Can a foreigner buy property in the US? The answer is yes. It is really much easier than one thinks.
TYPE OF PROPERTY
Single family homes: The purchasing of single family homes is really much easier than a foreigner thinks. Obviously , in the day and age where we are just recovering from the foreclosure debacle, it is of utmost important that a buyer hire a real estate lawyer who is also a title agent title company in order to examine title. Title will need to be free and clear of any and all judgments and liens, and the foreclosure file solid. That means, no party can come back after the fact and make a claim for the property. We perform all these services as a full and complete real estate and title company
Condominiums. Condominiums are just as easy to purchase, the only difference being a Board of Directors screening or background check of the foreigner as well as approval. These too require a knowledgeable attorney and title company to streamline the process for the foreigner.
Cooperatives. These are a little more difficult to purchase as they often require all purchasers to be interviewed and they legally have the ability to reject a buyer without providing a reason. A cooperative or Co-Op may also have strict requirements for ownership and not cater to non-resident owners. We can streamline the process and be the liaison between the board and the buyer in order to ensure that all moves quickly and easier for the buyer.
At the Law Offices of Jacqueline Salcines, P.A. we represent borrowers and homeowners with all of their real estate and mortgage needs. From initial applications and searching for programs for their mortgage needs, to working closely with the borrower and lender to obtain the full amount required, we are there every step of the way. Attorney Jacqueline Salcines, Esq. personally handles all her own closings and is at the closing table with you, the borrower, to explain all documents requiring signature. This includes signing of the mortgage, promissory note, truth in lending and all disclosures.
TAX IMPLICATIONS
While foreigners do not have tax implications at the time of purchasing, there are implications at the time of sale. A foreign person may need to pay gains tax and FIRPTA withholding tax on the capital gains. FIRPTA is a withholding tax for foreign sellers of 10% of the gross sales price. this is remitted to the IRS to ensure that the tax return is filed that discloses the gain. If the seller is current on all their taxes owed to the IRS, then they will receive a refund of the 10% that was withheld. Trust with foreign beneficiaries and foreign corporations that sell a US property also have a higher withholding of 35% of the amount realized on the sale.
TYPE OF ENTITY FOR THE PURCHASE
As both an accountant and business lawyer, Jacqueline Salcines, PA has knowledge of what is the best structure for your purchase. Should a foreigner purchase in their individual capacity, or form an LLC (limited liability company)? Federal corporate tax rates can be high and there is no capital gains treatment for C corporations. So knowing the best entity to make the purchase before you enter into a contract is smart business practice.
The Law Offices of Jacqueline Salcines, P.A. is a full service real estate law firm offering real estate, title, mortgage and escrow services.
Contact us today. No office visit is required and the phone consultation is 100% free of charge. Call and speak to attorney Jacqueline A. Salcines, Esq. Today!
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Jacqueline A. Salcines