Buying a home in the United States is expensive. Your dollar would go further elsewhere, so why not buy property overseas? You can live in your own slice of paradise for a fraction of the cost of living in America if you know where to look. 

Why Should You Look at Properties Outside the US?

Whether you live in Nevada or Michigan, buying a house is expensive. A residential property costs around $522,0000 in the United States. You’d think large residential properties skew the average, but that’s not the case. In 2025, single-family homes go for over $462,000. 

A 20% down payment used to be laughable, but it is quickly becoming the norm. On top of that, insurers are pulling out of disaster-prone states like Florida, making homeownership risky. As a result, many people rent apartments or live with relatives. 

As of 2025, less than 50% of Millennials own a home. The homeownership rate for Generation X and baby boomers is higher — roughly 70% and 80%, respectively — but there’s still a gap. For many, homeownership feels out of reach. In 2020, 18.2% of Millennials said they expect to rent forever. Buying property overseas is an affordable alternative.

What to Consider Before Buying Property Overseas

Before buying property overseas, look into how easy it’ll be to move. Many offer permanent residency, but do not grant full citizenship. Some have reciprocity treaties with the U.S., so they let you buy property without establishing residence. 

Also consider cultural differences, which impact everything from tipping culture to social cues. Do you know the native language well enough to direct a taxi driver or ask a clerk where an item is? Look into the property’s proximity to essential services like bus stops, schools and hospitals.

The last major consideration involves real estate prices. In a buyer’s market — when there is a supply surplus or shortage of homebuyers — you will have better terms and an easier time negotiating, culminating in you paying less than the market price. Make sure to evaluate nearby properties to understand the stability of your investment. 

Affordable Countries Where You Can Buy Property

Panama, Portugal, Mexico and Spain are affordable countries for purchasing property as an American. Honorable mentions include Costa Rica, Italy, Canada, Malta and Greece. 

Panama

If island living, strikingly blue water, misty rainforests and tropical beaches sound like paradise, you may want to move to Panama. You’ll pay about $139 per square foot on the lower end. The average home costs $95,000. Essential foods are half as expensive here and a doctor’s visit costs less than a coffee. 

Moving here gets you a comfortable climate year-round and a lower cost of living. The drawbacks include an intense rainy season, a potential language barrier and a cash-centric society. You can easily apply for residency through the Friendly Nations Visa.  

Portugal

Portugal’s bustling cities blend into rolling hills, cliffs and crystal clear water. The average price of property here is $145 per square foot, ranging from $168 to $108 per square foot depending on the number of bedrooms. While you do not need a visa to enter Portugal — which simplifies house hunting — you need a Portuguese residence permit to stay longer than 90 days. 

Home prices have been steadily increasing for years because demand outweighs supply. The cost of living is also rising due to inflation. However, Portugal is still affordable. Beyond price, it has pleasant weather and safe neighborhoods. According to the 2025 Global Peace Index, it is one of the top 10 safest countries in the world. 

Mexico

Mexico has rainforests, deserts, coral reefs, canyons and ancient Mayan ruins. Its proximity to the U.S. makes it a great choice. It’s also one of the most affordable countries to buy property in. The median home selling price is just over $63,000 in 2025. The national average price per square foot is about $153. 

You can become a permanent resident by holding a temporary residence card for years, having close family connections in Mexico or showing proof of income as a retiree. 

Spain

Spain is famous for its laid-back lifestyle, Mediterranean coastlines and massive cathedrals. The average home costs around $289 per square foot, slightly higher than the $231 U.S. average. However, properties are typically smaller, so their total cost is lower. 

This country is an excellent pick if you’re priced out of America’s exclusive neighborhoods but want to live in a beautiful, culturally rich urban area. However, the property transfer tax rates, notary charges and registry fees tend to be higher. 

Advice on Navigating the Process From Start to Finish 

Navigating the buying process in a foreign country is complex. You must research to ensure you get a good deal, especially if you can’t visit in person. If you don’t speak the native language, you should get a translator to ensure everything goes smoothly. 

Consider utilities, neighborhoods, insurance, security and local laws. If you get a squatter, what are your rights? Who do you call if you need to replace your air conditioning system? Do you know enough about the area, customs and language to navigate these situations?

Managing your finances as an American expat property owner means understanding your tax liability. First, you should save at least 20% of the property’s purchase price for a down payment to avoid private mortgage insurance. Be mindful of property transfer taxes, real estate agent charges, notary fees and luxury property taxes.

When you eventually go to sell, you may be subject to a significant capital gains tax that only applies to foreigners. Every country is different and laws change regularly, so you should consider consulting a legal professional to cover your bases. 

Do Your Due Diligence Before Moving Overseas

Moving overseas is a big commitment, so you should research before committing. Ensure you fully understand the cost of living, real estate market and tax implications. Waiting for a buyer’s market may take time, but it might be worth the money you save.