Buy a Property in the United States - Choosing the Right Title Company
By: Genilde Guerra •
Buying a real estate property in the United States sounds like an appealing idea to numerous property investors, and those looking for a second residence in an economically flourishing geographic area. While some foreign buyers purchase home with the goal of vacationing in the United States, others structure their properties as income-producing investments. In all cases, Foreigners planning to purchase a property in the United States may encounter numerous legal and administrative challenges during the property transaction process. Moreover, they may be subject to FIRPTA (Foreign Investment in Real Property Tax Act of 1980), which is equal to 15% of the total property sale value. Without appropriate legal assistance, foreign buyers may encounter obstacles on the way, and may also make uninformed decisions with adverse long-term effects.
Your residence, immigration status and the purpose of your property purchase may dictate the amount of taxes you are obligated to pay to the U.S. government. According to Genilde Guerra, an experienced tax, immigration & real estate attorney in the Miami-based Law Office of Kravitz and Guerra, rigorous pre-immigration tax planning is an important first step for potential property investors in the United States. Choosing the appropriate TITLE company for the property purchase is fundamental for a smooth, burden-free and (possibly) tax-free transaction.
Providing the right title to your newly purchase property can prevent you from numerous legal complications related to the transfer of ownership.Offshore company can also be an effective tool for the smooth transition of ownership to your heirs when you die. If you title a property under your own name, distribution of your assets maybe be subject to local laws, and this may not be your wish. Using an offshore company can help you eliminate probate in the country in which the property has been purchased. Also, the right property title may help you maintain the anonymity of your assets. An efficient title structure also provides you with optimal control over your assets. You should always hire an experienced real estate lawyer who will assist with the right offshore structure setup.
Numerous foreign buyers are unaware that buying a property under their own name can cause them to pay unnecessary taxes, such as the aforementioned FIRPTA. With the assistance of an experienced tax, real estate & immigration lawyer, foreign investors can minimize or completely avoid unnecessary tax obligations.
Structuring your property in the right way is very important to avoid various kinds of complications. Setting up an offshore company is an excellent way of keeping your assets safe, under control and in anonymity. Attorney Genilde Guerra defined the three major benefits of an offshore company as tax reduction (or avoidance in a legal manner), asset control and risk minimization.
Another one of the most distinguished benefits of an offshore structure is assets protection. With numerous lawsuits taking place in a country like the United States, it is important that you keep your assets safe by placing them in a protected offshore structure. Also, an offshore company facilitates investment diversification. Investment diversification is the process of investing assets in multiple areas with the purpose of minimizing business risk.
Moving to another country and specifically purchasing real estate there can’t be quite complex for foreign individuals.
It is very important that you seek the assistance of a qualified real estate & tax lawyer who will help make your transaction smoother. Without appropriate legal advice, you can avoid unnecessary taxes, and complications in the administrative process.
property, real estate investment, invest in the US, Genilde Guerra, US investment, business