This topic is primarily covered in Topic #18 (Buying Property Abroad). This entry covers additional international affairs angles for Americans purchasing foreign real estate.
8 steps across 1 sections
1. Key International Considerations
- FBAR reporting Foreign bank accounts holding purchase funds over $10,000 aggregate must be reported (see topic #794)
- FATCA compliance Form 8938 may be required for foreign financial accounts exceeding $200K single / $400K MFJ
- US tax reporting Rental income from foreign property reported on US returns; Foreign Tax Credit offsets double taxation
- Title systems Many countries use different property registration (land registry vs. title insurance)
- Financing US banks rarely finance foreign property; local financing may require 30-50% down
- Currency risk Property value in USD fluctuates with exchange rates
- Inheritance laws Some countries have forced heirship rules overriding your will
- Restrictions Some countries restrict foreign ownership (Thailand, Mexico coastal, Switzerland)
Pro Tips
- Hire a local attorney specializing in foreign property purchases
- Understand total costs including transfer taxes, notary fees, commissions
- Consider forming a local entity for ownership