Best European Countries for Real Estate Investment in 2025: Where Russians Can Safely Invest

Europe is a mosaic of real estate markets, each with unique economic, legal, and political characteristics. In this overview, we analyze each European country’s potential for real estate investment based on stability, returns, growth, regulations, and foreign access.
Europe offers a spectrum of opportunities for real estate investors, from emerging markets with high growth potential to established but highly regulated real estate sectors. Countries like Portugal, Spain, Greece, Croatia, Poland, and Georgia are particularly attractive today for those seeking returns without excessive entry costs.

Why Europe, in particular, remains a strategically interesting region for Russians, despite tensions and restrictions. The combination of legal protection, a stable currency, access to residency rights, and rental opportunities makes the continent more attractive than ever. Those who seek professional guidance and consider sanctions risks will find Europe a safe haven for long-term wealth and growth.

I describe several concrete reasons below:

There ‘s the aspect of capital protection and legal certainty. While certain sanctions temporarily restrict the assets of specific Russian individuals or entities in some EU countries, private individuals without political ties are still subject to the European legal order. This guarantees property rights, protection against expropriation, and access to legal redress – something less guaranteed in many other regions. Moreover, real estate investments can often be made through neutral structures such as Cypriot companies, trusts in Malta or Luxembourg, or real estate funds in Dubai, which provide access to European assets without direct exposure to sanctions risk.

The theme of diversification outside the Russian financial sphere also plays a role. By holding real estate in countries with stable currencies like the euro or the Swiss franc, Russian investors can diversify their assets outside the ruble zone. This offers a natural hedge against inflation, capital controls, or exchange rate risks within Russia itself. Furthermore, in countries like Spain, Austria, and Germany, real estate is often tied to long-term leases, which provides regular euro income – attractive for investors seeking passive cash flow outside Russia.

Access to residency programs and “golden visas.” A significant advantage for Russians investing in European countries is the investment or residency programs. Greece , Spain , Cyprus , and to a lesser extent Malta and Croatia , are the most accessible EU countries for golden visas through real estate as of 2025. However, under pressure from the EU, very strict restrictions have been imposed, and many Russians have recently fallen victim to fraudulent law firms both in Russia and Europe.

Hungary is developing a new state investment program that will be effective from the end of 2025. These programs often provide access to the entire Schengen Area, which can be a decisive factor for Russian families seeking flexibility or safe migration options.

There is increasing demand for rental properties in tourist and student cities. Due to the recovery of tourism and the internationalization of educational institutions, there remains strong demand for rental properties in cities such as Lisbon, Barcelona, Prague, Budapest, and Kraków. Russian investors can therefore benefit from short-term rentals to tourists via platforms like Airbnb (particularly attractive in Greece and Croatia). On the other hand, there is long-term rental to students or expats in cities with a strong university culture or IT sector (such as Vienna, Warsaw, or Tallinn).

Properties are easily resellable. In many European countries, real estate transactions are transparent, digitally registered, and in line with market conditions. For Russian investors, this means their property remains readily marketable, even if they or their structures come under pressure. Moreover, in Central European countries like the Czech Republic, Slovakia, or Slovenia, the costs of buying and selling are considerably lower than in Western Europe.

Finally, tax optimization through double taxation treaties. Many European countries have double taxation treaties with Russia, meaning that income from rental or sales is only taxed to a limited extent. There are also often deductions for costs, renovations, or depreciation, which increases net proceeds. I should add that since the sanctions wave after 2022, some of these treaties have been temporarily suspended, but optimizations remain possible through neutral structures.

I hereby provide an overview of countries in 3 categories, from very interesting investment climate to very risky

Category 1 : Very interesting to invest

1. France : Strong second-home market in Provence and the French Riviera. Paris and ski resorts are top-tier.
2. Italy : Interesting for holiday rentals and renovation projects in rural areas. Low purchase price, increasing tourism.
3. Spain : Popular with foreign investors, especially on the coast and in cities. The rental market is growing despite regulations.
4. Portugal : Very popular with expats and foreigners, especially Lisbon, Porto, and the Algarve. Tax-friendly climate.
5. Andorra : Tax-friendly, popular with the wealthy. Luxury real estate on the rise.
6. Monaco : Very exclusive market. Safe, but the barrier to entry is extremely high.
7. Malta : Sunny climate and attractive to expats. Restrictions for foreigners are minimal.
8. Greece : Strong recovery after the crisis. Attractive Golden Visa program and low prices.
9. Poland : Emerging market, rising prices, growing cities like Warsaw and Kraków. Interesting for rentals.
10. Czech Republic : Stable growth in cities like Prague. Foreign investment permitted.
11. Cyprus : Favorable tax climate. Interesting for luxury real estate and tourist rentals.
12. Estonia : Digital real estate market. Transactions made easy for foreigners. Rental
13. Hungary : Budapest is a hotspot for foreign investors. Low prices and good returns.
14. Romania : Low entry prices, but rising demand. Interesting for speculative investors.
15. Bulgaria : Coasts and ski resorts attract investors. Foreigners can own property through a company.
16. Croatia : Strong tourism. Coastal areas like Split and Dubrovnik are popular investment
17. Albania : Emerging destination on the Adriatic coast. Very low prices and growing tourism.
18. Serbia : Belgrade attracts expats and investors. Lower regulations and cheap access.
19. Montenegro : Strong in luxury real estate and Golden Visas. Adriatic coast remains popular.

 

Category 2 : Moderately interesting to invest / specific niches

1. Belgium : Stable market, but high property taxes and little appreciation. Interesting for urban rentals.
2. The Netherlands : Rental market regulation and rising costs are reducing investor interest, but cities like Amsterdam remain popular.
3. Germany : Historically stable, but recent regulations are impacting returns. Long-term rentals in major cities remain possible.
4. Ireland : High prices and rental restrictions in Dublin. Not for first-time investors, but solid long-term options.
5. Finland : Stable economy, but slow real estate market. Interesting for long-term investors.
6. Austria : Good second-home market in Alpine regions. The rental market in Vienna is highly regulated.
7. Slovakia Affordable entry, but small market. Bratislava attractive for rentals.
8. Slovenia : Small market, stable. Ljubljana and tourist regions interesting. market is growing.
9. Latvia : Riga offers opportunities, but the market is small and less liquid.
10. Lithuania : Emerging market, but less well-known among international investors. Long-term potential.
11. United Kingdom : After Brexit, London and Manchester remain attractive, but instability and tax increases are causing reluctance.
12. North Macedonia : Low prices, but limited market size. Little regulation.
13. Bosnia and Herzegovina : Low prices, but complex property rights and political instability.
14. Moldavia : Cheap, but weak legal certainty. Potential for early adopters.
15. Kosovo : Not recognized by all countries. Lower entry level, but political risk remains.
16. San Marino : Small market. Limited potential but stable.
17. Luxembourg : High prices, but stable. Suitable for asset protection more than active returns

Category 3 : Not recommended / very risky

1. Sweden : Highly regulated rental market. Buying property to rent out is difficult.
2. Denmark : Difficult for foreigners to buy real estate. No free rental market.
3. Norway : Strict rules regarding foreign ownership. The market is expensive, with little profit potential.
4. Switzerland : Very restrictive for foreign investors. Price increases are small.
5. Iceland : Small, closed market. Real estate not easily accessible to foreigners.
6. Vatican City : Not possible to acquire real estate.
7. Liechtenstein : Very small, closed market. Not suitable for regular investments