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Income earned abroad is still subject to tax.
F
Prices in Dubai have gone crazy due to Russian money. Would not be surprised if it drops once Trump brings the war to a conclusion..
Not Dubai, but I do own foreign real estate. A couple thoughts. How often will you be there? My life changed and now I can only go a couple times a year. I have someone locally managing the apartment building but it’s not really a money maker as a short term or long term rental, it’s mostly break even with a little appreciation. Real Estate captures inflation of wages, so if wages are very cheap you may not see appreciation like the U.S. I get 5% on a good year. House insurance is shady and there are many earthquakes and torrential down pours that can cause building damage. I don’t think you can bring any assumptions from a U.S. market and apply it to another country. I also can’t sell my properties. Low demand, high supply, it can take years to sell foreign real estate. In my case build quality is similar to commercial grade U.S. construction. For me it’s a long term retirement play. And you are taxed on world wide income as a U.S. citizen, but you can usually write off taxes paid to a foreign country.
Friend was a pilot there. Bought a new build for ~$1m in 2016. The quality was shabby to say the least (door handles upside down, shower floor not draining, mold issues). Ended up losing $150k, which was hard to do during that time. It was fine since he’d lived there for four years and essentially paid for it with his housing allowance.
F
I’ve seen a lot of appreciation in the pre construction where prior to completion or at completion flipping it. Anyone else has experience either holding all the way and renting or flipping prior to that?
For those of you mentioning about tax on foreign income, I’m not sure if you’re aware of the foreign tax exemption of up to ~125K which would apply to rental income and for capital appreciation well that would be normal capital gain taxes (long term hopefully). 🤞
Are you ready to live there and work there for a year in order to qualify?
How do you plan on getting the money to your home country?
Wire or any other means?