Splashing out on a holiday home may not be as extravagant as it seems. Apart from free holidays every year for the family, you can create a lucrative business by renting the place out. To protect your ROI it's crucial to choose the right location. Hitachi Personal Finance has created a map using data from AirDNA and insight from international property expert, Simon Conn to reveal the 25 most profitable locations across the globe to own a holiday let.

The year-round sunshine in Tenerife makes it a popular spot for sun-seekers in need of relaxation – or to let their hair down among the island’s bars and clubs – so it’s no surprise that holiday homes in Tenerife have huge rental potential. With a stable government and an expanding economy, the island is a frontrunner for foreign investment and it's popular with British expats, too.

Despite the amazing natural beauty and incredible history of this Cyprian harbour town, property prices in Paphos remain affordable and have been consistently rising over the last few years. Thanks in part to the passport scheme and investment in tourist-friendly attractions such as the new marina, there's a good demand for holiday homes and buying here means you get to enjoy the 27 beaches in the local area. 

The golden coastline stretches for around 6km around Benidorm and it's still hugely popular with holidaymakers looking for a place in the sun. There's been something of a property boom here this year and it's become one of the most sought after places to buy a holiday let.

The Acropolis alone keeps people coming to the Greek capital. The financial crisis in Greece has kept the prices of food, drink and alcohol extremely competitive, meaning visitors get lots of bang for their buck. The property market is still appealingly affordable and there's been a huge surge of interest in holiday rentals, with around 12,000 properties available to rent on AirBnB.

If you already own a holiday home in this gorgous Kiwi capital you're on to a good thing as rental income is a healthy £940 a month. Unfortunately, due to new laws brought in to help more NZ natives on to the property ladder, it's become almost impossible for international investors to buy a house here with an almost blanket ban on foreign buyers. 

This metropolis-on-sea is a playground for the rich and famous –- its designer shopping is unrivalled and there’s a lively nightlife scene. Dubai is also home to the tallest building in the world – the Burj Khalifa. Visitors can venture a little out of the city and go camel trekking in the desert or crab fishing.

Often referred to as the most European city in North America, there’s plenty for lovers of art, culture, history, and science. And with more restaurants per capita than any other North American city, Montreal is the ideal destination for food-lovers.

This city is so much more than just a gateway to the Costa del Sol. The birth place of Picasso, Malaga has many museums and art galleries, including the Picasso and Carmen Thyssen museums as well as its own Pompidou Centre. Unlike some Spanish cities, it does not wind down in summer. Even out of season, it rarely gets cold.

This port city is famous for having some of the best nightlife in the world, its beautiful red-brick architecture and, for fashionistas, being the birthplace of Karl Lagerfeld and the home of Jil Sander. Hamburg’s Kunstmeile or “art mile” comprises five major galleries.

A village in the North of Malta, St. Paul's Bay is a popular tourist destination. It used to be a fisherman’s village but is now more populated with holidaymakers staying in private accommodation – so there are no ugly high rises or sprawling hotels.

This beautiful Alpine town is a hit with outdoorsy types with mountains and Lake Annecy being an ideal playground for water sports and other leisure activities. There’s also the castle – Château d’Annecy and the most incredible scenery wherever you look. If you're tempted to invest near the slopes check out these luxury ski-resort homes.

The capital of the Côte d’Azur is curved round the Bay of Angels and has much to offer visitors. The Promenade des Anglais is where pastel-painted buildings overlook the Mediterranean. Nice's Old Town is popular for its winding streets and flower markets. It’s also 30 minutes from Monaco – the ultimate playground for the rich and famous.

The Berlin Wall Memorial and former east/west entry point Checkpoint Charlie are just two of many reasons that so many people visit this city. It’s also known for its nightlife and shopping and, more recently, a property market that's on the rise. The Schultheiss Quartier is a brand new shopping mall set inside a striking 19th-century former brewery due to open later this year. Berlin Zoo is also known as one of the best in the world and the Botanical Gardens has over 100 acres of open space to explore.

The Sydney Opera House, Sydney Harbour Bridge and Bondi beach are just a few of the many attractions here. The city of Sydney also provides a great starting point for exploring other areas. To the west lies The Blue Mountains, where visitors can discover dramatic scenery, bushwalks and caves. Other great day trips include Minnamurra Rainforest and Mungo National Park.

Holland’s second biggest city is brimming with exciting things to see and do. Visitors often ride around the city on bikes. It’s even easier for visitors to travel to Rotterdam now. A direct Eurostar route from London to Rotterdam was added earlier this year, with a journey time of just three hours and 1 minute. Dutch architects have created some interesting homes, including Piet Blom’s iconic yellow cube houses, which are tilted 45 degrees and were the first of their kind in Holland.

Paris is the go-to for a romantic get-away but there’s plenty to do for families too. The list of attractions is endless, museums, art galleries, food, wine, shopping, café culture, boat trips down the Seine – and of course, the Eiffel Tower.

Galway is full of charm – and is compact enough to enjoy on foot. Its old-fashioned pubs showcase the city’s ever-growing selection of craft beers and just a stone’s throw away are sandy beaches strewn with seaweed and rocks.

Fringed by vast mountain ranges of the Alps and Jura, visitors will find out Geneva is much more than a passing place for skiers. Geneva’s Old Town offers small bars, cafés and antique shops lie in its winding cobbled streets.

As one of the world’s oldest cities, Lisbon is also the continent’s sunniest capital. It is city steeped in history and still even has century-old wooden trams and iron funiculars that run up and down the narrow streets. Portugal’s national drink, port or porto, is in abundance in the city.

The capital city of the biggest Balearic is 12 miles from the party town of Magaluf – yet is nothing like its neighbour. Palma has palm trees, blue skies and yachts gliding in and out of the marina. From the beach is a view of the stunning cathedral, La Seu. There’s plenty of modern art to admire in galleries dotted around and mountains to climb. 

While Ibiza is perhaps best-known for its sprawling nightclubs and famous DJs jetting in, the island has much more to offer. There is a beautiful coastline with dozens of tiny coves to discover. It even has great areas for bird-spotting. Take a look at these incredible houses for sale in the Balearics. 

This city will never be short of visitors. The Colosseum is one of Rome’s most famous landmarks, and one of dozens of things to see in the city. It boasts buildings and piazzas and churches from the Renaissance and Baroque periods and plenty of history and architecture. Then there's the food and wine – not to mention gelato and fashion.

London is arguably one of the most exciting cities in the world – people from across the globe visit all year round. Whether they want to sight-see, take in a West End show, ride the London Eye, visit Parliament and Big Ben or relax on a boat trip along the Thames, visiting London is a must for most, which makes it a great place to invest. Do your homework though as London houses prices are in a state of pre-Brexit flux,

The best Guinness is said to be served in Dublin. Whether it’s the beer, the welcoming locals, live music in pubs or just a desire to explore the city, this is a hugely popular place to visit. It’s not just about partying. Dublin’s Phoenix Park is the largest enclosed public park in any capital city in Europe. Interested? Here are Five dazzling homes for sale in Dublin.

Santorini wins the top spot for profitability earned from holiday lets. Arguably Greece’s most beautiful island, Santorini is a mix of towering cliffs, inky waters, bright white sand and whitewashed villages. There’s plenty on offer here aside from soaking up the sun. Visitors can choose from rock climbing, hiking and sailing to drinking, dancing and plate-smashing. But before you make the leap read our 5 rules to buying a place in the sun.