Which Countries Have the Highest Rental Yields?
Quick Answer
Bali tops the charts at 8-10% gross. Thailand follows at 6-8%, Mexico at 5-8%. In Europe, Bulgaria and Greece lead at 5-7%.
Yield chasers, pay attention. The math is simple: rental income divided by property cost equals yield. Where property prices are low relative to tourism demand, yields spike. That's why Southeast Asia dominates this category.
Bali leads globally with 8-10% gross yields. A €150K villa can rent for €12-15K annually to vacationers. The numbers work because property prices haven't caught up to the island's explosive tourism growth. Canggu and Seminyak drive the highest rates. The catch: foreigners can only hold leasehold (typically 25-30 years, renewable), not freehold. That's a meaningful constraint for some investors.
Thailand follows at 6-8%. Phuket and Koh Samui villa rentals perform best. Bangkok condos yield lower (4-5%) but with higher occupancy and less seasonality. Foreign ownership is condo-only since you can't own Thai land.
Mexico's Riviera Maya and CDMX hit 5-8%. Tulum and Playa del Carmen are booming with American remote workers. The fideicomiso trust structure for coastal property adds complexity but works fine in practice.
In Europe, Bulgaria punches above its weight at 5-7%. Sofia city apartments and Black Sea vacation rentals both perform. Low purchase prices are the driver - you can buy a rental-ready apartment for €50K. Occupancy is the wildcard.
Greece delivers 5-6%, strongest in Athens and the major islands. The €250K Golden Visa minimum can actually cash flow, unlike Portugal's €500K where you're buying for appreciation more than income.
Portugal and Spain settle in at 4-6% and 4-5% respectively. Mature markets with higher property prices mean lower percentage yields, but these are stable, liquid markets with predictable demand.
Now the reality check: gross yield isn't what lands in your pocket. Short-term rental management eats 15-25%. Vacancy runs 30-40% in seasonal markets. Taxes range 15-30% of rental income depending on country. Maintenance costs roughly 1-2% of property value annually.
A 10% gross yield in Bali might net 5% after all expenses. Still excellent, but don't confuse the headline number with real returns.