Housing & Real Estate

US citizens can own real estate in most countries, though many impose restrictions or additional requirements for foreign buyers. Understanding local ownership laws, tax implications, and the decision between renting and buying is crucial for successful relocation. Some countries prohibit foreign land ownership entirely (Philippines), limit the number of properties foreigners can own (Cyprus), or restrict purchases to new developments (New Zealand). Many countries require foreigners to purchase through a local business entity like an LLC or corporation rather than as individuals. The US citizenship-based taxation system means you must report worldwide income, including foreign rental income, to the IRS. Rental income is not eligible for the Foreign Earned Income Exclusion. Foreign rental properties are depreciated over 30 years (vs. 27.5 years for US properties), and foreign bank accounts used for property management may trigger FBAR requirements.

Key Points

• 1Some countries (Spain, Portugal) offer residency permits to property owners investing €500,000+
• 2Foreign rental income must be reported to IRS—not eligible for FEIE exclusion
• 3Foreign residential properties depreciate over 30 years (vs 27.5 for US properties)
• 4Foreign bank accounts for property management trigger FBAR if total exceeds $10,000
• 5Many countries require purchase through LLC or corporation rather than individual ownership
• 6Philippines prohibits foreign land ownership; New Zealand restricts existing home purchases
• 7Property ownership alone typically does not grant residency rights (varies by country)