Will the title company put this property under our LLC name, and won’t be required to legally inform HUD/tax authorities. - will it influence property taxes once we move to conventional loan in 3 yrs? 

Often times you will pay much more in taxes than if you pulled the money out, paid the taxes and penalty and then started investing in real estate.For example, with the financing you mentioned, the IRA must pay taxes on the portion of the profit earned by financing. 

As an update on what we have been doing, we have finally completed on the house in Peniche! 

Attractive Tax Environment for InvestorsGermany offers favorable tax policies for property investors.

I've finally found a property that could be a good fit for my primary residence- if I can get a good price on it.  

@Rebecca GonaBigger Pockets is a great place to find a tax accountant that specializes in short-term rentals. 

You have the ability to sell while limiting your capital gains tax because you lived in 2 of the last 5 years. 

If you think ahead, you can minimize recapture with the right tax planning.So what is recapture?

I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible. 

@Brad Kanouse Using Traditional IRA funds for an investment property typically incurs income tax and a 10% penalty if you’re under 59½, as investment properties don’t qualify for tax exemptions.