Which Countries Have the Best Rental Yields?

Look, I get it. You want your money working harder than you do on vacation. So let me break down where your property investment will actually generate serious returns.

Indonesia wins the global rental yield race. Bali specifically pulls 8-10% gross yields, which is borderline absurd compared to what you'd get in London (2.8%) or Paris (3.1%). The catch? Foreigners can only hold leasehold, not freehold. But plenty of investors accept that tradeoff for those numbers.

In Europe, the yield champions might surprise you. Bulgaria leads at 5-7% gross, mostly because property prices remain genuinely affordable. You can pick up a Sofia apartment for €60,000 that rents for €400 monthly. That math works out to 8% before expenses. Greece follows at 5-6%, with Athens apartments and island vacation rentals both performing well. The €250,000 Golden Visa minimum buys you something that can actually cash flow, unlike Portugal's €500K threshold where you're chasing appreciation more than yield.

Speaking of Portugal: yields run 4-6%, with Algarve tourist rentals at the higher end. Lisbon has compressed to 4% or below because prices climbed faster than rents. Spain sits similarly at 4-5%, though Costa del Sol short-term rentals can push 6% if you manage occupancy well.

Now for the reality check. Gross yield isn't what hits your bank account. Subtract 15-25% for management if you're doing short-term rentals. Factor 10-20% vacancy (higher in seasonal markets). Budget 1-2% annually for maintenance. You'll also pay income tax on rental revenue - rates vary from 15% in Portugal to 24% in Spain for non-residents.

So a "6% gross yield" in Greece might net you 3.5% after costs. Still beats a savings account, but set expectations accordingly.

My take: if pure yield is your goal and you can handle leasehold, Bali is hard to beat. For EU stability plus decent returns, Greece offers the best ratio of yield to entry cost. Portugal and Spain make sense when you factor in lifestyle value and long-term appreciation potential, even if the yields themselves won't blow your mind.