What are tax liabilities for foreign investors?
As a real estate lawyer and accountant, I often get asked in my practice whether there are any tax implications for foreigners buying or selling in the United States, and particularly in Florida. And the answer varies. If you are a buyer, there’s no tax implications. You can buy under your own name, you can buy under an LLC or company name, and there’s no implications at the moment of purchase. However, at the time of selling, there are implications whether you are a foreign national and you’re not a resident of Florida or one of the states, and there’s also implications on the sale, which is FIRPTA. You would have to have a particular withholding of a amount of your sale that gets withheld and sent to the Internal Revenue Service until your tax liability is determined. As both a real estate lawyer and an accountant, I assist the buyers and the sellers with their purchases. I am also equipped to handle their FIRPTA and tax needs, and also communicate with the IRS and do their tax filings. So always best to consult with a real estate lawyer.