If you are a “Foreign National” (i.e. – if you are not a U.S. Citizen and do not have Legal Permanent Resident status in the United States), there are a few things you should know about.
- You DO NOT have to be a U.S. Citizen or have a Green Card (LPR status) in order to own U.S. real estate in your personal name.
- You DO NOT have to be a U.S. Citizen or have a Green Card (LPR status) in order to own a U.S. business entity.You CAN own
- U.S. real estate in the name of a foreign business entity.
Although you don’t necessarily need to be a U.S. Citizen or have a Green Card to own U.S. real estate, you will be required to obtain an Individual Tax Identification Number (ITIN). The IRS issues ITINs to foreign nationals who are required to file federal tax reports and do not qualify for a Social Security Number (SSN).
Tax and Legal
The areas of “tax” and “legal” encompass A LOT of different variables. Some of the intricacies you need to know about will vary depending on what type of business you’re running and what the tax laws are in the state(s) where you’re working. With that said, there are some pretty standard things to be aware of if you’re planning to work in the United States from a foreign country.
Whatever type of real estate you’re planning to own in the United States, you should always plan to pay property taxes to the city or township where your property is located.
Additionally, if you’re going to earn any ongoing rent revenue from the property, you should also plan to file a U.S. tax return to pay state and federal taxes as well. If you have a typical rental property, you should be able to take advantage of the standard tax deductions (like depreciation and interest expense) to minimize your taxable income. This is why it’s important to hire a competent tax professional in the U.S. – as they can help you handle this process the right way.
