International property investment: 7 markets compared
Seven markets on the same denominator: purchase costs, financing, currency and management. What to compare first, and which market fits which strategy.
Updated on 9 August 2026.
What changes when you buy across a border?
Four things: the purchase costs, the financing, the currency and the management. Purchase costs swing between about 2% of the price in the United States and 14% in New South Wales once the foreign buyer surcharge applies (2026). Lenders almost everywhere give a non-resident less. And your return finally settles in your own currency, not the local one.
Seven markets side by side
This table is the heart of the article. Every row answers the same five questions, so the columns stay comparable. The purchase cost percentages are totals: transfer tax or stamp duty plus notary, registry and agency where the buyer pays it.
| Market | Purchase costs, % of price | Common non-resident loan | Gross rental yield | Tax on rental income | Biggest pitfall |
|---|---|---|---|---|---|
| Netherlands | 10-12% (8% transfer tax, 2026) | 60-70% | 4-6% | Box 3: 6.00% deemed return taxed at 36% (2026) | A points system caps the rent you may legally charge |
| United Kingdom (England and Northern Ireland) | 7-11% (SDLT 0-12% plus 5% additional property plus 2% non-resident) | 60-75% | 4-7% | Income tax on net rent; Section 24 limits interest relief to a 20% credit | Section 24 makes high leverage expensive |
| United States | 2-5% (no national transfer rate; set by state and county) | 50-70% | 4-7% | Federal and often state income tax; 27.5-year depreciation | Property tax varies by county and can exceed 2% a year |
| Spain | 10-13% (ITP 6-13% by region, or 10% VAT plus AJD on new build) | 50-70% | 4-7% | EU resident 19% of net rent; non-EU 24% of gross rent | The tax base is the valor de referencia, not your price |
| Dubai (United Arab Emirates) | 6-7% (4% Dubai Land Department plus registration and agency) | 50-65% | 6-8% | No personal income tax in the UAE | Service charges per square foot eat the high yield |
| Switzerland | 1-5% (transfer tax 0-3.3% by canton plus notary and register) | 50-65% | 2-4% | Rent is taxable income: federal, cantonal and municipal | Non-resident purchase is restricted; test the scope locally |
| Australia (New South Wales) | 4-5%, or 13-14% with the 9% foreign surcharge | 60-70% | 3-5% | Foreign resident pays 30% from the first dollar (2025-26) | Non-resident purchase is restricted; test the scope locally |
Transfer tax and stamp duty rates come from the BRIX Calc rulesets, position 2026. The yield and lending ranges are indications, not norms.
Why a comparison only works with the same denominator
A yield is a fraction. Change the denominator and the answer changes without anything changing about the building. That is exactly where a country comparison falls apart.
In the United Kingdom the conventional net initial yield puts purchase costs in the denominator. The American cap rate does not. So a British 5.0% and an American 5.0% are not the same thing: the British property is the more expensive one.
Take the $312,000 duplex from the US article, with $20,904 of net operating income and $6,297 of closing costs.
net initial yield = 20,904 / 318,297 = 6.57%, against a cap rate of 20,904 / 312,000 = 6.70%
| Measure | Denominator | What it means |
|---|---|---|
| Gross rental yield | Purchase price | Ignores every acquisition cost |
| Net initial yield, UK convention | Price plus purchase costs | Lower than a cap rate on the same building |
| Cap rate, US convention | Purchase price or value | Higher than a UK net initial yield on the same building |
| Cash-on-cash return | Equity actually invested | Moves with leverage, so it is not a property measure |
Pick one denominator and hold it across all seven markets. The comparison is only worth making after that.
Purchase costs: the spread runs from 2% to 14%
Acquisition cost is the one number that differs by a factor of seven across this set. It is also the number people leave out of a quick yield calculation, which is why the same building can look cheap in one spreadsheet and expensive in another.
| Market | Largest single item | What it means |
|---|---|---|
| United States | Loan origination fee | Scales with the loan, not the price; no national transfer tax |
| Switzerland | Cantonal transfer tax | Zero in seven cantons, up to 3.3% elsewhere |
| Dubai | 4% Dubai Land Department fee | Fixed rate, formally shared but paid by the buyer |
| Australia, resident buyer | Banded transfer duty | 4.5% marginal above A$387,000 in New South Wales |
| United Kingdom | Stamp duty plus surcharges | Surcharges apply to the whole price, not the top slice |
| Netherlands | 8% transfer tax | One flat rate, no bands, charged on the price |
| Spain | Regional ITP | 6% to 13% depending on which of seventeen regions |
Costs above the price are not recoverable. They come straight off your day-one return, and in a high-cost market they take a year or more of rent to earn back.
How lenders treat a non-resident
Every market in this set lends a non-resident less than a local borrower. The ranges in the main table are the ones commonly quoted, not entitlements, and a lender that has never heard of your income source may simply decline.
Three things move the answer more than the country does. Where your income is earned and in what currency. Whether you already own property in that market. And whether you are borrowing personally or through a company, which in the United Kingdom changes the tax treatment as well as the rate.
Assume a lower loan-to-value than you would get at home, then test what happens if the lender comes back one band lower still.
Currency: your return settles at home
You collect rent in one currency and measure success in another. That gap is a real position, and it is usually larger than the yield difference you were comparing in the first place.
Two of these markets carry a hidden version of it. The dirham has been pegged to the US dollar at 3.6725 since November 1997, so a Dubai property is a dollar exposure rather than a dirham one. The Swiss franc moves independently and has historically strengthened, which cuts both ways depending on which side of the trade you are on.
Run your return twice: once in the local currency and once in your own. If the two answers lead to different decisions, the currency is the investment.
Which market fits which strategy?
Match the market to what you actually want, because these seven are not competing for the same investor.
| If you want | Look at | What it means |
|---|---|---|
| Monthly cash flow | Dubai, the US Midwest | Higher yields, but service charges or property tax decide the outcome |
| Capital growth over cash | Australia, Switzerland | Low running yields; the return sits in the value and the exit |
| Tax deferral on reinvestment | United States | The 1031 exchange rolls a gain into the next US property |
| Predictable entry cost | Netherlands | One flat transfer rate, no bands and no regional variation |
| Structuring flexibility | United Kingdom | Personal name or limited company changes the whole tax outcome |
Read the market article before you model it. Each one carries a worked case in local currency, with the local cost lines named.
Start with the Netherlands, the United Kingdom or the United States. Then compare Spain, Dubai, Switzerland and Australia. For the calculator side, start at international investing.
Frequently asked questions
Which market has the lowest purchase costs?
The United States, at roughly 2% to 5% of the price. There is no national transfer tax, so the largest closing item is usually the loan origination fee. Switzerland can be lower still in the cantons that abolished transfer tax, where the tool applies only notary and register charges of 0.4%.
Can I get a mortgage abroad as a non-resident?
Usually yes, but at a lower loan-to-value than a local buyer. The bands in the table above run from 50% to 75% depending on the market. Expect more documentation, a longer process and a rate premium. Some lenders will not lend at all without income in that country.
Are there markets where a foreigner cannot buy at all?
Two in this set restrict it. Switzerland limits residential purchases by non-residents under Lex Koller, with permits granted mainly for holiday homes under quota. Australia has banned foreign purchases of established dwellings since 1 April 2025, extended in the 2026-27 budget to 30 June 2029. New builds stay open.
Do I pay tax twice on foreign rental income?
Usually not twice in full, because double tax treaties allocate the right to tax and give relief. How that works depends on the treaty, your residence and the structure you use. The country that the property sits in almost always taxes first. Put your own position to an adviser in both countries.