Buying Property in Costa Rica: Tax Traps US Expats Must Avoid
February 10, 2026
Buying property abroad is not just a lifestyle decision, it is a tax decision. In this episode, Arielle Tucker, EA, CFP, and international tax expert Alex McGowin, CPA, break down the hidden tax pitfalls US expats face when purchasing foreign real estate. From misunderstood LLC structures to costly compliance mistakes, they explain what can go wrong, how to avoid it, and why planning early is essential.
Buying real estate abroad can be an exciting step for US expats and globally minded investors, but the tax mistakes can be costly without proper planning.
In this episode of Passport To Wealth™, Arielle Tucker, EA, CFP, is joined by Alex McGowin, CPA, an international tax expert with deep experience advising US expats and Americans investing abroad. Together, they break down the most common tax traps US citizens face when purchasing property in countries like Costa Rica, Panama, and across Latin America.
Alex explains why foreign LLCs rarely work the way Americans expect, how missed elections can turn capital gains into ordinary income, and why many expats unknowingly create controlled foreign corporations that lead to compliance headaches and unnecessary taxes. They also discuss rental properties, Airbnb income, personal use rules, and what happens when investors wait too long to get proper advice.
If you are considering buying property abroad or already own foreign real estate, this episode will help you understand the hidden risks, planning opportunities, and why getting advice on the front end can protect your long term wealth.