Foreign Investors in the U.S.

[Jose Ortega]

Good BP,

What tax percentage on the ROI will have to be paid by a foreign investor that will like to invest money in my company to buy multifamily apartments buildings here in the U.S.

Basically what I'm trying to figure out if will make sense for them to invest here in the U.S. through my company. Thank you!

[John Corey]

Originally posted by @Jose Ortega:

@John Corey they will be like interest income. I find the deals, manage the deal. They will be passive investors. But also would like to know how will be if I decided to make them partnership in the deal. For example in the exit strategy once a property is sold how will they be taxed on the capital gain. Thank you for your feedback John!

Check out Basit's reply. He covered a number of important points in his post.

Second, the tax implications in the USA is one issue. How that income will then be taxed in the home country is another. Depreciation in the USA will lower the tax bill. The depreciation might not be a legitimate deduction in the home country. So, best solution for you could be an issue for the foreign investor. 

How do you expect to attract investors to the project? You might need to follow the SEC rules for the USA and then equivalent regulatory agency in the foreign country. What works in one country might not work in the other.

I work across the USA and UK regulatory environment. That picks up the EU indirectly.