Knowing these key bits of information can really help when investing in USA real estate or helping an international client.
Q: Do you need a social security card to purchase property in the U.S?
A: Nope, nor do you need a tax I.D. number (ITIN). All you need is a passport or driver’s license. However, if you want to make money from that property (renting, selling, etc.) you do need some way for the IRS to identify (and tax) you.
Q: Does that mean foreigners have to pay double taxes (here and in their home country) on property-related income?
A: Depends on where they’re from. The Internal Revenue Service’s Publication 901 is a constantly changing list of tax treaty agreements between the U.S. and dozens of other countries that can help prevent double taxation if there is a treaty in place.
Q: What’s the difference between a resident alien, a foreign national, an immigrant, and a non-resident alien?
A: “Foreign national” is a general term that applies to immigrants, investors from abroad, and vacationers alike. An immigrant generally has a green card and is taxed like a U.S. citizen. A resident alien hasn’t gotten their green card, but has been in the U.S. for more than 182 days. If an alien has been in the country for less than 182 days, they’re a non-resident. But beware: If your client has built up a “substantial presence” in the country by being around for a cumulative 182 days over the past three years, they too could be classified as a resident.
Q: How do foreigners pay for property they buy in the U.S.?
A: The days of title companies accepting suitcases full of money are over. Money transfers may seem like a good plan, but you need to think about the timing.
….More at Unravel the Mysteries of International Real Estate
More Reading
- Mideast sees pickup in real estate hiring – Saudi Gazette
- 10 Better Names for The Journal’s New Friday Real Estate Section – New York Observer
- UPDATE 1-Zell eyes emerging markets hungry for scarce capital – Reuters
- Global Haus Hunters Hit Berlin – Wall Street Journal
- ‘House Hunters International’ renewed for 91 episodes – that’s a lot of … – Zap2it.com (blog)
- Expo Real follow-up: Let’s talk about sustainability – Property Magazine International
- Dubai, Like Miami, Is Enjoying a Significant Real Estate and Tourism Rebound … – World Property Channel
- Real Estate Without Borders – HispanicBusiness.com
- Norway’s Wealth Fund Targets US Real Estate by End 2013 – Businessweek
- Texas, Mexico real estate groups enter pact – Amarillo.com (blog)
- 4 questions for a pro: Marketing to foreign buyers – Sarasota Herald-Tribune
