Foreign Buyers and Sellers – 2 Important Considerations Before Buying in Florida

Foreign Buyers and Sellers – 2 Important Considerations Before Buying Real Estate in Florida

Tax planning and Visa Options

These are going to be the most important things to research before you buy property in Florida or anywhere else in the United States. Tax planning is also important if you are a foreigner who is selling property in the United States of America.

For Visa options we recommend that you speak to an immigration attorney. The following is not legal advice and is based on generalities:

There are countries that have agreements with the United States for visa-free travel. Some offer like a ‘snow bird’ visa option that lets you stay here for 6 months out of the year.

There are also visas available for family reunification and humanitarian reasons and those seeking asylum here from countries such as Venezuela.

Visas are also available for very highly skilled people in certain fields that the United States is trying to attract and there are some nice options available if you open up a business here and hire people to work for your business.

Tax planning is complicated and we recommend that you discuss your tax situation with a credible international tax attorney. Most tax accountants would not know the implications of each foreigner’s situation.

Depending on the amount of your investment and the country where you are from will determine your tax liabilities. Some of the questions foreigners have are about how much do you need to invest here in the United States in order to become residents for tax purposes.

Estate questions also arise and are subject to taxes so you want to make sure to ask your international tax attorney who is based in the United States about these situations.

If you are planning on substantial investments in the United States you need to consider that pre-immigration tax planning is very important. The higher your net worth is, the more complicated all of this is going to be. Some foreigners could be taxed on their “world wide” income.

There are countries that are friendly with the United States where there are tax treaties in place. These tax treaties allow for you to hold title in your personal name. But don’t rely on that statement. Every situation is different. Please don’t believe blanket statements. Consult with professionals.

Selling property in the United States when you are a foreigner makes you subject to FIRPTA, The Foreign Investment Real Property Tax Act. This law states that 10% of the sales prices is to be withheld in advance with the Internal Revenue Service subject to a final determination of value. There are situations where this can be avoided but you should be prepared in advance for this situation.

REALTORS® such as ourselves who are experienced and have taken certification courses to work with foreign buyers and sellers are NOT attorneys and we are NOT tax professionals. We know a lot about helping you to move here and buy property in Florida. We still urge you to consult with immigration and tax attorneys before making a large purchase or selling your U.S. holdings.

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