The real estate of the world can be yours, but you must know the tax laws and regulations covering international real estate ownership.
With beautiful real estate available all around the world, you might want a vacation home in the South of France or in the Dominican Republic. With the recent real estate upheaval in the United States, coupled with a favorable exchange rate, many foreigners have taken advantage of low prices and purchased vacation homes or investment property here.
In either case, buying the property and handling the taxes on it makes you subject to some different rules than if you were purchasing property in your own country. To avoid unwanted surprises, you should work with a CPA firm like Baldwin Accounting that is savvy in working with foreign investors in U.S. real estate and knowledgeable about real estate investments on the international market.
Foreign Investors In U.S. Real Estate
At Baldwin Accounting CPA in Orlando, we can work with you as a foreign investor to obtain the proper U.S. tax ID number from the IRS and also help you obtain the proper visa. Owning property does not guarantee residency, so you will need special permission to stay in the United States, such as with a work visa or with a special EB-5 investor visa.
We will also work with you to meet special requirements for foreign buyers. For example, as a result of the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), the IRS requires that 10% of the sales price be placed in escrow for taxes; failure to properly follow the guidelines could set you up for a hefty tax penalty.
Foreign Real Estate Ownership
If you are a U.S. citizen looking to buy property in Canada, Mexico, Europe, or any other foreign country, you need to know the tax reporting requirements and the intricacies of foreign real estate before you sign on the dotted line. Baldwin Accounting has worldwide experience in real estate transactions and can alert you to the laws and help you prepare your finances for you knew adventure.
Baldwin Accounting welcomes the opportunity to help you with all types of foreign real estate ownership. Just give us a call at (407) 363-0890 to find out how we can assist you.