Alternative Assets

    Buying International Real Estate

    Realize your dream of buying retirement or investment properties in countries like Mexico, Costa Rica, Panama, and beyond—all within your retirement account.

    Discuss Foreign Investments

    Global Diversification

    Many investors are looking beyond domestic markets to diversify their retirement portfolios. With a Self-Directed IRA LLC, you have the freedom to purchase international real estate, whether it's a future retirement home in Costa Rica, a vacation rental in Mexico, or an agricultural investment in South America.

    While the IRS permits foreign real estate investments, the structuring must be handled meticulously to ensure compliance with both US tax law and the foreign country's property ownership regulations.

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    The Two-Entity Structure

    Purchasing foreign real estate typically requires a specialized two-entity structure, as your USA-based Self-Directed IRA LLC cannot directly hold title in most foreign jurisdictions.

    01

    The USA IRA LLC

    First, we establish a Self-Directed IRA LLC in the United States. Your IRA custodian funds this LLC, giving you checkbook control over your retirement funds.

    02

    The Foreign Entity

    Second, your USA LLC funds a new legal entity established in the country of your investment (e.g., a Mexican Fideicomiso or Costa Rican Sociedad Anónima). This foreign entity holds the actual property title and is 100% owned by your USA IRA LLC.

    Critical Compliance Rules

    When investing internationally, strict adherence to IRS regulations is still required:

    • No Personal Use: You cannot hold title personally in your name. You also cannot use the property for personal vacations while it is owned by the IRA. It must be held strictly for investment purposes.
    • Future Retirement: You can eventually use the property if you take it as an in-kind distribution when you reach retirement age.
    • FATCA Compliance: You must comply with the Foreign Account Tax Compliance Act (FATCA) and report foreign financial assets to the IRS.

    Ready to invest globally?

    Schedule a consultation to discuss the proper legal structuring for international real estate investments.

    1-800-936-0872