With a self-directed IRA you can allocate your retirement funds when, where and how you want. Create your financial future with the freedom to make choices with your retirement plans. And, by diversifying your investments, you may protect and enhance your retirement.
Self-directed IRAs that focus heavily on real estate investments are often referred to as “Real Estate IRAs.” With a Real Estate IRA, your retirement funds can invest in all kinds of real estate and real estate-related assets. Explore the most popular real estate investment options for your self-directed IRA:
What can a self-directed IRA invest in?
- Apartment Buildings, Co-Ops, and
Condominiums - Commercial Property
- Foreclosures
- Improved or Unimproved Land
- Joint Ventures
- Limited Liability Companies (LLCs)
- Limited Partnerships
- Offshore Property
- Single Family and Multi-Unit Homes
These are just a few of your options with a self-directed IRA. The real estate-related investments allowed in these retirement accounts are seemingly endless.
Can a self-directed IRA buy property in Belize?
Yes, US tax law does not stop a self-directed IRA from owning real estate outside the United States, but the IRA itself (often through an IRA-owned LLC) must hold title, and every expense and dollar of income must run through the account. Many US custodians decline foreign property, so confirm your custodian will hold it before you make an offer.
Rules that can disqualify the whole IRA
- You, your spouse, parents, children, grandchildren, and their spouses are disqualified persons: none of you can live in, vacation at, or otherwise use the property.
- You cannot sell your own property to the IRA, rent it to family, or do repairs yourself; hire third parties and pay them from the IRA.
- A prohibited transaction can cause the IRA to be treated as fully distributed as of January 1 of that year, per the IRS guidance on prohibited transactions.
Belize costs to plan for
On the Belize side, foreign buyers own property with the same rights as citizens, and stamp duty is 8% for foreign buyers on the value above US$10,000, charged on the higher of the price or assessed value. Get a US tax advisor and a Belize attorney involved before closing.
Related reading: how to finance Belize property, Belize closing costs and property for sale in Belize.
