Real estate opportunities are known to be found in various places all over the world. Aside from the fact that it is one of the easiest forms of investment that anyone can choose to enter into, it is also one of the most straight-forward which is why people who are interested in being able to make the most profitable investments are highly encouraged to venture into the world of real estate.
Miami real estate is often seen as being one of the most outstanding markets that an investor can choose to invest in and the fact that it holds such great potential makes it among the top options for foreign investors, especially since foreigners are welcome to own real estate within the United States.
Over the last couple of years, Miami has been receiving interest and activity from a diverse range of foreign investors which include nationals from Brazil, Argentina, Venezuela, Columbia, Russia, Canada, France, and Asia. Many believe that foreign investors are responsible for propelling the Miami real estate market up as the vast majority of real estate purchases have been made by foreign property buyers — many of which choose to make their purchases in cash.
One of the interesting aspects about foreigners being able to invest within Miami is the convenience that comes with the fact that they do not even need to be within the area as they are given the opportunity to seek legal representation with the power of an attorney who will then be given the right to close deals on behalf of the foreign investor. People who would like to receive such legal representation can easily find suitable options which we readily provide to all of our clients.
However, aside from being able to understand the real estate process within Miami, it is also important to note that there are certain things that foreigners will need to keep in mind with regards to their available investment opportunities, particularly when it comes to their basic requirements.
Foreigners who would like to invest in Miami real estate will need to be aware of the following:
Foreign Investment in Real Estate Property Tax Act (FIRPTA)
Enacted in 1980, the tax act was developed in order to impose tax on gains which can and will be made by foreigners upon disposition of real estate property located within the United States. All foreign investors who are non-residents of the United States will need to secure a taxpayer identification number (TIN) in order to be able to file any necessary taxes as the TIN us used in order to identify the taxpayer. If you would like to find out more information about the tax act, you are more than welcome to get in touch with our team of real estate experts.
Capital Gains Tax
Any income which is generated as a result of property sales within the United States is taxable and can be calculated by subtracting the original sales price and any capital costs — without depreciation — from the sales price at which the property is sold on the market which is usually about 20 percent of the total gains. Foreigners will find that there are a number of considerations which can be taken in to account and being able to go over those considerations with our team of real estate experts will definitely be useful for the investment.
It has been known that foreign investors are taxed a 30 percent federal tax rate based on their gross rental income unless net elections are taken in order to enable them to deduct regular expenses prior to the income tax summarization.
Also, foreign investors who choose to finance their property purchase with a 40 to 50 percent down payment will most likely not be required to pay income taxes on rental income for the first ten to fifteen years due to the fact that the government is lenient with regards to any expenses that may be incurred over that estimated timeframe.
Being able to find financial assistance within the United States has now become quite a challenge ever since the mortgage crisis took place a few years ago. Nevertheless, we provide our clients with a list of lending institutions that may provide financing to individuals who are able to meet necessary requirements.
On the other hand, people who do not require financial assistance will find that their biggest challenge could found in the process of moving their finances from their country of origin into the United States, especially since federal agencies will want to find out more information regarding the source of the money among other details.
There will be currency rules to make note of along with withholding requirements that will need to be addressed which is why foreign investors are advised to set aside sufficient time in order to look into all aspects of the financial aspect of the purchase.
Also, foreign investors are subject to 10 percent withholding at closing and will be required to comply with those terms unless the seller of the real estate property has already made prior arrangements for the transaction.
Needless to say, being able to find professional real estate services is one of the most important steps that any foreign investor will want to look into prior to proceeding with their investment and our team of real estate experts is known to provide excellent assistance to all of our clients — both foreign and local.
We look into making sure that the best investment opportunities are presented to all our clients and we see to it that we are able to provide assistance every step of the way. You may contact us if you would like to receive more information regarding your available opportunities or to simply find out more regarding the requirements that are needed in order to make the profitable real estate investments within Miami today.