Have you ever considered owning a short-term rental property in another country? While opportunities vary, some locations can offer significantly higher returns than others.
According to Jamie Lane, chief economist at AirDNA—a firm that compiles and analyzes Vrbo and Airbnb data—it’s become a trend over the past few years for Americans to buy properties out of the country and rent them out.
“I’m seeing more Americans look into investing in short-term rentals,” says Lane. “We’ve seen more people think about it as U.S. home values soared in the [COVID-19] pandemic and afterward. Since it’s tough to find cash flow, investors have been more open to investing outside the United States.”
Americans turn to more affordable international markets
Lane says many Americans are considering global properties in places such as Costa Rica and Tulum, Mexico, where properties tend to be more affordable and easier to make a profit on.
Real estate agent Dennis J. Easters, who is originally from Florida, tells Realtor.com that he and his business partner own several short-term rentals in Costa Rica.
“The perks include favorable regulations compared to many countries, high occupancy rates due to Costa Rica’s tourism, and solid ROI potential,” he says. “Our smaller properties earn around $24,000 annually, while one of our top performers earns up to $80,000 per year.”
“As a millennial living in L.A., I felt priced out of the American real estate market and was intrigued to explore opportunities overseas,” Daria Kulachek, who bought a global investment property nearly two years ago, tells Realtor.com.
Kulachek says that after doing a lot of research, she spent $98,000 on her short-term rental in Spain, which is a price that’s virtually unheard of in the Los Angeles market.
Kulachek became so passionate about global investing that she even started a business helping others buy property overseas.
“Unlike traditional investments, buying property abroad gives you something tangible: a place to stay, rent out, or retire to,” she says.
Top 10 global markets with the best return on short-term rentals
AirDNA recently identified the top 10 global markets based on short-term rental revenue from December 2024 to November 2025, including only the markets with at least 1,000+ active listings in the past 12 months.
- Saint Barthélemy: $523,947 average annual revenue per host
- Providenciales and West Caicos, Turks and Caicos: $254,082
- Mykonos, Greece: $104,972
- Cabo San Lucas, Mexico: $91,599
- Saint-Martin: $88,665
- San Michele al Tagliamento, Italy: $79,999
- Whitsunday, Australia: $74,940
- Sorrento, Italy: $73,508
- Canmore, Canada: $67,882
- Queenstown, New Zealand: $65,925
“Why these destinations made the top 10 is easy,” says Lane. “They’re some of the most desirable vacation places in the world, with the best of the best homes on the planet. The short-term rentals there are primarily large villas, which will give you the largest revenue.”
Research markets before investing
Lane says a lot of these places in the top 10—including Canmore and most of Canada—have stringent restrictions regarding short-term rentals.
“That would definitely be a caveat,” he warns, adding that it’s crucial to do your homework.
“Before investing globally, you need to check on restrictions, regulations, what permits you need to get, and whether or not these permits are even available,” he advises.
Crunching the numbers is essential, as depending on a short-term rental for income can backfire if it fails to deliver adequate returns.
Sometimes the places with the highest total revenue also have the highest housing costs, according to Lane—so you need to take that into account before you sign on the dotted line.
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