At a time when real estate investors are looking for destinations that offer a balance between high yield and low tax costs, a recent study reveals that Central and Eastern European countries offer the best investment opportunities in 2025, with Moldova leading the way, followed by Lithuania and North Macedonia, according to a report by William Russell UK published by Euronews.

Moldova. Top destination for high yields

<Moldova, a small country in the Balkans, has proven to be one of the most promising real estate markets in Europe, topping the list of the most attractive countries for real estate investors in 2025. The report described its market as “emerging and rich in opportunities,” especially for investors who are willing to take on some risk in exchange for attractive returns.

According to the data, Moldova's real estate market is not yet ready for prime real estate investment. <According to the data, the cost of buying real estate in Moldova does not exceed 2.8% of its value, while the income tax on rent is only about 12%. The capital Chisinau supports this trend with growth in infrastructure, tourism and hospitality projects, boosting demand for short-term rentals. Although Moldova is not a member of the European Union, it is a candidate for accession, giving it greater political and economic appeal in the near future.

Lithuania. An investor-friendly environment

In second place, Lithuania is a favorite choice for investors looking for stability and sustainable growth. Despite a 10% annual rise in real estate prices through the fourth quarter of 2024, according to Eurostat data, the country still offers attractive rental yields.

<The annual yield reaches 6.39%, while purchase costs remain at just 4.1% of the property value. Lithuania has no restrictions on foreign ownership of real estate, further enhancing its long-term attractiveness.

Lithuania also has no restrictions on foreign ownership of real estate.

North Macedonia. Government support

North Macedonia moved up to third place, benefiting from a flexible legislative environment and clear investment incentives. Despite being a candidate country to join the European Union, the country is steadily improving its investment climate, especially in the capital Skopje, which is seeing an expansion of housing and commercial projects.

North Macedonia's average return on investment (ROI) has risen to third place, benefiting from a flexible legislative environment and clear investment incentives. The average annual rental yield is 6.47%, with tax incentives placing the country among the top emerging markets in Europe in terms of real estate attractiveness.

Additional options with promising prospects

The report shows that Serbia, Ireland and Latvia have annual rental yields in excess of 7%, which is categorized as “very good yield.”

In Ireland, the report shows that the rental yields in Serbia, Ireland and Latvia exceed 7%, which is categorized as "very good yield."

<In Ireland, rental yields are some of the highest on the continent, but high property taxes may put pressure on the final net yield. In contrast, countries such as Bulgaria, Andorra and Montenegro stand out as models that combine a high yield with a low tax burden, making them attractive options as well.

Italy High taxes don't hide opportunities

<Despite taxing rental income at up to 21%, Italy has the third highest rental yield in Europe at 7.56%, according to the report. The Italian market is suitable for investors who favor long-term strategies based on stability and strong tourism demand.

The Italian market is suitable for investors who favor long-term strategies based on stability and strong tourism demand.