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There are many benefits to investing offshore with an IRA.  There are also things to consider such as performing the proper due diligence and educating yourself not only on the tax laws in the United States, but the tax implications, and transaction process in the country where you are investing. Examples of things to ask before seeking out an offshore investment property could include:

  • Can the property title be held in the name of an IRA? Laws differ from country to country. For example, some countries only allow IRA-owned corporations to hold a title.
  • Who will manage the property or collect rents?
  • Are there any internal issues within the country, or civil unrest?
  • Are there any ecological concerns or societal shifts occuring? 
  • Have you established the proper legal channels to move your money into the country? 

For a more in-depth look at Offshore Investing, read Hubert Bromma's book, "How to Invest In Offshore Real Estate and Pay Little or No Taxes", available for purchase.

Due Diligence

When investing in properties outside the United States, you typically need to establish a bank account in the asset country (where you are buying) to pay expenses and collect income. Investing overseas may also have certain tax benefits for investors. Tax implications vary by country and in complexity. In light of growing popularity of this strategy, the U.S. government has created laws regarding offshore investing. For more information, consult a financial professional or tax advisor about real estate transactions and banking outside of the U.S.

You may also visit the IRS website for offshore terminology help and options available to taxpayers with offshore interests.

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Offshore Real Estate Checklist

When looking offshore, keep these simple steps in mind.

Offshore Real Estate Checklist