Real estate has always been a popular way to build wealth — and for good reason. But if you’re living in Ireland, you might be wondering: how can I invest not just here, but across Europe too?
The good news is that Irish investors today have more options than ever to invest in European real estate. Whether you want to own physical property or just get exposure to real estate markets, there’s a strategy that can fit your goals, budget, and risk tolerance.
Here’s a simple guide to the different ways you can start investing in real estate across Europe and get the best return for your Irish investment.
1. Buy Property Directly in Europe
The most traditional method: you purchase an apartment, house, or commercial building abroad.
Pros:
- Full control over the asset
- Potential rental income
- Property value growth over time
Cons:
- High upfront costs (deposit, taxes, legal fees)
- Managing a property remotely can be challenging
- Currency risk (if the country doesn’t use the euro)
Popular destinations for Irish investors:
- Spain (especially Costa del Sol and Alicante)
- Portugal (Lisbon, Porto, Algarve)
- France (Nice, Paris)
- Germany (Berlin, Frankfurt)
Tip: Always work with reputable local agents and legal advisors. Different countries have different rules for foreigners buying property, and taxes can vary a lot. Using local advisors can save you a lot of hassle when you decide to invest in European real estate.
2. Invest in Real Estate Investment Trusts (REITs)
Don’t want the hassle of managing a property? Consider REITs — companies that own income-producing real estate. You can buy shares in a REIT just like you would buy a stock.
Pros:
- Easy to buy and sell through your brokerage
- Lower minimum investment
- Instant diversification (some REITs own hundreds of properties)
Cons:
- You don’t control individual properties
- Subject to stock market volatility
Examples of European REITs:
- Unibail-Rodamco-Westfield (France)
- Vonovia (Germany)
- Klépierre (France, retail focus)
Many Irish brokers offer access to these on platforms like Degiro, Interactive Brokers, or even traditional banks.
3. Use Crowdfunding Platforms
Real estate crowdfunding platforms allow you to invest small amounts (often starting from €100–€1,000) into European property projects.
How it works: A developer needs money to fund a project. They raise it from many investors online. You either earn a fixed return or share profits when the project is completed.
Pros:
- Low minimum investment
- Access to developments across Europe
- Potential for higher returns
Cons:
- Higher risk (especially if the project fails)
- Less liquidity (your money may be locked up for several years)
Popular platforms for Europeans:
- Brickstarter (Spain)
- EstateGuru (Baltics and wider Europe)
- Reinvest24 (Estonia and other markets)
Always check if the platform accepts Irish investors and whether they are regulated.
4. Invest Through a European Property Fund
Property funds pool investors’ money to buy a diversified range of real estate assets across Europe. They’re usually managed by professional fund managers.
Pros:
- Professional management
- Diversification across countries and sectors
- Accessible via some pension or investment accounts
Cons:
- Management fees
- May have minimum holding periods
- Fund performance can vary
Look for European-focused funds offered by firms like BlackRock, Amundi, or Aviva Investors — often available through Irish financial advisors.
5. Buy Property via an Irish Company or Pension (Advanced)
For larger investors, it’s possible to invest through an Irish company or even use an Irish pension (like a Small Self-Administered Scheme, SSAS) to buy property abroad.
Pros:
- Potential tax advantages
- Professional structure for managing multiple investments
Cons:
- Higher setup and legal costs
- More complex (you’ll need accountants and legal advisors)
This strategy is best suited for people planning significant property investments (€100,000+) and who are willing to engage with legal, tax, and pension advisors.
Key Things to Watch Out For
- Taxes: Each country has different rules for rental income, capital gains, and inheritance tax.
- Currency risk: If the property is not in the eurozone, exchange rates can affect your returns.
- Legal differences: Some countries are very foreign-investor friendly (Portugal, Spain), while others (like Switzerland) have restrictions.
- Management: Managing property abroad can be tricky; consider hiring a professional property manager.
Top 4 European Countries for Real Estate Investment
1. Spain
Spain has been a favourite for Irish investors for years, particularly in coastal areas like Costa del Sol, Alicante, and Mallorca. After the 2008 crash, property prices plummeted, but they have steadily recovered—home prices grew around 5–6% annually between 2016 and 2022 in many regions. Rental yields vary widely: major cities like Madrid and Barcelona typically offer net yields of 3–4%, while short-term rentals in tourist areas can be much higher (up to 6–7%), especially with platforms like Airbnb. Spain’s Golden Visa program also made property investment attractive for non-EU investors, keeping international demand strong.
2. Portugal
Portugal, especially Lisbon, Porto, and the Algarve, has seen impressive real estate growth. Between 2015 and 2022, Lisbon property prices nearly doubled in some neighborhoods. Nationally, prices have been rising around 7–8% annually in recent years. Portugal offers strong rental yields: Lisbon and Porto have reported gross yields of around 5–6%, and demand for both long-term and short-term rentals remains robust, boosted by tourism and a steady influx of digital nomads. While new rental regulations are tightening, the fundamentals remain strong.
3. Germany
Germany’s property market is known for its stability rather than spectacular growth, but cities like Berlin, Hamburg, and Frankfurt have seen steady price increases. Berlin, for example, saw prices rise by over 10% annually during the boom years between 2016 and 2021, although recent cooling has brought the market back to more sustainable levels. Rental yields in Germany are lower than southern Europe—often around 2.5–3.5%—but tenancy is very common (over half the population rents), offering reliable long-term income and tenant security.
4. France
France offers a mix of luxury markets (like Paris and the Riviera) and more affordable rural opportunities. Paris property prices rose by an average of 4–5% annually over the past decade, although growth has slowed since 2022. Rental yields in Paris are modest (2–3%), but in secondary cities like Lyon or Toulouse, yields can reach 4–5%. France also benefits from strong tenant protections and a deep, liquid property market, making it attractive for investors seeking stability.