Prewitt Law P.C.: Attorney for Foreign National Entrepreneurs

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From searching to signing; your guide through the stages of acquisition

A foreign national wishing to invest in real estate is required to get an Individual Taxpayer Identification Number (ITIN), which can be issued by the Internal Revenue Services (IRS) or an accountant approved by the IRS.

Before purchasing real estate in the US, the following are key considerations for a foreign investor.

Before purchasing real estate in the US, the following are key considerations for a foreign investor.

From speculation to closing on your property

Use our experience to protect your investment, and maximize your ROI.

Location

In the United States, each state has its own set of regulations for the purchase of real estate. New York has always welcomed investors from around the world. The New York real estate market is dynamic, stable and offers potential for a sizable return on investment.

Financing

It is possible for a foreign investor to obtain financing in the United States for the purchase. However, many banks require foreign buyers to have a minimum amount in a bank account, and some banks set limits for their loans. Moreover, non-US citizens are more likely to pay higher interest rates on loans, and are often required to make a larger down payment.

Closing

It can be costly for a buyer living abroad to travel back and forth to the US to handle each step of a real estate transaction. An investor could instead give a “power of attorney” to an agent in the US. This agent could be approved to represent him or her at every step of the transaction, and ultimately to sign the contract for sale on the owner’s behalf.

Taxes

Foreign investors should consult with a US tax expert to assimilate an overview of tax liability before purchasing a property. Moreover, under the Foreign Investment in Real Estate Property Tax Act (FIRPTA), all sales of property by non US-citizens or residents are subjected to US capital gain taxes. Accordingly, the IRS will withhold 10% of the gross purchase price of the property.

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