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Turkey vs. Spain vs. Dubai: Where Do Investors Earn More?

Turkey vs. Spain vs. Dubai: Where Do Investors Earn More?

Created25.02.2026, 16.39

Updated25.02.2026, 20.36

which country offers the strongest returns? In the global real estate arena of 2026, the traditional “buy and hold” strategy is undergoing a radical transformation. As central bank interest rate policies and geopolitical shifts redefine the concept of a “safe haven,” seasoned investors are moving beyond the simple question of “Where is more attractive?” and focusing instead on a far more precise calculation:

“After taxes, currency effects, and exit costs, where does my capital generate the highest net return?”

Which Country Offers the Strongest Net Returns for Foreign Investors?

“As TEKCE Real Estate, we simultaneously manage operations in five different countries. Here is what bank statements — not brochures — tell us about real profitability.”

As a global real estate company actively operating in Turkey, Spain, and Dubai at the same time, TEKCE’s unique position allows us to filter out marketing noise. We do not simply sell properties; we compare and analyze the true investment potential of different markets. This analysis explains in detail why capital is increasingly flowing toward the Gulf, while Europe and Eurasia assume distinctly different strategic roles.

1. Strategic Comparison: The 2026 Investment Matrix

Most real estate opportunities attract investors with promises of “6–8% gross yield.” However, investors do not spend gross income — they spend what remains after the state takes its share. And this is precisely where the difference between Dubai and its competitors turns into a massive gap.

To understand “take-home” ROI (Return on Investment), we must compare the regulatory and fiscal frameworks of all three countries side by side.

Criteria	Dubai (UAE)	Spain	Turkey
Rental Income Tax	0% (Exempt)	19% – 24%	15% – 40% (Progressive)
Capital Gains Tax	0% (Exempt)	19% – 28%	0% (After 5 Years)
Annual Property Tax	None	0.4% – 1.1%	0.1% – 0.6%
Currency / FX Risk	None (USD-pegged)	Low (EUR-based)	Medium – High
Golden Visa Status	Active & Fast	Cancelled (April 2025)	Citizenship Route Active
Average Net Yield	8% – 12%	3% – 4.5%	5% – 6%
Exit Speed (Liquidity	Very High (Global)	Medium (Local / EU)	High (Domestic Market)

Dubai’s Zero-Tax Advantage

Dubai remains a global anomaly. With 0% personal income tax on rental income and 0% capital gains tax, your gross return is effectively your net return.

Spain’s Fiscal Burden

Spain is transparent, but heavily taxed. Non-resident investors typically face rental income tax rates between 19% and 24%. When wealth tax (Impuesto sobre el Patrimonio) and maintenance costs are added, a 7% gross yield often declines to around 4.5% net.

Turkey’s New Valuation Era

With Turkey’s 2026 tax regulations, the narrowing gap between declared values and market values has turned rental income tax into a significant cost item for foreign investors.

2. The Currency Factor: Stability Backed by Exchange Rates

In international real estate investments, local currency fluctuations can play a decisive role in overall profitability. Dubai’s AED, pegged at 3.67 to the USD, offers investors a clear, predictable growth environment independent of currency volatility.

The Dubai Advantage

Buying property in Dubai is mathematically equivalent to holding a USD-denominated asset. This eliminates the risk of “earning in local currency but losing global purchasing power.”

Turkey’s Dynamics

Turkey offers strong potential for local price appreciation. However, for international investors, exit strategies must be perfectly timed to account for exchange rate volatility.

Spain’s Outlook

The Euro is a proven, strong, and stable global currency. Governed by the European Central Bank (ECB), Spain continues to serve as a reliable anchor for investors seeking Euro-denominated assets and integration into the European economy.

3. Residency & Visa Advantages: The Post-2025 Shift

“Ease of Entry” has become the key differentiator following recent regulatory changes.

As of April 3, 2025, Spain officially closed its real estate-based Golden Visa program. While investors can still purchase property under lifestyle or Digital Nomad visa routes, the door to “Residency Through Investment” is now closed.
In contrast, Dubai has further optimized its 10-Year Golden Visa, making it the smoothest market for investors seeking both high-yield assets and global mobility.

4. Liquidity & Exit: How Fast Can You Get Your Money Back?

“Paper profits only matter when they can be converted into cash.”

Dubai

With over 180,000 transactions in 2025, Dubai is one of the most liquid real estate markets globally. Apartments in prime areas often find buyers within 30 days.

Spain

There is a strong and steady demand driven largely by foreign buyers. However, converting sales into cash typically takes several months due to notary and official procedures.

Turkey

Thanks to high housing demand, Turkey offers a dynamic market where properties can be sold relatively easily. However, sales speed may fluctuate depending on mortgage interest rates.

Portfolio Diversification: Combining the Strengths of Different Markets

In the global economic climate of 2026, experienced investors clearly understand the risks of tying an entire real estate portfolio to a single country’s economic cycle. TEKCE’s multi-market experience shows that diversification is no longer a luxury — it is a necessity.

Risks of Single-Market Dependency

Regulatory Risk: Spain’s sudden cancellation of the Golden Visa caught thousands of investors unprepared. Turkey’s revised tax regulations unexpectedly altered cost structures. Holding assets across different regulatory systems prevents a single government decision from impacting the entire portfolio.

Currency Volatility: Dubai’s USD peg preserves global purchasing power, Spain’s Euro-based stability anchors the portfolio within the EU, while Turkey’s TRY-based market offers emerging-market growth potential. Together, this trio creates a natural hedge against currency shocks.

Market Cycle Divergence: Every real estate market follows its own cycle. While Dubai hit record highs in 2024–2025, other markets slowed. Exposure to different cycles stabilizes overall portfolio value.

Ideal Diversification Strategies

TEKCE’s 2026 analysis shows that experienced investors apply different allocation strategies based on their risk profiles:

Aggressive Growth-Oriented Investors

Allocate the majority of their portfolio to Dubai for maximum net yield and liquidity
Reserve a significant share for Turkey’s growth potential and citizenship opportunity
Maintain a balanced position in Spain for lifestyle and EU access

Balanced Preservation Profile

Center the portfolio on Spain’s EU security and long-term stability
Optimize exposure to Dubai’s tax efficiency and USD protection
Include Turkey for diversification and strategic positioning

Conservative Income-Focused Investors

Prioritize Dubai’s predictable cash flow
Value Spain’s long-term capital preservation
Use Turkey as a portfolio stabilizer

Geopolitical Risk Management

Each country offers distinct geopolitical advantages, which smart investors use as a risk management tool:

Dubai’s Neutral Position: The UAE’s balanced relations with both East and West act as a buffer during global tensions. Strong protection of property rights and international arbitration systems provides additional security.

Spain’s EU Umbrella: EU membership offers multi-layered legal protection, Schengen free movement, and the Euro’s status as a global reserve currency.

Turkey’s Strategic Bridge: NATO membership, direct citizenship opportunities, a growing domestic market, and a strategic position between Europe and Asia provide portfolio differentiation.

Multi-Jurisdiction Legal Protection

Holding assets across different legal systems reduces the risk of a single legal change affecting the entire portfolio:

English law influence in Dubai
Continental European civil law tradition in Spain
Modern legal system in Turkey

This diversity creates a natural safeguard against legal uncertainty.

Final Verdict: Where Do You Earn More?

At TEKCE, our loyalty is not to any single country, but to the investor’s ROI expectations. Our 2026 projection is clear:

For Maximum Net Returns & Tax Efficiency: Dubai is the undisputed leader. Zero taxation and USD-based returns deliver the highest take-home profit.

For Capital Preservation & Lifestyle: Spain remains the top choice for those prioritizing EU living standards and long-term asset stability.

For Citizenship & Emerging Growth: Turkey offers a unique opportunity for investors seeking a second passport and a strategic bridge market.

The Core Lesson of 2026

True wealth protection lies in diversification. A balanced portfolio combining the strengths of all three markets is the fundamental strategy for modern investors seeking maximum returns with minimal risk.

Final Word

If your primary goal is net profitability and predictability, the math currently points to Dubai. However, if you seek portfolio flexibility and geopolitical protection, a strategic allocation across all three markets represents the smartest approach in an era of global uncertainty.

Strategic Insights: Frequently Asked Questions from Global Investors

1. Is Dubai’s zero-tax environment permanent?The UAE government maintains its policy of no personal income or capital gains tax as a long-term vision to support economic diversification. The Corporate Tax introduced in 2023 applies only to certain commercial profits; individual real estate investors remain exempt from rental income and sales profit taxes.

2. How did Spain’s Golden Visa cancellation affect investments?While residency through property investment ended on April 3, 2025, Spain still offers alternatives such as the Digital Nomad and Non-Lucrative Residency visas. However, purely investment-focused capital has rapidly shifted toward Dubai due to lower bureaucracy and tax exemptions.

3. Is real estate investment in Turkey still advantageous for citizenship?Yes. Turkey remains one of the few markets globally offering direct citizenship in exchange for a qualifying investment. Given regional power dynamics and its strategic location, Turkey continues to be a primary choice for investors seeking a “Plan B” passport.

4. Do property management costs (Service Charges) in Dubai reduce profitability?Dubai has no property tax, but annual service charges apply based on building quality and amenities. According to TEKCE analyses, these costs are significantly lower than Europe’s 20–25% rental income tax burden, ensuring that net ROI remains consistently higher.