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Which taxes do Americans have to pay when buying property abroad? As if purchasing a property in another country wasn’t complicated enough American citizens and permanent residents need to think about filing and paying US taxes even when they purchase property in another country.
On top of this, they, of course, have to pay local taxes in the country where they buy property.
Global investment in real estate can be quite complex, and there are many hoops to jump through in order to get things done right. It can also be quite rewarding, as you can get good property prices with decent ROI in some places.
The benefits of international real estate ownership are huge, especially if you can get a good deal.
As you probably already know, in some countries you will be able to get citizenship by investment or residency by investment if you purchase real estate. The most famous examples of this are the Golden visa in Portugal, Malta’s citizenship by investment program, and of course Golden visa in UAE (Dubai).
But again, what happens if you’re an American? Your tax obligations will always be present (unless you renounce your American citizenship) no matter where in the world are you.
Today we are specifically covering the topic of real estate investing for Americans who are buying property abroad.
Who are we and what do we do?
We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer
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I'm in Uruguay. Real estate prices, for Uruguayans and foreigners, are quoted in dollars. There is no discrimination against foreigners, officially, in buying and selling of property. Rental in come is more often in Uruguayan Pesos. At the same time, as you said Michael, some of the structures used to buy and sell property are not available here, such as LLCs or Trusts.
Michael, you mentioned your wife doesn't believe in credit. Have you changed her view or do you use alternative methods to build credit ?
Mortgage Question. I’m a dual US/EU citizen. In the event I relocate to (say) Portugal or Italy, my rough understanding is if I apply for a mortgage, I’d be better off presenting my EU passport (as well as local residency) vs a US passport. In fact, I would not even mention I’m a dual citizen. Would you agree or does the actual situation depend on the specific EU country? Thanks.
1031 exchanges are not for personal residences, so not really for "lifestyle" properties.
Would love to see a video on best places to setup brokerage account. (for active traders, possibly LLC?) Is it possible to do this while living in a higher tax country?
love your videos