Using a Self-Directed IRA or 401K to Invest in Belize Real Estate

Using a Self-Directed IRA or 401K to Invest in Belize

We are frequently asked, “Can I use an IRA or 401K to invest in Belize real estate?”. The answer is YES, you can! We have worked with countless Americans, helping them invest in Belize real estate using their SDIRA or 401K without paying taxes on withdrawing funds. This post covers the different investment strategies and ways you can use a 401K or Self-Directed IRA to invest in Belize.

One way to manage costs, minimize the out-of-pocket investment, and ease the burden of taxation is to purchase real estate under a Self-Directed IRA or 401K. These structures are very easy to do in Belize and allow Americans to purchase an off-shore investment property using investment funds. The benefits of ownership under these legal entities include; access to capital for investment, and less taxation on capital gains, thus earning greater profits from the Belize real estate investment.

Real estate investors (from the US) can hold investment real estate in an IRA or 401K to gain access to capital (without paying high taxation) and reduce the tax exposure (as long as the investment capital has not been distributed to the IRA owner).

Under the IRS’s self-directed IRA rules, contributions to Self-Directed IRA accounts can be used to purchase real estate (commercial, residential, or raw land) inside and outside the United States. This allows investors to use Self-Directed IRA funds or a 401K to invest in Belize real estate.

However, contributions to offshore real estate IRAs are subject to additional rules.  For example, while the property in your IRA can be rented to others, you can’t rent it out to your family. The property can also not be used for your own personal use (it has to remain strictly an investment).

Another advantage is that the rental income from an offshore Belize real estate investment through IRA is deferred and can be made tax-free if purchased using a ROTH IRA.  Under this setup, you could, in theory, collect decades’ worth of rental income and not pay US tax.  You only need to worry about taxes when you distribute the income from the property to yourself in the future.


Self-Directed IRA

How a Self-Directed IRA Works


Self-Directed IRA For Rental Income


Benefits of a Self-Directed IRA