Countless individuals love to travel the world. When they visit Nicaragua, they might find they wish to own a home here. Doing so would allow them to return any time they would like to.
When buying land overseas, a person must know the laws and regulations of the country to ensure problems don’t arise. In addition, they should form a network of experts to help them navigate the process.
Tax Implications
Anyone who buys land in a foreign country should consider the tax implications of doing so before signing on the dotted line. Personal property taxes are often lower in other countries than they are in America. However, a person might find they have to pay taxes that aren’t assessed in America. Examples of taxes a person might be required to pay include transfer taxes and stamp duties.
In addition, there may be tax implications in the buyer’s home country. Every investor should work with an accountant familiar with overseas purchases. This ensures they know how much the property purchase will actually cost them.
Compare Real Estate Prices
When deciding where to make a purchase, individuals need to consider real estate prices in other parts of the world. Property in Nicaragua is usually less expensive than in other countries in this part of the world. However, prices vary based on the location of the property. For example, many expats choose to live in San Juan Del Sur, which has driven prices up in this area.
The cost of living is much lower than the cost of living in America. According to WorldData.info, usual expenses are 35.8 percent of what they are in the United States. This leads many people to purchase property in this country rather than its neighbors.
Healthcare Availability
One element people often overlook when purchasing property in a foreign country is healthcare options. People typically find healthcare in other countries is cheaper than what Americans pay. In addition, a person will often find their healthcare plan in the United States provides some coverage if they need to seek medical care while traveling. Travel insurance is another option to be considered.
If the property purchase leads to permanent residency in the chosen country, the investor should look into joining the national health care plan if one is offered. Private insurance also tends to be cheaper in other countries.
Making the Purchase
Learn about programs available to foreign buyers in the country of choice. For example, individuals who invest $30,000 in Nicaraguan real estate are immediately eligible for permanent residency in the country. However, personal ownership of property can lead to liability concerns. To avoid this, a person might want to establish a corporation or limited liability company in the United States.
Another option is to form a foreign legal entity. This comes with IRS requirements an American buyer should be aware of before proceeding with this option. A Trust is the best option for many people, as it offers some of the protections seen with corporations and LLCs. However, it lacks several of the ongoing requirements and formalities.
Consider all options when buying land overseas. Don’t overlook countries such as Nicaragua when making the decision of where to buy. This country has much to offer, and it is very affordable to live here. Learn more today to see if one of the available properties in this country is right for you.
