Best overseas property destinations for UK investors: Greece, Cyprus or Italy?

With political uncertainty in the UK and domestic yields under pressure, many landlords are now turning their attention overseas. But in 2025, where should British investors look for strong returns, affordable entry points, and long-term lifestyle value?

Southern Europe continues to offer a tempting mix of sunshine, tax incentives, and accessible property markets. In this edition of our Overseas Property Spotlight, we focus on three of the most popular destinations for UK buyers: Greece, Cyprus, and Italy.

Greece: still golden—but act fast

Pros:

• Competitive Golden Visa scheme (€250,000 threshold in many areas)
• Low property prices in up-and-coming markets like Thessaloniki and Crete
• 7% flat tax for foreign retirees (under certain conditions)
• Strong tourism market for short-lets

Cons:

• Bureaucratic legal and planning system
• Foreigners cannot buy near military zones or border regions

Yield potential: 4%–6% in urban areas, higher in short-let coastal zones

2025 insight: Greece has confirmed new visa zones where the threshold jumps to €500,000 in tourist hotspots like Athens and Mykonos. Move quickly to lock in lower limits elsewhere.

Spain threatens 100% property tax on Britons buying second homes

Cyprus: tax-friendly and English-speaking

Pros:

• No inheritance tax
• Low property tax and 12.5% corporation tax
• Dual-language legal system (English widely spoken)
• Easy access from UK with strong expat infrastructure

Cons:

• Capital appreciation slower than mainland Europe
• North Cyprus properties carry extra legal risk

Yield potential: 3.5%–5% in cities like Limassol, Nicosia and Paphos

2025 insight: With stability returning after Brexit and pandemic-era dips, British buyers are once again the dominant foreign group in Cyprus.

Anchor text: Thinking of buying abroad? The top spots still welcoming British property buyers

Italy: charm, tax reliefs—and one-euro homes?

Pros:

• Tax incentives in rural areas (up to 90% property tax discount)
• €100,000 flat tax for foreign high net worth individuals
• One-euro homes initiative still active in selected towns
• Lifestyle value is unmatched for many buyers

Cons:

• Renovation costs can be high
• Bureaucracy and regional variation in rules
• Rental yields are lower unless you’re in tourist centres

Yield potential: 2.5%–4.5% depending on location and usage

2025 insight: Many Italian communes are still incentivising foreign buyers with low-cost property and generous tax reliefs, especially in Sicily and the south.

The Italian Job – expert tips for navigating Italy’s €1 home initiative

Final verdict: pick your prize

For yield and capital growth? Try Greece.

For ease and long-term hold? Cyprus shines.

For renovation enthusiasts or lifestyle seekers? Italy wins on character.