So, you're thinking of moving abroad? International property ownership is symbolic of both adventure and cultural sophistication; however, if you've ever looked into fulfilling the daydream, you'll agree that most international transactions can be complex. To make it easier to own a second home overseas, co-ownership companies like Pacaso are redefining the landscape. Pacaso has an expansive list of homes in the United States, but they're also expanding across Europe and Mexico — and there are more regions on the horizon.
I learned about Pacaso's model over the last year, and I'd be lying if I said I wasn't scheming daily about investing in a vacation home. The model is so good. Knowing that they've expanded into the world of international luxury homeownership, I reached out to connect with London-based Joey Byrne, Senior Director of European Expansion at Pacaso. Whether you're charmed at the idea of spending longer stretches in your favorite part of Paris, or ready to kick back on the beaches of Punta Mita, Byrne took the time to elaborate on international co-ownership, explaining how it's a uniquely practical way to experience global living. We're here for it.
The Growing Popularity of International Co-Ownership
Co-ownership is no longer a fringe concept. "Our owners use their homes in London and Paris as a launching pad to the rest of Europe," shares Byrne. "These buyers don't usually have the bandwidth to buy a home abroad, let alone oversee property management when they're not there." To deliver, Pacaso's model removes the friction and offers home buyers real estate in highly-coveted areas in popular European cities and beachside destinations.
As buyers look to second homes as a way to improve their quality of life and satisfy an appetite for culture, the model continues to gain traction. The primary benefits driving co-ownership’s popularity in the domestic market—shared costs, reduced administrative hassles, and professionally managed spaces—are even more appealing in an international setting.
Why Pacaso? Simplifying International Property Ownership
The company has carved out a unique position by making international home ownership more accessible and stress-free.
- Shared Responsibility Reduces Individual Risk: Prime real estate locations like London, Paris, or Cabo can be expensive to buy and maintain. Pacaso's model distributes this financial responsibility between multiple owners, reducing individual risk. Four to eight owners are common with Pacaso, each maintaining a 1/4 to 1/8 share of the residence.
- Hassle-Free Ownership: Pacaso’s model includes full property management, so owners aren't stuck trying to hire foreign vendors for maintenance, cleaning, or repairs. This also alleviates turnover between residents; when you arrive, it'll be completely clean.
- Expert Assistance with Legal Requirements and Financial Logistics: Pacaso offers experienced teams to help buyers with real estate law, taxes, and ownership rights. As Byrne explained to me, shorter-term stays in owned property eliminate the need for a visa, and advisors can also help buyers understand benefits related to financial strategies, like how co-ownership is a way to avoid the Wealth Tax in France.
- Fractional Ownership with Full Enjoyment: The reality of buying a 1/8 or 1/4 share of a home is starkly different than buying a home as a single owner. Not only does it reduce the financial burden, but it makes it possible to purchase a luxury home in some of the best neighborhoods in the best cities in the world. And before you compare it to a timeshare, remember that co-ownership is totally different. Owners have fair, flexible access to the property through a proprietary, anonymous scheduling app, and can sell it anytime without penalty.
- Streamlined Currency and Payment Management: For international properties, currency exchange can raise uncertainty, especially when it comes to foreign mortgages and related wealth tax stipulations. Just as Pacaso does for its U.S.-based home buyers, the company simplifies all the legal logistics as well as the transactions and payments.
- The Global Swap Program: Pacaso’s Global Swap Program allows owners within the Pacaso network to exchange their stays at other locations, broadening cultural and travel opportunities.
A Home Abroad, Without the Headache of Property Management
Co-ownership fosters a meaningful way to live in new cultures. It allows for extended, immersive stays without the need for a visa or application for permanent residence. By buying a second home rather than renting during trips, owners can return repeatedly to the same home, building connections to the local community and truly embracing the rhythms of life in a foreign city.
One of the most significant concerns for prospective international homeowners is property management. From security to managing maintenance, property management abroad can quickly become a full-time job. Pacaso has a long-term view on the matter and is focused on building a successful company with fully-satisfied homeowners. This means that Pacaso handles all upkeep, repairs, and operational expenses, including those unique to each location—whether it’s pool maintenance in Mexico or heating systems in Paris. Owners simply arrive and enjoy their time without the hassle of maintaining a home overseas.
Considerations for First-Time International Investment Property Co-Owners
Foreign real estate transactions are daunting, to say the least, especially for first-time buyers. From understanding local regulations to assessing property maintenance, Pacaso's model simplifies the process for potential buyers, especially non-resident buyers:
- Get the legal advice you need. Navigating foreign property laws and regulations is a hurdle for first-time buyers. Pacaso’s teams work alongside local legal experts in each country, navigating each transaction and interpreting local property laws. This support adds confidence for prospective buyers who look to make sure ownership rights of any overseas property are well-protected.
- Understand how shared fees are organized for co-owners. Each international property has unique upkeep costs, but Pacaso provides clear, upfront disclosures of all fees and operational expenses, allowing owners to budget confidently without surprises.
- Learn about property management, security, and your role in the process. With international ownership, long-term maintenance can be a challenge, especially when owners live halfway across the world. Pacaso has focused on operational excellence, and handles all aspects of property management, from security and repairs to daily upkeep, relieving co-owners of the usual logistical challenges.
Do you need a visa to co-own a Pacaso residential property?
One of the most common questions about owning property abroad is whether a visa is required. Fortunately, buyers don't need a digital nomad or golden visa to co-own a property with Pacaso. While each country has unique regulations regarding the length of stays, many nations offer favorable 90-day to 6-month tourist policies, allowing buyers to enjoy their property several weeks per year without residency complications.
What happens if I want to sell my share?
Putting your share up for sale with Pacaso is as easy as buying it. The company is invested in helping owners in finding interested buyers. Sellers can choose their own pricing, and Pacaso will help create listings and help find a buyer. Worried about losing money like you would with a timeshare? Data shows that property values remain on the rise, with co-ownership shares outperforming the average property market appreciation by 4.7%.
How are scheduling and reservations managed across different time zones?
Pacaso’s reservation system is app-based, anonymous, and designed to accommodate owners across various time zones. It works to guarantee homeowners their allotted time in the home based on the size of each owner's share. By booking through the platform, owners can schedule their housing stays well in advance, trade weeks with another homeowner, or exchange through the Global Swap Program.
What if I want to bring guests or host family gatherings?
As with any home, you’re free to host guests during your stay. Let them enjoy the journey, too! Pacaso's model supports shared ownership while respecting each owner’s privacy and guest privileges, making it ideal for family gatherings and vacations.
How secure are my ownership rights in a foreign country?
Pacaso works with local legal teams in each country to make sure that all ownership agreements and property registry fees are solidified according to local regulations. Co-owners should have peace of mind in knowing that their investment is protected under the respective country’s property laws.
