choosing the best countries for airbnb investment

Top 8 Countries for International Airbnb Investment

Oct 5, 2023

Wondering what are the best countries for Airbnb short-term rental investing? You are not alone! Airbnb investing has been an incredibly popular business model among investors over the last few years and for a good reason.

As of 2023, Airbnb has more than a 20% share of the short-term rental market and is available in over 100,000 cities worldwide. This long reach and ease of access to the market are the primary reasons Airbnb has been the go-to choice for millions of investors looking to enter the short-term rental business.

However, just like all investment businesses, Airbnb investing comes with its own set of challenges. And the biggest one for inexperienced investors is choosing the best country to buy property in and finding a good deal in it.

This article will cover the top factors to consider when choosing the best country for Airbnb investing. We will also showcase some of the best locations to buy rental property in the world to help you find the most suitable one for your budget.

Now, let’s start with the basics of international real estate investing.

Top Factors to Consider When Looking for the Most Profitable Airbnb Countries

Choosing the best country for Airbnb investment is no easy task and requires a lot of research. You don’t want to skimp on this part, as it can make or break your Airbnb business. 

Overall, here are the most important things to look into when researching where to invest in Airbnb:

  • Local Regulations — Some countries have strict requirements on what properties can be used as short-term rentals, while others are pretty lenient. The more relaxed the requirements, the lower the barrier to entry will be.
  • Infrastructure — The state of a country’s infrastructure is often closely related to its popularity among foreign visitors. Investing in more developed countries is always safer, as they offer greater stability.
  • Length of the Tourist Season — Airbnb properties are most popular among tourists, so countries with a developed tourism sector and long tourist seasons are always a safe bet.
  • Property Prices — Investing in less popular countries where real estate is cheaper can be an excellent start if you’re new to Airbnb investing. At the same time, if you already have a substantial portfolio, it’s best to look for highly developed countries with expensive properties to maximize ROI.
  • Airbnb Occupancy Rates — The competition in the local market is also a crucial factor to consider. The higher the occupancy rates, the less competition there is on the market.
  • Taxes — Not all countries are welcoming to foreign investors, and that’s most evident in how they tax nonresidents. That’s why you should always do your due diligence and consult with a local CPA before buying.

8 Best Countries for Airbnb Properties | Buy & Rent

Based on the factors we showcased above, we shortlisted the best eight countries for Airbnb investing (in no particular order):

1. Portugal

Avg. Property Price Avg. Airbnb Rates Airbnb Occupancy Rates
$178,000 $87 48%

Portugal is a beautiful West European country with a rich historical heritage and a large coastline bordering the Atlantic Ocean. Although it has quite a competition in the tourism department (due to its neighbor, Spain), the number of tourists visiting Portugal has been steadily growing (over 4 million tourists in 2023).

Portugal’s climate is famous for its long, warm summers and short, mild winters, making its tourist season one of the longer ones in Europe. When you combine that with the country’s excellent quality of life, you get one of the best countries for real estate investment.

Some of the best cities for Airbnb investors in Portugal are the following:

  • Lisbon
  • Porto
  • Aveiro
  • Sintra
indonesia i s a good choice for short-term and long-term airbnb rental

2. Indonesia

Avg. Property Price Avg. Airbnb Rates Airbnb Occupancy Rates
$94,000 $100 61%

Indonesia is an island country in SE Asia that spans hundreds of beautiful islands brimming with lush tropical forests. Thanks to its tropical climate, the country has a year-round tourist season, making it one of the most profitable Airbnb locations on this list.

Besides its natural beauty and having over 4 million tourists visit it each year, Indonesia is also one of the most popular destinations for digital nomads due to its affordable living standards and lax laws. Of all the picks on this list, Indonesia has one of the best property-price-to-Airbnb-rates ratios, ensuring high ROI.

Some of the best Indonesian cities to consider investing in are the following:

  • Bali
  • Jakarata
  • Yogyakarta
  • Makassar
USA is always and forever will be one of the best destinations to buy an airbnb and rent it out

3. USA

Avg. Property Price Avg. Airbnb Rates Airbnb Occupancy Rates
$416,000 $259 48%

The USA is known far and wide as one of the best countries for real estate investment, and the same applies to the Airbnb mode. One of the primary reasons the US is so popular among Airbnb investors is its tax benefits, economic stability, and high rental rates

More than 79 million tourists visit the US each year, and nearly half as many go there on business, which is why Airbnb occupancy rates are as high as 80% in some states. But the best part about US Airbnb investing is that it’s easily accessible to anyone, regardless of your budget or origin. The US is incredibly welcoming to nonresident investors, and property prices can range from tens of thousands of dollars to millions, depending on the state. However, you will need to consider what are the best cities in the US for foreign investment.

Here are some of the best cities to buy rental properties in the US:

  • New York
  • Orlando
  • Austin
  • Chicago
  • Milwaukee

Want to invest in Airbnb in the US but don’t know where to start? NRI’s network of agents across all 50 US states can help you find and close the best deals for your Airbnb investment with minimal hassle. Book a free 15-minute call and learn how our team can help you reach your investment goals.

Montenegro is the latest addition to the list of best countries for airbnb investment

4. Montenegro

Avg. Property Price Avg. Airbnb Rates Airbnb Occupancy Rates
$143,000 $70 29%

Montenegro is a small country in the Balkans that relies on tourism as its primary source of income, thanks to its beautiful Adriatic coastline. The country’s tourism industry has been booming recently, with over 2 million tourists visiting Montenegro each year. 

Due to its economic reliance on tourism, the country has lenient short-term rental laws, making it an excellent place for Airbnb investors. Although the country-wide average Airbnb rates are around $46, the prices go up to $150/night in coastal towns, especially during peak season (June–August).

Some of the best places to buy Airbnb property in Montenegro are the following:

  • Budva
  • Kotor
  • Herceg Novi
  • Tivat
Mexico is a popular country for investing

5. Mexico

Avg. Property Price Avg. Airbnb Rates Airbnb Occupancy Rates
$92,000 $68 56%

Mexico is an underrated country for Airbnb investors, but it’s well worth considering. The country sees over 50 million tourists each year and has year-round demand for accommodation due to its warm climate. 

Another thing that makes Mexico attractive for a short-term rental business is its lenient regulations and affordable real estate. In fact, this country has one of the cheapest property prices on this list while still sporting high occupancy rates.

Some of the best cities to buy an Airbnb property in are the following:

  • Mexico City
  • Playa del Carmen
  • Cancún
  • Guadalajara
Brazil is popular for Airbnb investing

6. Brazil

Avg. Property Price Avg. Airbnb Rates Airbnb Occupancy Rates
$118,000 $63 48%

Although Brazil’s tourism suffered a lot during the COVID-19 pandemic, it has since returned to and even surpassed its previous highs. In 2023, over 6 million tourists visited Brazil thanks to its diverse geography, famous landmarks, and gorgeous beaches.

On top of that, more and more people are choosing to emigrate to Brazil due to its low living standards and affordable property prices. So if you’re looking for a country with a low barrier to entry for Airbnb investment, Brazil is a fantastic choice.

Here are some of the most popular cities for Airbnb investing in Brazil:

  • Rio de Janeiro
  • São Paulo
  • Porto Alegre
  • Salvador
Greece is a very good country for airbnb investing

7. Greece

Avg. Property Price Avg. Airbnb Rates Airbnb Occupancy Rates
$312,000 $207 48%

Greece is one of the European countries with the biggest historical heritage in the world. On top of that, the country borders three different seas and encompasses hundreds of small-to-large islands.

Greece is likely one of the most popular tourist destinations in Europe, having over 7 million visitors each year. That alone makes it one of the most lucrative places to invest in Airbnb in Europe. 

Investors who buy property in Greece can expect high rental yields and occupancy rates throughout the tourist season. However, property prices in some places in Greece can be quite steep because of that. However, if you can afford to build a house instead of buying one, that would be a great option since Greece has some of the cheapest land in the world.

Some of the best places to buy property in Greece are the following:

  • Santorini
  • Crete
  • Thessaloniki
  • Zakynthos
  • Athens
Colombia is great for airbnb investing

8. Colombia

Avg. Property Price Avg. Airbnb Rates Airbnb Occupancy Rates
$77,000 $62 55%

Colombia is a small South American country that’s been gaining popularity among real estate investors over the last few years. The reason is its exceptionally low property prices and booming tourism sector.

As of 2023, more than 1.4 million tourists visit Colombia each year, and the tourist season lasts for a whopping six months. Thanks to the low competition in the Airbnb market, that results in exceptionally high occupancy rates during peak season (~93%).

If you’re looking for an affordable but lucrative country to invest in, Colombia is likely your best bet.

Here are the top cities to invest in Airbnb in Colombia:

  • Cartagena
  • Bogotá
  • Santa Marta
  • Medellín
NRI can help you finance your property investment

Need Help Financing Your Airbnb Property?

Although the above countries are fantastic places for Airbnb investors, one stands above all else — the US. The USA is the best choice due to its economic prowess and market stability. Although property prices in the States are far from the cheapest, its real estate market has been growing for over a decade now, and the country is incredibly open to foreign investors.

But even if the US market is outside your budget, don’t worry — getting an investment loan as a foreigner is easier than you may think (you don’t even need a credit score). And that’s where the NRI team can help you immensely. 

Here at NRI, we specialize in helping foreign investors secure funding for and buy property in the US. We are a licensed mortgage broker across all 50 States and have helped dozens of foreign investors secure mortgage and investment loans for Airbnb properties in America.

Our CEO, Luka Malkovich, is a nonresident investor himself and has used all the tactics he teaches to grow his own investment portfolio. If you need help to secure funds or need someone to guide you through the entire investment process, why not jump on a free 15-minute discovery call with Luka and tell him more about your investment goals?

Subscribe to our newsletter

10 Best Cities for Airbnb Investing in the US

Real estate investors worldwide have been experimenting with the best cities for Airbnb investing lately and for a good reason. Even though investing in short-term rentals comes wi ...

Best Place to Buy a House in the USA Under $300K

As of 2023, the value of the entire US real estate market has reached a record high of 47 trillion dollars. Because of that, many people (both foreign and domestic) are looking to ...