope you the best investing in Europe! - Kapolei, HI · Member since 2014 · 42 posts · 18 votes4y
Jeremy,
My wife has lived part of the year in Florence, Italy (about 4 to 6 months each year). Rather than do leases I always get her an Airbnb. She has gotten to know a lot of the Airbnb owners. Demand in Florence is extremely strong as it is now a year round tourist and student market. In general what I have noticed, from being a typical customer.
1) The closer to the Duomo the better
2) Make the unit as stylish as you can. There are a lot of units that are funky.
3) I can’t say which would rent better between a one bed or two/three. We have rented both and both seem in high demand.
4). I am thinking of buying there myself as with the Euro at $.99 and headed lower to a USD buyer it’s like getting a 25% discount .
I hope this helps
- Investor · Barcelona & Valencia (Spain) · Member since 2017 · 322 posts · 177 votes4y
@Jeremy Mahan @Andres Calderon
Hi guys,
Spain for sure is one of the best locations in Europe to be in general and related to that owning STR properties.
The thing is that tourist licenses are getting more restricted bit by bit, starting in the bigger cities.
In for example Barcelona, you can forget obtaining a tourist license on your property. The only way is buying a property that already has a tourist license, however the value of these properties increases with 50-100k and will affect your yield.
We are active a lot in Valencia (third biggest city of Spain) and there you can still obtain tourist licenses if you know what you're doing. Always ofcourse in collaboration with an architect who is doing the due diligence checks so you know for sure you can get it.
As a foreigner it is as easy as for residents to get a mortgage, the only thing is that non-residents can get up to 70% LTV mortgages (80% for residents) and for tourist rentals it normally drops a bit more to around 60ish% LTV. European non-residents start with 19% income tax (STR's are normally added to your taxable income if you don't provide hotel services during their stay, which is 0 if you don't live there yourself) and can deduct costs, while non-Europeans start with 24% and can not deduct costs.
The affordability is completely based on your property (location, rates, occupancy), however we are normally able to achieve 20+% gross yields with these STR's. Have in mind though to calculate a management fee deduction if you are not going to manage the place yourself. Even with this management fee, you can see why people are finding the STR business an interesting investment strategy.
Not to forget that an STR can be your holiday destination as well if you decide to stay their yourself once per year.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes4y
Quote from @Mike Casper:
Would you care to share the name of the groups? I intend to buy a vacation home in Tuscany some day and love watching the market.
The DIY Landlord Book4.7247 Reviews - Mons, Belgium · Member since 2017 · 21 posts · 2 votes4y
Thanks for all the replies. It sounds like Spain may be the best option. I am worried about the restrictions they are starting to impose in some of the larger cities, so I'll probably focus on mid-sized cities and tourist hot spots. Any other advice you might have would be welcomed. Thanks again!
Join the conversationCreate a free account to reply, vote on answers and follow this thread.