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Foreign Investors Buying Real Estate Miami Dade, Broward and Palm Beaches
American Paradise Properties, Inc. has a long history of advising International investors on their acquisition of real estate in South Florida. From our office in Sunrise, we can provide every level of support to private clients, corporations, as well as real estate funds for their real estate investments.
We will match investment opportunities in residential real estate in all market conditions – through our extensive database, our knowledge of market trends, property values, and our network. American Paradise Properties, Inc. will not only identify and analyze each investment property for you to purchase, but after you close on the property, we can perform the rehab and repairs. We will also find you a qualified tenant, manage the property on your behalf, and handle the day-to-day administration, leasing, maintenance, and reporting.
Whether you are looking for an investment property or relocating to Florida, our specialized buyer services make the process stress-free and rewarding. We provide independent information, expert advice, and comprehensive knowledge to help you make the best decision and secure the ideal property that best suits your expectations and needs.
Florida real estate is popular among international buyers due to its location, home prices, rental rates, transparency, and capital appreciation. If you are a foreign investor with immediate questions about buying investment property in South Florida, please contact us immediately.
Foreigners can borrow in the U.S. to buy a home.
Even if you are not a U.S. resident, you can take out a mortgage (borrow to buy a property) in the country. Lenders in the U.S. will give loans of up to 50% of the sales price to an international client. Some basic requirements might apply, such as having an existing account with deposits of about $100,000 or more in a private bank with operations in the U.S. Banks also often require meeting applicants in person to find out the origin of their assets. Be aware there may be taxes associated.
You may have to disclose your identity.
When buying a property in cash through an offshore company, your identity must be disclosed in certain situations. The Financial Crimes Enforcement Network will require that certain U.S. title insurance firms identify the persons behind shell companies used in all-cash purchases in Florida’s Miami-Dade County (for homes of $1 million or more).This seeks to combat money laundering in the real estate sector by mitigating the abuse of these transactions by persons attempting to hide their assets and identity.
All Condominiums require additional fees.
When purchasing a condominium or co-op apartment, buyers should keep in mind that they are responsible for more than the sales price they agree to pay. Residential buildings carry common charges and luxury ones have monthly fees worth several thousand dollars. For example..In Miami, maintenance monthly fees range from 82 cents to $1.20 per square foot. We here at American Paradise Properties, Inc. have to constantly remind our international clients that things are done differently in the U.S. and to leave behind preconceived ideas of how business is conducted in the U.S.
TAXES for Foriegn Investors
Homeowners in the U.S. are subject to property taxes regardless of their nationality. You need to understand the tax ramifications of buying real estate in the U.S. Foreign buyers should not assume that they are going to avoid them. In financed transactions, annual property taxes are usually included in monthly mortgage payments, as banks want to make sure these get paid. But buyers who purchase in cash must ensure that they pay any monthly or annual taxes.
Unless a tax treaty exists between the U.S. and a specific country, foreign owners, including estates, corporations, nonresident aliens, and partnerships, pay a flat 30 percent withholding tax on the rents produced by their U.S. real estate investments. This tax applies unless foreigners’ investments are connected with a U.S. trade or business or the foreign owner has made an election with the Internal Revenue Service to be taxed on a net basis. (Having rental income taxed on a net basis after deductions for costs or operations, maintenance, and carrying charges usually results in a lower overall tax for the foreign owner.)
This 30-percent withholding tax is calculated on the gross amount of the rents generated by the property without allowable deductions for interest, depreciation, repairs, management and association fees, insurance, real estate taxes, or other expenses of owning and operating the property.
Avoiding the Withholding Tax: Foreign Owners
Because of this potential tax liability, American Paradise Properties Inc request that the foreign investor’s apply for the Individual Tax Payer Identification Number or ITIN W-7 Form. Once this number has been provided to American Paradise Properties Inc, we can disperse the funds without any withholding’s. This will save you approximately 30%.
W-8ECI Form. Nonresident aliens and other foreign Investors must complete the Form W-8ECI, which certifies a foreign persons income is effectively connected with the conduct of a trade or business in the United States. (Real Estate).
American Paradise Properties, Inc. will collect the rent from the tenants, pay the maintenance, HOA and related costs with the rental income, and we will remit the balance to the owner. We are not Lawyers,
so we at American Paradise Propertie, Inc. recommend you seek the advice of a CPA, Accountant and, or Attorney to stay current with latest trends. We will happily refer you to the professionals that can help. Just let us know.