Individuals who are not US citizens or residents face very different and unique challenges when purchasing and investing in real estate in the United States. There are many traps for the unwary whether a foreign person is purchasing a vacation property, investment property, or real estate trade or business. The ownership structure can have an impact on creditor/debtor concerns, tax liabilities and IRS filing requirements, or transferring ownership upon death or disability.
It is important to consult with an attorney who can understand the complexities and implications of how the different laws intersect in order to maximize achieving a person’s objectives that include minimizing tax liabilities, reducing exposure to unknown future creditors, and account for transfer of ownership due to death. The inner workings of the various laws requires both planning and drafting of legal documents to address the primary concerns of any foreign real estate owners in addition to their personal and specific desires. A foreign person purchasing real estate in the US should also make sure that their US attorney communicate with their attorney in their home country to address any implications the ownership structure may have in their home country.
Lastly, the United States is engaged in both income and estate tax treaties with several countries around the world. These tax treaties offer beneficial treatments that are not otherwise offered to nonresidents with US property or income from other countries with no tax treaties or different tax treaties. Understanding how these treaty provisions are exercised or effect the tax responsibilities and requirements.
Anidjar Law is uniquely skilled to assist nonresidents in the purchase of real estate in the US as Anidjar law is a premier tax, trusts, and estate law firm in Broward county.