Purchasing international real estate for the purpose of renting it out long-term to locals and short-term to tourists can be a wise decision. Not only do you stand to get a steady income from the rental income, but you’ll also potentially have a place to stay when you wish to travel.
At Remitly, we know from talking to our clients that entering the global real estate market can be daunting. Those new to investment properties may wonder which are the best places to buy rental property abroad.
While there are many good options around the world, Latin America is a prime location. From 2010 to 2019, international tourism in the region increased by 60%, and now that pandemic-related shutdowns have ended, millions of people are flocking to the area again. In addition, real estate prices in many Latin American cities are significantly lower than the going rates for homes and condominiums in popular destinations in North America, Europe, and Australia.
To help you explore your options for purchasing international real estate, we’ve put together this list of some of the best places to buy rental property in Latin America. When creating the list, we chose cities based on four criteria: the overall cost of living, the lifestyle in the area, tourism, and property prices. Read on to discover our picks and get tips on buying international real estate.
Los Cabos, Mexico
The twin cities of Cabo San Lucas and San José del Cabo are commonly referred to as Los Cabos, and they are located on the southern tip of Mexico’s Baja Peninsula. Both cities are known for their sandy beaches and excellent conditions for sailing and snorkeling, yet they have distinctive personalities. Cabo San Lucas is home to a booming nightlife scene, while San José del Cabo is quieter and a popular destination for tourists and families.
Cost of living
The total cost of living in Cabo San Lucas for one person is around $944 per month, with rent included. A family of four can expect to pay around $2,387 per month to live in the city. In San José del Cabo, the cost of living is less at around $795 per month for singles and $1,771 per month for a family of four.
Lifestyle
Los Cabos provides the opportunity to live in luxury close to the beach while enjoying year-round average temperatures of around 78°F (24°C) and is home to a large expat community as a result. As a tourist hotspot, the area has a solid police presence, making it safer to visit and live in than many other cities in Mexico.
Tourism
Tourism is huge in Los Cabos and the backbone of the local economy. In 2021, more than 2.8 million people visited the twin cities, and visitation from American citizens grew by 47.3% during the first half of 2022 alone.
Property prices
According to the real estate website Own in Cabo, the average home price in Los Cabos is $368,644, with prices ranging from around $48,500 to $4.15 million.
Key resources
- Remitly’s guide to the Best ways to send money to Mexico
- U.S. State Department travel information for Mexico
Santo Domingo, Dominican Republic
The capital of the Dominican Republic, Santo Domingo, is situated on the southern coast of the island where the Ozama River flows into the Caribbean Sea. The city is well known for its historic Zona Colonial area, which dates back to the 1500s. In addition to being home to beautiful beaches, the city also boasts numerous museums dedicated to art and history.
Cost of living
For a family of four, the monthly average cost of living in Santo Domingo without rent is around $2,675, and single people can expect to pay around $745 per month.
Lifestyle
Santo Domingo offers all the services and amenities you’d expect in a major city, plus the perks of beachfront living. Apartment and condominium living are the norm in the city.
Tourism
In 2022, tourism in the Dominican Republic reached a record high, with more than 8.5 million people visiting the island nation.
Property prices
The price to purchase an apartment in Santo Domingo averages around $194.52 per square foot in the city center and $123.34 per square foot in the surrounding areas. As of June 2023, the range of prices for properties on Realtor.com was $51,876 for a one-bedroom apartment to over $5 million for a large luxury home.
Key resources
- Remitly’s guide to Christmas in the Dominican Republic
- U.S. State Department travel information for the Dominican Republic
Arequipa, Peru
Arequipa is Peru’s second most populated city and capital of the Arequipa department in southwestern Peru. The city offers spectacular views of the Chili River Valley of the Andes Mountains. Many of the original buildings from the city’s founding during the colonial era remain standing, including the Basilica Cathedral, home to a museum dedicated to art and local history.
Cost of living
The cost of living in Arequipa is very affordable. Single people can expect to spend around $435 per month without rent, and the average monthly cost for a family of four is about $1,517.
Lifestyle
With pleasant spring-like weather year-round and all the amenities and services you’d expect in a major city, Arequipa offers a comfortable lifestyle for expats. The city is clean, safe, and free of the crowds and pollution found in Peru’s other major metropolitan areas.
Tourism
Tourism is on the rise in Arequipa as social media posts from influencers have allowed people from around the globe to discover the beauty of the colonial city. Arequipa also receives plenty of Peruvian tourists. In fact, in 2018, it attracted more tourists from Lima than any other city in Peru.
Property prices
The price to purchase property in Arequipa averaged $145.20 per square foot in the city center and $107.74 per square foot in surrounding areas as of June 2023.
Key resources
Cuenca, Ecuador
Cuenca is a picturesque destination for travelers and expats, located in the heart of the Andes mountains in southern Ecuador along the Tomebamba River. The waterfront area is home to a popular marketplace, and tourists flock to the Parque Calderón central plaza to snap photographs of the Catedral Nueva. This beautiful blue-domed church took nearly a century to build.
Cost of living
The cost of living in Cuenca is more affordable than in many major cities in the U.S. and Canada, with an average cost of $511 per month without rent for a single person and average monthly costs of $1,831 for a family of four.
Lifestyle
Cuenca offers the comfort of spring-like weather year-round, plenty of cultural activities, and a wide range of amenities and services. The city is also home to a large expat community.
Tourism
The number of visitors to Ecuador steadily increased from 2009 to 2019 and has begun to rebound. Overall, the country is the sixth most popular tourist destination in South America.
Property prices
As of June 2023, property prices in Cuenca on Realtor.com ranged from $85,000 to $2.5 million, with listings including everything from one-bedroom apartments to luxury four-bedroom homes.
Key resources
- Remitly’s guide on how to safely send money to Ecuador
- U.S. State Department travel information for Ecuador
Medellin, Colombia
Situated high in the Andes, Medellin is the capital of the province of Antioquia. The city’s pleasant weather has earned it the nickname “City of Eternal Spring,” and it’s well known for its Flower Festival held every summer. Other popular attractions include the Museo de Antioquia history museum and Botero Plaza, home to statues by famous sculptor Fernando Botero.
Cost of living
The cost of living in Medellin is very affordable. A single person will spend an average of $459.10 per month in the city, excluding rent, while monthly costs for a family of four average $1,600.
Lifestyle
Medellin is a popular destination for digital nomads who come for the weather, the beautiful scenery, and the low cost of living. The city’s locals tend to be warm and welcoming, and you can access the amenities and services that are standard with living in a major city.
Tourism
In recent years, Medellin has become known as the former home of the notorious gangster Pablo Escobar. Although the city has tried to move past its association with him, many international tourists flock to Medellin to learn more about him. On the whole, tourism is growing in Colombia, with the number of international travelers increasing by 41% from 2019 to 2022.
Property prices
As of June 2023, property prices for listings in Medellin on Realtor.com ranged from $50,000 for small one and two-bedroom apartments to more than $700,000 for homes and three-bedroom apartments.
Key resources
Dominical, Costa Rica
Dominical sits where the Baru River flows into the Pacific Ocean southwest of Costa Rica. The city is well known for excellent surfing, and the surrounding tropical rainforest has many trails for hiking. Visitors come to soak in the sun on the beach and take in the beauty of the nearby Nauyaca Waterfalls.
Cost of living
Specific data for the cost of living in Dominical is hard to come by. However, Costa Rica is known for being an affordable place to call home. A family can easily live on a budget of $1,500 per month or less, while an income of $3,000 per month is enough for a luxury lifestyle. The site International Living states that a monthly budget of $2,180 to $3,3830 is ideal for covering living expenses and renting a two or three-bedroom furnished home in Dominical.
Lifestyle
Dominical has earned a reputation for being a laid-back surfer’s paradise. It’s also a popular place for retirees who come for the affordable cost of living, picturesque landscapes, and warm weather.
Tourism
Tourism is vital to the Costa Rican economy. More than 1.7 million people visit the Central American nation every year.
Property prices
As of June 2023, prices for homes in Dominical listed on Realtor.com started at around $300,000. Multiple luxury homes were listed for sale at $1 million and up. There were also land listings ranging from $45,000 to over $2 million.
Key resources
Fortaleza, Brazil
Fortaleza is the capital of the state of Ceara in northeastern Brazil. The city is home to beautiful beaches with striking red cliffs and blue lagoons but also has a thriving cultural scene. Visitors and residents can attend performances at the well-known José de Alencar theater, and the neo-Gothic Catedral Metropolitana is a popular spot for snapping selfies.
Cost of living
The cost of living in Fortaleza is low compared to prices in major cities in the U.S. and Canada. Without rent, the average monthly cost of living is $507 for a single person and $1,765 for a family of four.
Lifestyle
As one of Brazil’s largest cities, Fortaleza offers plenty of amenities and services for residents and visitors. Its status as a popular tourist destination means that many people speak at least basic English.
Tourism
The 2014 FIFA World Cup introduced Fortaleza to the world, and tourism has been on the rise in the city ever since. In April 2022, Ceara saw the biggest year-over-year increase in tourism of any state in Brazil, with 135.83% growth.
Property prices
As of June 2023, listing prices for real estate in Fortaleza on Realtor.com ranged from $20,000 to over $2.4 million. Most listings were for apartments rather than individual homes.
Key resources
- Remitly’s lists of facts you probably didn’t know about the Brazilian real
- Remitly’s guide to things you should know before moving to Brazil
Tips for buying investment property in Latin America
To choose the right location and make the buying process as simple as possible, follow these tips once you find properties that fit your budget and suit your preferences.
Research the political and economic climate of countries before you buy
All of the countries featured on this list are known for having stable political and economic systems. However, situations can change, and other Latin American nations may have more turbulent conditions.
As a result, it’s always best to do some research into the current climate before you purchase international real estate. Read news articles from trusted sources like Reuters and the Associated Press to stay up to date on the latest information.
Consult an international real estate tax expert
Each Latin American country has its own tax laws. In some cases, owning property as a foreigner may subject you to property tax, income tax, and other taxes. Your investment income may also impact your tax situation in your home country.
Before investing, talk to a tax attorney or accountant with expertise in international real estate to find out what the tax implications will be. This way, you won’t end up with an unpleasant surprise at tax time and can ensure that you comply with tax laws at home and abroad.
Double-check visa and immigration requirements
If you’re purchasing global real estate with the hopes of traveling there frequently or one day retiring there, get to know the country’s tourist visa and immigration requirements before you buy.
In some countries, purchasing a property worth a minimum amount may automatically qualify you for temporary or permanent residence status. Other countries may consider owning real estate a pathway to residency but require you to live in the country for a set number of days each year to qualify.
Knowing what the rules are upfront can help you make an informed decision. We included links to each country’s immigration websites in their respective sections. If you’re considering another country, check out the government’s immigration website or contact the embassy or consulate in your home country for more information.
Enlist the help of an international realtor
An international realtor can be a valuable asset during your global real estate search. Knowledgeable real estate agents can match you with properties that fit your price range and investment goals and help to streamline the buying process.
When selecting a realtor, ask how much experience they have assisting buyers and sellers in the area where you’re looking, and read online reviews to find out what previous clients have said about them.
Tour the property and the neighborhood before you buy
The Internet makes it possible to tour properties virtually, so technically, you never have to leave home to buy international real estate. However, it’s still a good idea to schedule a trip and see any property yourself.
In addition to conducting a thorough inspection of the property, stroll through the neighborhood. View everything through the eyes of a tourist, asking yourself what you would think of the place if you were visiting from abroad. After all, online reviews can make or break your rental business, so you want to ensure that both the property and the neighborhood will make a positive impression on your renters.
Consider the additional costs of owning a rental property
You’ll have ongoing costs when you buy international real estate to list on the rental market. The property will require maintenance and upkeep to remain in good condition. Plus, you’ll need someone to clean the property thoroughly after each guest departs.
Make sure you factor in the extras you’ll need to pay for, particularly if you’re seeking financing to purchase an investment property. This way, you can feel confident that you can afford the loan payment and the additional costs.
Browse vacation rental platforms
Before you buy, look up the city where you plan to purchase international real estate on vacation rental platforms like Airbnb and Vrbo. Find out what other property owners currently charge for stays at properties similar to the ones you’re considering. Also, look at the rules and fees for renting a property through various platforms so you know what to expect.
Use Remitly to send money internationally
During the buying process and beyond, Remitly can help you easily send money to Latin America. With just a few clicks, you can transfer money to your international bank account, pay maintenance staff and cleaning personnel, and more.