Foreign Ownership of U.S. Real Estate

Common ways for non-residents to hold ownership of U.S. real property

Listed below are some common ways for non-residents to hold title (ownership) in US real property. Please note:- The list below is not exhaustive, is intended for information purposes only and is not a recommendation on how to take title in U.S. real property. Buyers should therefore not rely on these definitions and should carefully… Continue Reading


Income Tax

Form 1040NR Filed annually to the Internal Revenue Service (IRS) due by June 15th (for most non-resident homeowners) All property owners residing offshore who receive income from their investment and rental properties, where IRS withholding has not been applied, must file a U.S. income tax return. The U.S. tax year runs January to December and… Continue Reading


Capital Gains Tax

Payable on the net gain of your property to the IRS Defer Capital Gains Tax by using 1031 Exchange FIRPTA Withholding (15% of gross sale price of property). Long Term and Short Term Gain Capital gains tax is payable on the net gain from the sale of property. The gain is calculated by taking the sale price… Continue Reading


Withholding of 30% is applied to gross rental income received by a managing or rental agent on behalf of a non-resident owner of U.S. rental property. Non-resident rental property owner Foreign individuals and foreign corporations may elect to have their passive rental income taxed as if it were effectively connected with the U.S. trade or business. Once… Continue Reading


Reporting to the Bureau of Economic Analysis is Required when …

All foreign investments in U.S. business enterprises in which a foreign person or foreign corporation owns a ten-percent-or-more voting interest (or the equivalent) are subject to reporting, including all ownership of real estate, improved and unimproved, other than for personal use. Reporting to the Bureau of Economic Analysis (BEA) is required pursuant to the International… Continue Reading


U.S. Wills, Trusts & Estate Tax for Foreign Investors

Wills & Trusts Technically, whilst you are not obliged to have a U.S. will, significant delays and expense may be incurred where there is no U.S. will in place in the event of death, particularly in the case of a single owner. Even when holding a will in your home country, probate in the U.S.… Continue Reading


FAQs About Rental Property Taxes

What is the U.S. tax filing year? The U.S. tax filing year runs January 1st – December 31st What tax returns have to be filed? U.S. Non Resident Income Tax Return – Form 1040NR See Income Tax Tangible Personal Property Tax Return to the Property Appraiser’s Office where your property is located See Tangible Personal… Continue Reading

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