Housing Abroad: Renting, Buying and Avoiding Costly Mistakes

Where you live shapes your whole experience abroad: your budget, your social life, your daily walk to the market. It's also where many expats make their most expensive mistake, buying a home in a place they've known for two weeks.

This guide covers renting, finding a place safely, and what to understand before you buy. Laws differ enormously from country to country, so treat this as the map, not the territory, and bring in a local lawyer before you sign anything significant.

Rent before you buy

Experienced expats say this so often it sounds like a cliché. It's still the best advice in this guide. Rent for at least a year before buying, for reasons you can't learn on a visit:

• Seasons. The breezy beach town may be sweltering and buggy in August, or deserted in the off-season.
• Noise. Roosters, church bells, bars, construction and weekend parties all vary by street.
• Utilities. Water pressure, power outages and internet reliability can differ block by block.
• Your own fit. Many people discover they want a different town, or a different country, after living somewhere a while.

Renting also keeps your money liquid while you work out banking, taxes and residency. Selling property abroad can take a long time, and some markets have few buyers outside the local population.

Renting: leases, deposits and local norms

Rental customs vary widely, so ask locals and other expats what's normal before negotiating. Things to expect and check:

• Furnished vs. unfurnished. In some markets, "unfurnished" can mean no appliances or light fixtures. Furnished rentals cost more but suit a first year.
• Deposits and advance rent. Landlords may ask for several months up front, especially from foreigners without local credit history or a local guarantor.
• Lease language. Your lease will usually be in the local language. Get a translation and understand notice periods, rent increases and who pays for repairs.
• Proof of address. Residency, banking and registration often require a lease or utility bill in your name. A cash arrangement with no paperwork can block those steps.
• Utilities and fees. Confirm who pays for water, power, gas, internet, building fees and any local property taxes.

A short-term furnished rental for your first one to three months gives you a base while you look in person. That is usually smarter than signing a year-long lease from the U.S.

How to search

Large international listing sites tend to show the expensive, foreigner-facing end of the market. Locals often find housing through:

• Local-language property portals and classifieds.
• "For rent" signs in windows and on balconies, with a phone number to call or message.
• Local real estate agents, who may charge a fee to tenants in some countries.
• Word of mouth through neighbors, churches, clubs and expat groups.

Walking a neighborhood with a local SIM card and a translation app often turns up better options than any website. Our scouting trip guide explains how to use a visit to compare areas.

Rental and property scams

Scammers target newcomers who don't know local prices or procedures. Warning signs include:

• A great place at a well-below-market price.
• A "landlord" who is abroad and can't show the property, but wants a deposit to hold it.
• Pressure to pay by wire transfer, payment app, gift card or crypto.
• Refusal to show ID or proof of ownership or authority to rent.
• Photos that appear on other listings under different names.

Can foreigners buy property?

Many countries let foreigners buy homes on roughly the same terms as citizens. Others restrict it. Three well-known examples:

Mexico: the restricted zone and the fideicomiso

Mexico's constitution bars foreigners from directly owning land within 100 km of its borders or 50 km of its coasts, which takes in many popular expat areas. To buy residential property there, foreigners use a fideicomiso, a trust in which a Mexican bank holds title and you hold the rights to use, rent, sell or pass on the property. The trust can run up to 50 years and can be extended. A permit from Mexico's foreign ministry (SRE) is required to create it. Expect annual trust fees from the bank. Outside the zone, foreigners can generally hold title directly, after agreeing to be treated as Mexican nationals with respect to that property.

Thailand: condos yes, land generally no

Thailand generally prohibits foreigners from owning land. Foreigners can own condominium units under the Condominium Act, as long as total foreign ownership doesn't exceed 49% of the unit area in the building. Arrangements that put land in a Thai nominee's name to get around the rules carry serious legal risk. Get independent legal advice before considering any structure that sounds too clever.

The Philippines: condos within a 40% cap

The Philippine constitution generally prevents foreigners from owning land, apart from inheritance. Foreigners may own condominium units, but under the Condominium Act foreign ownership in any single project can't exceed 40%. Corporations that hold land must be at least 60% Filipino-owned.

Rules exist in other places too: some countries require permits for foreign buyers, restrict purchases near borders or military areas, or limit agricultural land. Our destination guides cover the basics for each country we profile.

How buying usually works

Processes vary, but most civil-law countries (including much of Latin America and Europe) follow a similar pattern:

1. Get a local tax ID and bank account. Many countries require a taxpayer number to buy property.
2. Hire your own lawyer. Not the seller's, not the agent's. Your lawyer checks title, debts, permits, zoning and whether the seller has the right to sell.
3. Sign a preliminary contract. Often with a deposit that you may lose if you back out. Know the conditions before you sign.
4. Close before a notary. In many countries, a notary is a specially trained legal official, not the notary public you know from the U.S. In Mexico, for example, the notario público is a lawyer appointed by the state who formalizes the deed and handles certain taxes and registrations.
5. Register the deed. Ownership is usually protected by registration in the public property registry. Confirm it's done.

Closing costs

Transfer taxes, notary fees, registration fees and legal fees add a meaningful percentage to the price, and the split between buyer and seller varies. As one example, the Thailand guide published by Multilaw lists a land office transfer fee of 2% of the official appraised value, split equally between buyer and seller unless they agree otherwise. Ask your lawyer for a written estimate of all buyer costs before you sign a preliminary contract.

Title insurance is rare

In the U.S., title insurance is routine. In many other countries it's uncommon or unavailable, and buyers rely on the notary, the property registry and their lawyer's due diligence. That makes the lawyer's title review especially important.

Owning property abroad: what comes after

• Taxes. Expect local property taxes, and possibly local taxes on rental income or capital gains. U.S. citizens also report worldwide income to the IRS. See U.S. taxes abroad.
• Reporting. Property held directly generally isn't reported on an FBAR, but foreign bank accounts used to buy and maintain it may be. See FBAR and FATCA.
• Inheritance. Property abroad is usually governed by local inheritance rules. A will that works in the country where the property sits can save your family a lot of trouble. Our retiring abroad guide covers estate planning.

Last reviewed October 17, 2026. General information only, not legal, immigration, or tax advice. Requirements change, so confirm with official sources before you apply. See our disclaimer.