Legal and Tax Framework
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Property rights for foreigners: Can you buy directly under your name, or do you need to form a corporation?
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Taxes: Understand the taxes on purchase, ownership, and income (e.g., capital gains tax, property transfer tax, etc.).
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Tax treaties: Check if there are treaties between your country and the country where you are investing to avoid double taxation.
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Legal restrictions: Some countries limit purchases in certain areas or for specific nationalities.
Profitability and Market
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Rental demand (short or long term): Is there tourist or residential demand?
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Expected net ROI: Calculate expected income vs. expenses (maintenance, taxes, property management).
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Historical appreciation: Evaluate whether the market is experiencing growth, stagnation, or decline.
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Portfolio diversification: Ensure you do not concentrate all your assets in a single country or asset type.
Financing
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Can you obtain a mortgage as a foreigner?
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Interest rates and banking conditions in that country.
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Equity requirements: Some countries require a minimum initial investment (e.g., residency-by-investment programs).
Country Stability
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Political: A stable political environment reduces risk.
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Economic: Inflation, exchange rates, economic growth, and legal security.
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Safety: Personal safety and investment security.
Property Management
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Remote management: Who will manage your property if you are not present?
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Maintenance costs and potential renovations.
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Insurance: Property, civil liability, and natural disasters.
Due Diligence
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Verify the developer or seller: Track record, delivered projects, and compliance with deadlines.
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Professional advice: Local lawyer, accountant, and real estate advisor with international experience.
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Clear and translated documentation.
Investment Objective
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Is it for rental income, resale, personal use, or a combination?
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Is it short-term or long-term?
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Are you looking for passive income or capital appreciation?
Examples of Common Investment Destinations:
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USA: High legal security, mortgage opportunities, and programs such as the EB-5 visa.
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Dominican Republic: Incentives like the CONFOTUR Law, and high tourism profitability.
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Mexico: Tourism growth and constant development in areas like Tulum or the Riviera Maya