Foreigners Buying Real Estate in the United States: What Are Your Advantages?

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Foreigners who purchase a  property in the United States are often unaware of the numerous benefits associated with the property acquisition. Here are several advantages for foreign nationals to purchase real property in the United States of America as an American Company.  An American Company is considered an American entity with advantages of an American Citizens who purchases real property in the United States.  Some of the many advantages are as follows:

  • The American Company is treated as an American Citizen.
  • The United States will not tax a 10% tax withholding during the sale of property owned by an American Company as it would to a foreign national.
  • The American Company can claim the property as the Homestead property, which will prevent judgments from being attached to the property, a foreign national does not have the privilege of claiming a Homestead property.
  • The United States will tax 70% of the value of the property in the event of a foreign national’s death of the foreign national’s property.
  • Public Records show the nationality of the property owner.
  • An American Company may file United States tax returns for income received for the rental of their real property and may use all expenses incurred as deductibles.
  • An American Company’s may open a United States bank account provided they obtain a Tax Identification Number in order to conduct business such as the collection of monies received for the rental of their real property and provide a record of expenses paid through the bank’s statements/records.

There are many other advantages; however these are some of the most important advantages foreign nationals benefit from when purchasing as an American Company.  Law Offices of Kravitz & Guerra recommends that all foreign nationals purchase as an American Company in order to take advantage of the benefits provided above, as oppose to foreign nationals.

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