To help you make an informed decision regarding the purchase of an investment property abroad, we have compiled a comprehensive and detailed comparison of the most popular countries for overseas real estate investment among Israeli investors—Greece, Cyprus, Portugal, the United States, Dubai, and Romania. We’ll compare key parameters (returns, prices, taxation, financing, proximity to Israel), highlight the notable pros and cons of each destination, and provide a practical example from the Athens market. Who is each destination best suited for—and when should you be cautious?
What Determines Whether an Overseas Real Estate Investment Is Worth It?
Before delving into specific examples and countries, it’s important to examine the critical factors that influence the viability of investing in overseas real estate. The question isn’t just about understanding where to buy, but how to thoroughly evaluate the entire transaction.
The Critical Factors an Israeli Investor Should Consider
True return is measured after expenses —this is the most important factor. A high yield on paper does not guarantee a high net yield. You must consider all expected expenses: mortgage, ongoing taxes, maintenance, property management, and brokerage fees. In some cases, an 8% yield on paper can turn into a 4% net yield after all expenses are taken into account.
The entry price sets the threshold for investing. A low entry threshold allows for risk diversification across multiple properties, which reduces exposure to any single property. Depending on the region, the property, and the management approach, prices within the same country can vary significantly depending on the specific location.
Taxes have a significant impact on the net return. Purchase tax, rental income tax, and capital gains tax—each of these reduces the actual return. It is important to check whether there is a tax treaty with Israel that prevents double taxation.
Economic and political stability affects a property’s growth potential over time. A stable market with a strong economy offers fewer risks, but usually also lower returns. In developing countries with high growth rates, returns can be higher, but the risk is also greater.
Geographical accessibility —proximity to Israel makes it easier to manage and oversee the property. A short flight allows for frequent visits, supervision of maintenance work, and rentals to Israeli tourists.
Benefits for foreign investors —Golden Visas, tax treaties, and tax exemptions—can significantly enhance the profitability of investing in overseas real estate. Golden Visa programs allow applicants to obtain residency in the European Union or in select countries, which serves as an “added benefit” to the investment. However, as of now, there are almost no countries left that offer Golden Visa eligibility pathways based on real estate investment, apart from Greece.
The Real Need of the Israeli Investor
What is an Israeli investor really looking for when considering an overseas real estate investment? After analyzing many diverse markets, three key needs can be identified:
Risk diversification is one of the most significant advantages. Investing in several different geographic markets reduces dependence on any single economy and allows investors to protect themselves against local shocks. In recent years, given the security situation in Israel, many have found themselves exploring investment opportunities abroad, particularly in nearby countries such as Cyprus and Greece.
Higher returns than in Israel —while the average return on residential apartments in Israel is only about 2.5%, in various countries abroad it can reach 5%–12%. The difference is significant and allows investors to increase the real estate portion of their investment portfolios.
Accessibility and Proximity – Countries in the Mediterranean basin are close to Israel, which makes it easier to manage the property. Greece, for example, is only a two-hour flight away, allowing for frequent visits and oversight of the property.
Complete Comparison Table: Key Metrics in 6 Popular Investment Destinations for Israelis
| Romania | Dubai | Cyprus | Portugal | United States | Greece | Parameter |
| 7%–12% | 6%–10% | 6%–10% | 8%–12% (on equity) | 4%–7% | 4%–8% | Average Annual Return (Gross) |
| €50,000–€100,000 | €350,000+ | €1,500 | €75,000 for the entire apartment | $200,000–$400,000 | €2,200 per square meter (in Athens) | Entry Price (per square meter) |
| 0% | 0%–5% | 3%–8% | 0%–6% | 0%–2% (depending on the country) | 3.09% | Purchase Tax |
| 10% | 0% | 20% exemption (up to 85,000 €) | Exemption After 10 Years | 15%–30% | Exemption (up to 2 apartments/2 years) | Capital Gains Tax |
| 10% | 0% | 0%–20% | 28% | 10%–37% | 15%–45% | Income Tax on Rent |
| Does not exist | €475,000 | €300,000 | Does not exist in real estate investments | €500,000 (EB-5) | €400,000–€800,000 (€250,000 under certain circumstances) |
Golden Visa |
| ~3.5-hour flight | ~3.5-hour flight | 40–60-minute flight | ~4-hour flight | ~12-hour flight | 1.5–2.5-hour flight | Closeness to Israel |
| Exists | Does not exist | Does not exist | Does not exist | Does not exist | Exists | Tax Treaty with Israel |
| 50% | 50%–60% | 50% | Up to 75% | Up to 80% | 50%–60% | Funding for Foreign Investors |
| Leo Romani | Dirham, United Arab Emirates | Euro | Euro | dollar | Euro | Currency |
| Developing | Posture | Posture | Posture | Posture | On the rise | Economic Stability |
| Exists | Does not exist | Exists | Exists | Does not exist | Exists | European Union Member States |
Greece – Pros and Cons
Key Benefits of Investing in Real Estate in Greece:
Entry prices are low compared to capital cities in Western Europe. Athens offers apartments priced at €2,200 per square meter, allowing investors to enter the market with a low initial investment. There is high growth potential in property values—the Greek market is recovering from the 2008 crisis, with steady price growth.
The capital gains tax exemption is one of the key benefits for Israeli investors. An exemption on the sale of up to two apartments within two years maximizes nominal profit. Attractive rental yields of 4%–6.5%, depending on location.
The tax treaty with Israel prevents double taxation—rental income and capital gains are taxable only in Greece, not in Israel. This is a significant advantage that sets Greece apart from other European countries.
A strong tourism market supports revenue from short-term rentals (Airbnb). Greece attracts millions of tourists every year, ensuring constant demand for vacation rentals. Despite increasingly strict restrictions on short-term rentals, there are developers offering investment properties that can be rented out on a short-term basis.
The Golden Visa offers a pathway to residency in the European Union with an investment threshold of €400,000–€800,000, depending on the region. There are also types of properties for which the investment threshold is €250,000—properties designated for preservation or rezoning.
Proximity to Israel —a flight of just 1.5–2.5 hours—allows for easy access, frequent visits, and oversight of the property.
Notable Disadvantages of Investing in Yon:
Political and Economic Uncertainty – Despite recent improvements, Greece is still experiencing political instability that could affect the market.
Dependence on the region, the property, and the management approach —in tourist areas, there are seasonal fluctuations in demand.
Currency risk for Israeli investors, as the currency is the euro.
Limited funding —50%–60% for foreign investors, less than in Portugal and the U.S.
Cyprus – Pros and Cons
Key Benefits:
High returns —6%–10% on average, the highest among neighboring European countries. Especially for beachfront tourist properties, returns can reach 5%–8%.
Maximum geographical proximity —just a 40- to 60-minute flight, making it the closest to Israel. This is a significant advantage for investors seeking accessibility and connectivity.
Low-tax environment – 12.5% corporate tax rate (the lowest in Europe), tax exemption on dividends for foreign investors. No personal income tax on residential rental income in certain cases.
Low-threshold Golden Visa – a minimum investment of €300,000, the lowest among European Union countries.
Economic stability —unemployment is close to zero, GDP is steadily rising, and the market is stable with fewer political risks.
Notable Disadvantages:
Small market size —1.3 million people—and limited supply. In a small country, growth potential is limited compared to larger countries.
There is no tax treaty with Israel —this poses a risk of double taxation, which reduces the net return.
Capital gains tax – 20% (although there is an exemption up to 85,000 euros), which reduces the profit from the sale of the property.
Portugal – Pros and Cons
Key Benefits:
Highest returns —8%–12% on equity. With financing of up to 75%, the return on equity can reach 12%.
Extensive financing – up to 75% financing at favorable interest rates (~3.5%–4%), enabling market entry with low equity.
Capital gains tax exemption after holding the property for 10 years, which maximizes long-term profits.
High quality of life – a thriving tourism industry, a market open to foreign investors, and a high level of security.
Low equity – You can get started with as little as €75,000 (less than 300,000 NIS).
Notable Disadvantages:
Geographical distance – ~4 hours by plane, farther than Greece and Cyprus.
No tax treaty with Israel —risk of double taxation.
High rental tax —28% for foreign investors—which reduces the net return.
Prices Near Record Highs – Estimates suggest that prices in Portugal are near record highs, which limits the potential for appreciation.
The United States – Pros and Cons
Key Benefits:
Maximum economic stability – The U.S. offers the most stable market, with a robust economy and fewer political risks.
A wide range of real estate options —apartments, houses, land, commercial properties—allowing you to choose from a wide variety.
Relatively high expected returns on real estate in Israel —4%–7%—higher than the 2.5% in Israel.
Wide range of investment options —you can invest in different countries, different cities, and different types of properties.
Property prices are much lower than in Israel, and it’s possible to find land at rock-bottom prices.
Extensive financing – up to 80% financing for foreign investors.
Notable Disadvantages:
Significant geographical distance —about a 12-hour flight—which makes it difficult to manage and oversee the property.
Currency risk – The dollar is expected to remain stable, but fluctuations in the dollar-shekel exchange rate could have an impact.
Complex taxation —capital gains tax 15%–30%, income tax 10%–37%; rental laws vary by state.
No tax treaty with Israel —risk of double taxation.
Dubai – Pros and Cons
Key Benefits:
No local taxes —no personal income tax, corporate tax, or capital gains tax. This is a significant advantage that allows you to maximize your returns.
Some of the highest returns in the world —6%–10% gross, and even 10%–12% with Airbnb in tourist areas.
A rapidly growing market —with economic and political stability, and strong demand from millions of residents and tourists.
A relatively low barrier to entry —with high profit potential and relatively low risk.
Geographical proximity – ~3.5 hours by plane, good access to Israel.
Regulatory support from the Dubai government, which encourages foreign investors.
Notable Disadvantages:
High entry costs – Property prices in Dubai are relatively high compared to other investment destinations, at over 350,000 euros.
Risk of oversupply – the danger of building too many apartments in a short period of time, which could lead to an oversupply.
Market Volatility – The real estate market in Dubai is experiencing volatility, with the potential for price declines.
No tax treaty with Israel —risk of double taxation.
Romania – Pros and Cons
Key Benefits:
Attractive prices —significantly lower than the average price of a property on the Israeli market, ranging from €50,000 to €100,000.
High average return —7%–12% per year, higher than the Israeli market.
Investor-friendly tax policy —10% income tax, 10% capital gains tax—one of the most investor-friendly policies for foreign investors.
Tax Treaty with Israel – Prevents double taxation and protects Israeli investors.
Growth Potential – The Romanian economy is developing rapidly, with growth rates higher than those of the European Union.
Membership in the European Union —provides stability and economic security.
Notable Disadvantages:
Political Instability – Romania has experienced periods of political instability, which could affect the economy.
Complex bureaucracy – The processes of purchasing and registering property can be complicated and time-consuming, especially for foreign investors.
Exchange Rate – Fluctuations in the Romanian leu’s exchange rate against the euro or the dollar may affect the value of your investment.
Cultural Differences – Understanding the local market and Romanian business culture can be a challenge.
A Practical Example: Investing in an Apartment in Athens, Greece
| Value | Detail |
| €350,000 | Property Value |
| Downtown Athens | Location |
| Long-Term Rental | Type of Rental |
| 4%–5% per year | Expected Return |
| €10,815 (3.09%) | Purchase Tax |
| Tailored to minimize tax liability | Investment Structure |
Real return is measured after expenses —in this case, under the Israel-Greece tax treaty, rental income is taxable only in Greece (15%–45%, progressive), but there is a reporting requirement in Israel.
Who is this for?
Greece may be a good fit for investors looking for a combination of affordable entry prices, tourism, and an efficient tax system:
| Why Is It a Good Fit? | Investor Type |
| The tax treaty with Israel prevents double taxation | Investors seeking stability and tax certainty |
| Low entry prices, high growth potential | Investors with equity (€150,000–€400,000) |
| A Path to European Residency | Investors interested in the Golden Visa |
| A strong tourism market supports short-term rentals | Tourism Investors |
Cyprus is ideal for investors seeking maximum proximity:
| Why Is It a Good Fit? | Investor Type |
| 40–60-minute flight – the closest | Investors looking for maximum proximity to Israel |
| 6%–10% return, a strong economy | Investors looking for high returns and stability |
| Low Golden Visa Threshold | Investors with equity (€150,000–€300,000) |
Portugal is suitable for investors with limited capital:
| Why Is It a Good Fit? | Investor Type |
| Financing of up to 75% makes it possible to get started with little capital | Investors with limited capital (€75,000+) |
| 8%–12% – the highest among all countries | Investors seeking the highest possible return |
| Capital Gains Tax Exemption After 10 Years | Long-term investors (10+ years) |
The U.S. is suitable for investors seeking maximum stability:
| Why Is It a Good Fit? | Investor Type |
| A strong economy, fewer political risks | Investors looking for a very stable market |
| Prices are cheaper than in Israel | Investors with equity ($200,000+) |
| A wide range of properties and countries | Investors interested in diversifying their investments |
Dubai is suitable for investors seeking high returns with zero taxes and high risk:
| Why Is It a Good Fit? | Investor Type |
| No income tax, no capital gains tax | Investors looking for zero taxes |
| High entry costs, but high returns | High-net-worth investors (€350,000+) |
| Strong tourism market, Airbnb 10%–12% | Tourism Investors |
Romania is suitable for investors with limited capital who are looking for high returns and high risk:
| Why Is It a Good Fit? | Investor Type |
| Low prices, 7%–12% return | Investors with limited capital (€50,000+) |
| A tax treaty with Israel prevents double taxation | Investors looking for a tax treaty |
| A rapidly developing economy | Investors interested in growth potential |
What should you watch out for?
Please review carefully before investing:
| When to Be Careful | Risk |
| If you're concerned about exposure to the euro, dollar, or yuan—all countries with currency risk | Currency Risk |
| In tourist areas in Greece – demand varies by season | Seasonal Fluctuations |
| In Portugal, Cyprus, the U.S., and Dubai—Risk of Double Taxation | There is no tax treaty |
| In Portugal – Prices Are Expected to Approach Record Highs | Prices are nearing record highs |
| In Cyprus – a small market (1.3 million people) | Limited market |
| In Romania – Complex Procurement Processes | Complicated Bureaucracy |
| In the U.S. – a 12-hour flight; remote management is difficult | Geographical Distance |
Summary: How to Choose the Right Country?
The question isn't just where to buy, but how to evaluate the deal. Before making a decision, it's important to check:
- Look for supply and demand trends in potential countries
- Find out about supply and demand trends in those destinations
- Review property prices in the relevant locations
- Assess potential risk factors at each destination
- Calculate the total costs, including maintenance, taxes, and management
- Plan Your Taxes Early —Especially in Greece and Romania, Where There Is a Tax Treaty
Greece may be a good fit for certain investors, but not for everyone. Cyprus offers high returns with maximum proximity; Portugal offers the highest returns with extensive financing; the U.S. offers stability; Dubai offers zero taxes, high returns, and high risk, and Romania offers low prices with high returns and instability—but each destination requires separate consideration.
One of the best decisions you can make when preparing to invest in overseas real estate is to enrollin an overseas real estate course, which provides you with the tools to analyze transactions and potential risks.
Investing in overseas real estate is no simple task; it requires expertise in a variety of economic, financial, and legal aspects. It is important to examine all relevant factors before making a decision. Each destination must be thoroughly evaluated; in some cases, a high return on paper does not translate to a net return, and depending on the region, the property, and the management approach, the same country can offer completely different returns.
Questions and Answers
Is every overseas real estate investment suitable for every investor?
No. Every investor has a different profile in terms of available capital, risk tolerance, and financial goals. Before choosing an investment goal, it’s important to understand what you’re looking for—current returns, long-term appreciation, risk diversification, or a combination of all of these.
What is the difference between the theoretical yield and the actual yield?
The return on paper is the theoretical potential before expenses. In practice, taxes, management fees, maintenance costs, and commissions can cut it in half. It’s always a good idea to calculate what you’ll actually end up with.
Do You Need to Be a Real Estate Expert to Invest Abroad?
Not necessarily, but you need to understand the basic factors—taxation, financing, property management, and market risks. Working with local professionals and experienced advisors can help you avoid costly mistakes.
How much equity do you need to get started?
It depends on the investment objective and strategy. Some markets allow entry with relatively little capital—especially when using financial leverage—while others require a higher initial investment. In most cases, the less capital you have, the more important it is to make the right choice.
Should I manage the property on my own or through a management company?
Self-management may save money, but it requires time, language skills, and physical access. A remote property almost always requires professional management—which affects the return on investment and must be taken into account in advance.
