The 3 best countries in Europe to buy a vacation home.

France, Italy and Spain are the leading options for those looking for a vacation home, according to real estate agents. These European countries are politically stable, have good governance and easy access to mortgages, as well as attractive cities, countryside and coastlines.

Provence in France, Tuscany in Italy and the Spanish capital Madrid are popular investment destinations. The Spanish city of Marbella on the southern coast of the country is popular with foreign buyers.

There are three European countries that are "perennial favorites" for buying a vacation home, according to Kate Everett-Allen, a partner at real estate firm Knight Frank. France, Italy and Spain have political stability, good governance and easy access to the mortgage market, which has helped them become popular with foreign buyers. She also noted that it is easy for buyers to understand the real estate market through land registries that show the value of properties sold, and they respond to soft factors such as attractive countryside, good food and attractive cities.

Before you start your search, think about what you want to get out of the property, Everett-Allen said. Do you plan to own your home for five to 10 years for family vacations and extended stays? It's also important to consider desired or needed rental income. The ability to rent out the home is critical. "With higher mortgage costs, we are seeing more people wanting to rent out properties in a convenient carefree way," Everett-Allen said. Some countries have introduced "digital nomad visas" in the wake of the pandemic, which are attractive because travelers renting out homes often want to stay for two or three months.

Also make sure you can get there when you want to. "Some regions just can't be flown to in the winter, so . will you have easy access from your home location?" - Everett-Allen said. There's also the "lock and leave" factor when you're not in the house, so be sure to consider what local contacts you have that can help with maintenance or security when the house is empty.

People are spending more time in their vacation homes than they used to, Everett-Allen said. "It used to be that [people] wanted to be able to drive from the airport to their home in an hour. Now we're seeing that they're willing to drive a little bit farther because they'll spend the whole week in their home, not just the weekend," she told CNBC.

It's also worth checking the rules for renting using platforms such as Airbnb. For example, the Italian city of Florence banned new short-term rentals through such platforms in October, and Paris has a 120-day limit on property rentals.

In the case of Brits, Brexit means they can only spend 90 days out of 180 in Schengen countries (which include France, Italy and Spain), otherwise a visa will be required.

France is the most visited country in the world according to the United Nations World Tourism Organization, and Provence and the Alps, with their spectacular scenery and plenty of space, are popular investment destinations for Northern European buyers, according to Everett-Allen.

Postpandemic has been popular in the Alps region for its active outdoor lifestyle.

The best prices for luxury properties in Courchevel 1850 Resort were 27,250 euros ($29,866) per square meter in the second quarter of 2023, while Mosin Resort had the lowest prices at 9,700 euros per square meter, according to Knight Frank research.

France has measures in place to make it more attractive to U.S. residents for business. Under the plan, French entrepreneurs in the U.S. will be able to get extended visa deadlines and American business owners will be able to take advantage of simplified visa procedures, Olivier Becht, France's deputy minister for foreign trade, said in a publication on X in November.

France also encourages the purchase of new properties in the country by compensating the standard tax rate (known as VAT) of 20% if the property is available for rent for about 14 weeks a year. Two-bedroom, two-bathroom new builds in the town of Méribel-les-Allues near the ski lifts are listed on the Knight Frank website for around $605,000.

Tuscany, with its vineyards, farmhouses, and cities like Florence, Siena, and Lucca, is a consistently popular destination, according to Everett-Allen, as well as the towns and villages around the lakes in the north of the country, with mountains and access to the city within reach. A six-bedroom villa on Lake Como, rumored to be home to George Clooney, is listed for sale on the Knight Frank website for about $2.3 million.

To get more for your money, consider Puglia, in the south of Italy's "boot," which has "stunning coastline, charming historic towns, and delicious cuisine," said agent Sara Traverso, co-founder of the real estate firm Nest Seekers International, in an email to CNBC. A countryside house in Puglia with four bedrooms, two bathrooms, and a pool is being offered by Nest Seekers for around $497,000.

Traverso, who worked for several years at her family's Italian real estate firm before moving to New York, said that the central region of Umbria is also popular due to its medieval hill towns and relaxed lifestyle. "Preserving cultural heritage attracts people looking for a more tranquil and authentic Italian experience," she said. The island of Sicily is also becoming an increasingly popular destination for vacation homes. And 2024 could be a good time to buy, as Traverso expects a decrease in prices nationwide and an increase in supply, which is advantageous for foreign buyers.

Italy has become a popular destination for wealthy foreign buyers moving to the country due to a tax rate introduced in 2017, which allows individuals to pay a fixed amount of 100,000 euros per year on foreign income, regardless of its size. This "fixed tax" program extends to family members, who pay a fixed 25,000 euros per year on foreign income, and it is "strongly" attracting clients of Knight Frank in Europe and beyond, said Everett-Allen.

Spain is popular as a buying destination among the French, British, and Germans, with their preferred areas being the Balearic Islands and the glamorous coastal city of Marbella in the south, according to data from Knight Frank. And it is likely to become even more popular among foreign buyers thanks to the new visa for digital nomads introduced this year, which allows people from outside the European Union to live and work in Spain for up to five years. "If you have your own home and a digital nomad is staying there for two or three months, it's very convenient," said Everett-Allen.

The capital of Spain, Madrid, is expected to see a rise in real estate prices ahead of other European cities in 2024, according to forecasts from the real estate firm Knight Frank.

The city of Madrid, which was previously unknown to foreign buyers, is becoming popular due to its "price attractiveness" compared to London or Paris, said Everett-Allen. "It's a relatively small city that has a strong identity, good culture, and convenient access, as there are now many flights to Madrid," she said.

Luxury real estate in Madrid costs around 8,000-9,000 euros per square meter compared to Paris, where the price is about 19,000-20,000 euros per square meter. However, according to forecasts by Knight Frank, property prices in Madrid are expected to rise by approximately 5% in 2024, making it the fastest-growing city in the European real estate market. In Paris, luxury property prices are projected to increase by 2%, while the agency reports that prices in London will remain stable.