Things to Consider When Buying Property Abroad as a American

International real estate has its benefits, but the complexities can be intimidating and risky. From navigating legal regulations and language barriers to working with local vendors and securing financing, buying a home abroad requires careful consideration and expert guidance.If you’re looking to buy a second home in another country as a American citizen, Pacaso can help streamline the process. Learn more about the things you need to consider when purchasing property abroad — and how Pacaso takes care of it all for you.

Understanding international markets

Like owning a second home in the United States, an international second home offers many benefits. The main advantage is having a familiar place to enjoy every time you and your loved ones vacation abroad. However, international real estate ownership comes with unique challenges.First, buyers need to comply with regulations that can vary greatly from country to country. For example, in Mexico, people from outside the country are restricted from owning residential property in certain areas. Canada prohibits foreign purchasing completely, at least until 2027. In Europe, buyers must follow stringent checks for things like anti-terrorism and anti-money laundering regulations. As a buyer, you will need to understand local business culture and build relationships with advisors to ensure a smooth buying process, especially if you’re doing everything on your own.

Cabo San Lucas, Baja California Sur, Mexico - High angle view of an oceanfront resort location.

When you buy a Pacaso vacation home abroad, we do the work of understanding the local market. Our legal team conducts thorough research and background checks tailored to each locale to ensure your home (or co-ownership LLC) is compliant with local regulations. We also consult our go-to advisors, who provide on-the-ground knowledge to minimize regulatory issues. Plus, our team handles all the communication with local entities, saving you time and effort.

Navigating international loans, financing and taxes

When buying a home abroad, buyers will also need to consider tax regulations and navigate financing. Foreign buyers often face obstacles in securing a loan because they are perceived as high-risk by local banks and international home loan lenders. Pacaso simplifies this process by offering financing on all of our international properties, making it as easy in that country to finance as it is in the United States. Moreover, Pacaso structures our LLC ownership model in a tax-advantageous manner, minimizing tax burdens as much as possible and ensuring compliance with local regulations. While we still recommend you consult your tax professional for more personalized advice, our team can work with them and provide general guidance on tax implications.

Researching legal and administrative processes

In the United States, buyers are used to signing a deed when purchasing a home and recording it at a county office. As an international buyer, you will need to research the procedures and departments for the specific country you want to purchase in. You might also consider working with local legal counsel and agents to streamline documentation and ensure a smooth transaction.When you buy a Pacaso second home, our team conducts these administrative processes on your behalf. From signing deeds to navigating notary departments, Pacaso takes care of the nuts and bolts so that you can focus on enjoying your new home.

“As a U.S. citizen buying a home in Europe, there are a lot of complications. One of the things I liked about Pacaso was they made it feel like I was buying a home in Miami or New York. The team took the time to explain everything, and it was really easy.”

— Brendan Wallace, owner of a London Pacaso

Managing your home remotely

Owning (and enjoying) your vacation home goes beyond the initial purchase. Managing a property overseas can present its own set of challenges, like conducting routine maintenance and responding to issues. While you might consider hiring a property manager, keep in mind that some local managers might not want to sign documents with individuals from outside of the country. Pacaso provides a safety net for you by overseeing all property management, from ensuring things go smoothly during your stay to conducting regular maintenance of your home. You’ll communicate directly with our team, so there’s no need to navigate language barriers and time zone differences. We have relationships with local property managers, so you’ll know your property is in good hands.

Buy a home in another country with confidence

Pacaso's mission is to match more people with their dream vacation home — including homes in another country. Our co-ownership model facilitates buying and affording a luxury home abroad. While international real estate can be a difficult undertaking, we make the process manageable. By conducting due diligence and taking care of all the complexities involved in an international purchase, Pacaso empowers you to buy your dream home in your happy place and focus on what matters most: Making lifelong memories with the ones you love for the years to come.

Buying a home abroad is a huge lift. However, when you leverage Pacaso’s local expertise and resources, the world truly becomes your oyster. You unlock the full potential of international real estate without all the hassles and uncertainties.”

— Meagan Licata, Pacaso Real Estate Senior CounselReady to find your vacation home? Contact our team to explore our listings nationwide and in select global markets, and learn how you make your dreams a reality with co-ownership.

Guide to buying property abroad as an American (and how Pacaso makes it easy)