Things Foreign Investors Should Know Before Buying a Florida Property

Like every investment, Florida real estate has some risks, especially for Foreign Investors who must face unique challenges and legal hurdles as nonresidents and no. Whether you are acquiring Florida properties or selling them, you should protect your investment by working with legal experts who know how to protect the interests of clients from all over the world: Jurado & Farshchian.

Here are three key things to know before investing in Florida real estate, and how we can help.

Foreign Investors Should Consider a Business Structure for Their Investments

In order to purchase U.S. real estate as a foreign national, you will need to be assigned a tax processing number by the Internal Revenue Service (IRS). This will either be an Individual Tax Identification Number (ITIN), which is obtained by submitting a W-7 Form and other documents, or an Employer Identification Number (EIN), which is given to registered U.S. businesses. By forming a Florida limited liability company(LLC) or corporation to hold their properties, foreign nationals can reduce their personal liability from risky investments and protect themselves against a hefty estate tax when they sell or gift the property.

Foreign Investors Need Protection From FIRPTA

The Foreign Investment In Real Property Tax Act, or FIRPTA, requires that 15 percent of the gross sales price of a U.S. property be withheld for the Internal Revenue Service if the seller is a foreign national. In addition to incurring reduced proceeds from the sale, foreign sellers must complete extra procedures and documents to comply with FIRPTA requirements. Jurado & Farshchian has represented many foreign nationals involved in real estate transactions, and is qualified to serve as withholding agent to ensure a smooth closing. Our FIRPTA specialists can also determine whether you qualify for certain FIRPTA exemptions, such as if the subject property is selling for $300,000 or less and will be used a residence by the buyer.

Foreign Investors Need Comprehensive Real Estate Services

Buying or selling a property can be difficult enough without being on the other side of the world, or having only a limited timeframe during your stay in the U.S. Foreign Investors need a reliable, proactive, and experienced team of real estate attorneys who can move any transaction smoothly towards closing while minimizing risks along the way. Jurado & Farshchian can handle all important facets of real estate transactions, including preparing and reviewing the sales contract, examining the title, drafting various closing documents, and negotiating any issues or disputes that may arise. You can rest assured that your investment will be as safe as possible.