Why Spain and Italy Are Losing Investors to Thailand
For decades, Spain and Italy dominated European property investment. That era is fading. Thailand now delivers higher rental yields, lower entry costs, and stronger growth than southern Europe can match.
Why Are Spain and Italy Losing Appeal?
Spain's Prime Minister Sánchez proposed a 100% tax on non-EU property buyers in early 2025 - a seismic shift. Italy struggles with depopulation outside Milan and Rome, and prices in secondary cities remain flat.
- Spanish gross rental yields: 4-5% in major cities
- Italy imposes local property taxes up to 1.06% of value annually
- Aging populations suppress domestic demand
- Heavy bureaucracy slows transactions in both countries
Why Is Thailand Beating European Markets?
According to Savills, Bangkok and Phuket prices rose 5-8% annually since 2022. A Bangkok condo starts at €80,000 - in Barcelona, that won't buy a studio.
- Phuket gross rental yields: 7-10%
- No annual property tax below 50 million THB
- Digital Nomad Visa and Long-Term Resident Visa fuel tenant demand
- Tourism generates ~20% of GDP, sustaining short-term rental markets
The math is simple. European investors seeking real returns are moving capital east. Thailand sits at the top of that list.
Get personalized property recommendations
Our advisor will prepare a selection of properties matching your criteria and budget.
- 3-5 hand-picked properties matching your criteria
- Full cost analysis and investment potential overview
- Free consultation with a dedicated advisor