Foreign Investment in U.S. Real Estate - A F.I.R.P.T.A. Introduction

Introduction

Whether in an up or down economy, the U.S. is attractive for foreign investors. U.S. economic and legal transparency, as supported by appropriate legal protection and a predictable regulatory environment, further enhances the attraction for foreign investment. According to Henley & Partners, a key concern for high net worth individuals (“H.N.W.I.”) is unease over political and economic uncertainty, which continues to drive key investment decisions such as owning wealth in offshore structures. As a result, real estate has now become the third-largest asset class – with residential property being more sought-after than commercial property for those over 40 years old.

Like anyone else who invests in real estate, foreign investors buying real estate in the U.S. must evaluate the terms and conditions of the purchase to determine if it makes sense in a particular set of circumstances. However, non-U.S. investors must evaluate an additional factor that will come into play when they dispose of the property, the Foreign Investment in Real Property Tax Act (“F.I.R.P.T.A.”).

Click here to read the article in its entirety. 

Please note: This content is intended for informational purposes only and is not a replacement for professional accounting or tax preparatory services. Consult your own accounting, tax, and legal professionals for advice related to your individual situation. Any copy or reproduction of this article is expressly prohibited. Any names or situations have been made up for illustrative purposes — any similarities found in real life are purely coincidental. 

 About the Author 

Alicea Castellanos is the CEO and Founder of Global Taxes LLC, a firm that provides personalized US tax advisory and compliance services to high net worth families and their advisors. She has more than 17 years of experience in US taxation of individuals from around the world. Prior to forming Global Taxes, she founded and oversaw operations at a boutique tax firm and worked at a prestigious global law firm and a CPA firm. In 2020, was selected for the prestigious Forty Under 40 Award by the New York State Society of Certified Public Accountants for notable skills and visibly making a difference in the accounting profession. 

Alicea specializes in US tax planning and compliance for non-US families with global wealth and asset protection structures that include non-US trusts, estates and foundations that have a US connection, as well as foreign investment in US real estate property.

Please note: This content is intended for informational purposes only and is not a replacement for professional accounting or tax preparatory services. Consult your own accounting, tax, and legal professionals for advice related to your individual situation. Any copy or reproduction of our presentation is expressly prohibited. Any names or situations have been made up for illustrative purposes — any similarities found in real life are purely coincidental.