There are two types of asset classes that are exempt from the IRS - precious metals and foreign real estate. There are great foreign real estate opportunities all across South America, Europe, and Asia where you can keep your life away from prying eyes. What makes foreign real estate so appealing is the ability to defer your capital gains tax as well as have a passive income.
Jeremy Levine, owner of La Escuela del Sol, talks Costa Rica and certain challenges with the locals. Costa Rica is an excellent place to live, but foreigners may find the laid back Costa Rican lifestyle challenging when it's time to get things done.
Key Takeaways:
Andrew’s Editorial:
[1:40] Let's talk foreign real estate.
[2:10] Look out for the new Nomad Guide on offshore real estate.
[2:40] When people move offshore they're looking for privacy.
[3:20] People also want currency diversification.
[3:45] There are only two types of asset classes that are exempt from reporting to the IRS.
[4:35] You can buy gold at Nomadgold.com.
[5:30] As long as your precious metals aren't stored in a bank, you don't have to report it.
[5:50] You also don't need to report foreign real estate.
[6:20] If you have a rental property, you do have to report the income.
[6:38] In the new Nomad Guide, it will explore 15 countries and the different foreign real estate options.
[6:55] Why should foreign real estate be of interest to you?
[8:25] It doesn't matter how low the taxes are when you're from a country that taxes worldwide income.
[11:18] US citizens have to pay taxes on their income no matter where they live.
[12:55] You can do a 1031 exchange on foreign real estate.
[14:10] Andrew believes there are some big problems in US real estate.
[15:10] Yields in Panama City can be as high as 10%.
[17:05] The Nomad Guide on foreign real estate will be out next week.
[17:20] Foreign real estate is an excellent way to have property kept from prying eyes, have passive income, and defer your capital gains tax.
[18:10] The jurisdiction you live in and the jurisdiction you're a citizen of is what you should consider.
[19:00] Many of the tax breaks you have at home are also applicable overseas.
[20:10] Lots of great real estate opportunities in Belize and further down south, Central and Eastern Europe, and some places in Asia.
Interview:
[22:30] Why did Jeremy move to Costa Rica?
[27:35] How did La Escuela Del Sol get started?
[29:40] How do you market fire dancing classes?
[32:25] Having good accountants is key to making sure you stay legal with the US and the country you live in.
[33:20] You get a $90,000 foreign income tax exclusion.
[34:10] You have 90 days to visit Costa Rica on a tourist visa.
[35:35] Jeremy had a friend who over stayed on his tourist visa and is now banned from the country.
[39:10] What kind of challenges is Jeremy currently facing?
[41:35] Follow your bliss. If you can work from anywhere, then why not work on a beach?
The Lightning Round:
[43:05] One business – Jeremy loves what he's currently doing.
[43:45] One country – Costa Rica.
[43:55] One book – Jeremy can't remember the name of the book.
[44:20] One tool – Microsoft Excel.
Listener Question:
[46:44] Alex asks about unreported offshore bank accounts.
[49:35] Remember, Andrew is not a tax professional.
[49:48] If you have unreported accounts, you need to get it in compliance. Talk to a tax lawyer.
[51:00] Ignorance to the law is no defense.
Mentioned In This Episode:
www.nomadgold.com/