Argentico SRL & Argentico SRL, Inc, both founded in 2004 in the Republic of Argentina and the United States of America, and under common ownership, work hard to help Latin Americans make smart property-purchases in the United States of America. As such we have presented two talks on this subject at the Camara Inmobiliaria Argentina, on November 22, 2012 and just recently, on July 25, with invitations for this 2nd event sent throughout Latin America, to other similar bodies.
These invitations from the Camara for the presentation by Argentico SRL were sent from the Camara Inmobiliaria Argentina to their counterparts in Venezuela, Peru, Paraguay, Panama, Uruguay, Mexico, Honduras, El Salvador, Ecuador, Columbia, Chile and Bolivia.
This newsletter is created to get to the gist of some issues concerning this foreign market, and we hope it proves useful.
Please, note contact details at the bottom to receive further information from us.
During the question and answer period of the last event, many were curious about how to research price per square ‘meter’ (feet) in the United States. The following is a website which should prove helpful: www.trulia.com
FIRPTA – Israel Sands
Israel Sands Law, P.A. Miami Beach, FL
There is much discussion as to FIRPTA, which is the law requiring that 10% of the sale price of any real estate be withheld at closing if the seller is not a US resident. This is not a penalty against foreigners, it is not even a tax – it is only a way to make sure that the US government will be able to tax the profit realized on the sale. This is required from foreigners because it is feared that the foreigner, once they collect 100% of the price, may just return to their home country without paying the tax on their profit. Once tax on the profit is paid, a certificate is obtained which allows the release of the 10% withheld.
Israel Sands specializes in Trust & Estate law and tax strategy for foreigners.
ELEMENTS OF RISK MANAGMENT & INVESTMENT DIVERSIFICATION
As we are approaching hurricane season in Southern Florida, and many of our Latin American potential buyers already own property there, we want to assure you we have begun investigating options for premium and assorted plans for storm coverage there, and will continue to do so, as part of our service.
Additionally, we keep abreast of the markets for real estate up and down the East Coast of the United States, from Massachusetts – through New York – Up the Hudson River – to Washington DC, Charlottesville, Virginia and other points in Virginia and Maryland, Atlanta, all the way to South Florida, and have begun to expand research westward, to Chicago and Detroit.
TAXATION – Alejandro Molieri, Associate Director of International Tax Services, Berkowitz Pollack Brant, Miami, FL
A non-US individual should consider income tax and estate taxes when purchasing U.S. real property. A non-US individual can purchase the US real property outright or may purchase it through a corporate structure. Generally speaking, purchasing the US real property outright provides for long term capital gain treatment (20% if held for longer than a year) but may leave the non-US individual exposed to the estate tax (40% on value of the US real property with a 60K exemption). On the other hand, purchasing the US real property via a corporate structure will avoid the estate tax issue but will subject any gain to an effective tax rate of approximately 39%. There are structures which will avoid the estate tax while providing for the lower tax rate of 20% (in some cases zero).
IMMIGRATION – Gina M. Polo, Board Certified Specialist in Immigration and Nationality Law, Weiss, Alden & Polo, P.A., Miami, FL
In the last several years the US has seen an increase in foreign investment in the real estate market. Foreigners looking to invest in the US should be aware and informed about the immigration implications of their investment. The guidance of an immigration attorney is absolutely essential in this process, as there are many pitfalls that can arise, and not every investment, no matter how large, can serve as the basis of a visa or permanent residence.
Investors should consider whether they wish to temporarily visit the US or permanently reside. This can mean the difference between applying for a B-1 visa, commonly referred to as the “business or visitor visa” or visas such as the E-2 visa for treaty investors. There is also the EB-5 program, which includes investment in regional centers, that permit permanent residence. The application process for these visas and residence can be very complicated and not everyone qualifies specifically in the case of E-2 visas where the foreign national must be from a country that has a qualifying treaty with the US.
On August 24th the Camara Inmobiliaria celebrated its 33rd year of service to the real estate community here, we are pleased to inaugurate this newsletter now. We invite you to write to us, or to contact the Camara, to ask for our PowerPoint point presentation, a shortened-version of the November 2012 presentation, in which is included various official and non-official websites, to improve your property-buying work in the United States of America.
This newsletter is not intended to provide legal or accounting advice or opinion. Such advice may only be given when related to specific fact situations, and under consultation of legal and/or accounting professionals. Circular 230 DISCLAIMER – any US federal tax advice which may be mentioned by professionals in this newsletter is not intended to be used, and cannot be used, for the purpose of avoiding federal penalties due.
Traducido por Hernán Merea, RGA Language Services rgalanguageservices.com