Housing & Real Estate

Housing is the single largest expense and the most consequential early decision for US citizens relocating abroad, and the near-universal advice from experienced expats is the same: rent before you buy. Renting carries far lower upfront cost, preserves flexibility while your visa status and long-term plans firm up, and lets you test neighborhoods, commutes, and daily life before committing capital in an unfamiliar legal system. Buying can make sense once you are confident you will stay several years, but it locks you into a market and a tax regime you may not yet fully understand. A common, low-risk sequence is to book a short- or mid-term furnished rental for your first few weeks or months, then sign a long-term lease (or pursue a purchase) in person once you know the city.

Key Points

• 1Rent before you buy. Book a short- or mid-term furnished place for your first weeks, then sign a long-term lease or buy in person. Renting first lets you vet neighborhoods, dodge scams, and confirm your plans before committing capital in a legal system you don't yet know.
• 2Confirm whether foreigners can even own there. Rules differ wildly: Mexico requires a fideicomiso (bank trust) within 50 km of the coast/100 km of a border (~$1-3k setup, ~$500/yr); Thailand allows no foreign land and caps condos at 49%; the Philippines bars foreign land outright, caps condos at 40%, and favors long leases (now up to 99 years).
• 3Don't assume buying gets you a visa. Spain ended its golden visa on 3 April 2025 and Portugal dropped real estate from its program in 2023. Treat the residency permit and the property purchase as separate problems with separate requirements.
• 4Expect different lease norms and bigger guarantees as a foreigner. Spain's deposit (fianza) is one month with 5-7 year protected tenancies; Portugal runs 1-2 months with long notice periods; Mexico uses one-year, Spanish-language contracts and often requires a local guarantor (fiador) or bond. Without local credit history, landlords commonly demand several months upfront.
• 5Budget for ongoing costs, not just the purchase price. Mexican property tax (predial) is low (often $100-300/yr, ~0.05-1.2% of an undervalued cadastral assessment) but you must pay it unprompted, and there's a one-time acquisition tax (ISAI) plus notary/legal fees of 1-2%. Add condo/HOA dues, insurance, and maintenance everywhere.
• 6Your US tax obligations follow you. Owning foreign property itself isn't reported to the IRS, but foreign bank accounts used to buy or hold it can trigger FBAR (aggregate balances over $10,000) and FATCA reporting; rental income and capital gains remain US-taxable, though the Foreign Tax Credit usually offsets foreign tax already paid.
• 7Treat remote rentals as scam territory. Never wire money for a place you haven't seen in person or verified through a reputable platform; be wary of an 'overseas landlord' demanding a deposit. Use payment-protected platforms (HousingAnywhere, Spotahome, Flatio), check that agents are licensed, and finalize long-term contracts on the ground.