Skip to content
Tax, SDIRAs & Cost Segregation

User Stats

7
Posts
1
Votes

Tax implication on foreign owner with two US residents investing

Posted Nov 16 2023, 11:17

Hi everyone

This is my first post here.

I'm new to investing in real estate in the united states and I'm trying to plan and wrap my heads around things. I live in Spain at least for now and am planning to buy a number of properties with two partners who are US residents. I've spoken with a CPA and he advised that I should have a foreign company owns a US LLC that purchases each unit, and that's how my side of partnership should be.

He said it’s important that I do so to avoid double taxation, withholding tax and estate tax.

Now for withholding tax does that apply to when we decide to sell the property? What if in this case the majority owned are US residents.

Any way to avoid withholding tax in general?

Also wondering if I’m a resident in Spain but keep the profits to re invest would I need to still seek an accountant in Spain?

Any other advice would be much appreciated

thank you all

User Stats

41
Posts
15
Votes
Charles D.
  • New to Real Estate
  • Hong Kong
15
Votes |
41
Posts
Charles D.
  • New to Real Estate
  • Hong Kong
Replied Nov 16 2023, 15:25

@Mohamed Elkashlan

Will there be any other owners in the US LLC (e.g. the 2 US persons) or will all 3 of you hold shares in the foreign entity which in turn owns 100% of the US LLC?

User Stats

7
Posts
1
Votes
Replied Nov 16 2023, 16:54
Quote from @Charles D.:

@Mohamed Elkashlan

Will there be any other owners in the US LLC (e.g. the 2 US persons) or will all 3 of you hold shares in the foreign entity which in turn owns 100% of the US LLC?

my understanding is that the they own their share from the US LLC. If you know a CPA let me know 
BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes