With the rapid growth of Chinese economy, overseas property and investment has become a new investment concept for many citizens of China. Domestic policies for house-purchase restrictions and controls, in addition to the global real estate boon, have stimulated the formation of the buyer’s in China for overseas property. Further, many countries are seeking to entice Chinese investments in real estate by offering tax and immigration benefits (in addition to soaring returns on investment).
However, before investing in real estate, it is important to know how to legally minimize or avoid taxes in order to maximize profits/gains. Furthermore, owing real estate abroad comes with other considerations such as, maintenance of the house, and visiting the investment on a regular basis, depending on the jurisdiction.
Our law firm has the ability to provide you, your family, and friends in China with consultation on how to invest in overseas real estate. Our founding partner, Steve Moskowitz, attorney and professor of law, encourages foreign real estate investors to take advantage the safe, convenient, and reliable U.S. real estate market and the U.S. tax laws that encourage foreign investment. For instance, the savvy investor will consult with an experienced tax attorney like Steve Moskowitz to determine the best and legal way to minimize taxes and provide you with increase in profits and ease of investment.
For example, instead of a Hong Kong resident investing directly into real estate located in the United States (which a family member may live in or be it a larger commercial investment), we may advise setting up a corporation in a tax friendly jurisdiction (such as Hungry or Poland) to eliminate the U.S. tax. Best of all, everything is legal and in compliance with the U.S.-China Treaty, Foreign Account Transaction Compliance Act “FATCA”, and other U.S. Laws.
Another potential way to benefit is by having the overseas investor lend money to a U.S. LLC that is created to acquire real estate, to legally avoid paying tax on any distribution to the foreign investor, including interest and appreciation on the real estate, whether it is sold or not.
It is important to note however that not all countries provide these benefits and tax law is complicated and always changing. As such, it is extremely important that you or your family members consult with an experienced tax attorney.
Steve Moskowitz and his tax law firm have been practicing tax law for over thirty years. We save financial lives by relentlessly pursuing all avenues to successfully resolve client tax matters. From controversy work and tax returns to tax opinions and criminal tax defense, we help individuals and small businesses understand their entire tax picture and act accordingly. We defend your personal liberty and dignity through skill, experience and an aggressive approach. We do whatever it takes, within the bounds of the law, to deliver top quality, non-judgmental representation to help you save your life’s work, resolve tax matters pending, and to thrive. Moskowitz has been practicing tax law in San Francisco for over 30 years. Many of the tax professionals and C.P.A.s that work for Moskowitz LLP have worked together for over 15 years and are fluent in Mandarin, Cantonese, and Korean.
Please call or email us if you would like more information regarding foreign investments in real estate tax planning or to discuss your tax situation. You will receive a timely response directly from our founding partner, Stephen M. Moskowitz.
Moskowitz, LLP, A Tax Law Firm
180 Montgomery Street, Ste. 1950
San Francisco, CA 94104
Tel: (415) 394-7200