Serge Bauer, P.C.

Our firm can provide services related to the acquisition, ownership and holding title for Foreign Nationals acquiring US real estate assets.

Any foreign national may purchase real estate in the United States; however, special planning should be considered in acquiring a holding title to US real estate assets. Serge Bauer PC assists Foreign Nationals in the formation of Personal Trusts and/or Companies or Corporations in order to hold Real Estate assets in the US.

A Foreign National purchasing US real estate assets should consider the transaction costs associated with acquiring and disposing real estate assets in the US.

The following taxes are imposed on transfer and sale of Real Estate, depending on jurisdiction:

• Real Estate Transfer tax
• Recordation or Stamp tax
• Mansion Tax (1% transfer tax imposed for any asset sold in New York City with a purchase price of $1 million or higher)
• FIRPTA Tax imposed on a foreign seller upon sale of the property
• Ordinary Income Tax on any Real Estate asset held for period of less than one year
• Capital Gains Tax for any Real Estate asset held for period of one year or more
• Supplemental Medicare Tax imposed on high earners
• Other local taxes may be imposed by a city or state upon sale of the Real Estate

Our firm provides services to Foreign Nationals in dealing with the tax issues associated with a Foreign Investment in Real Property Tax (FIRPTA). A FIRPTA is a withholding tax imposed on a foreign seller. The seller will need to file a federal income tax return after the completion of the Real Estate transaction in order to obtain any tax refund of the FIRPTA tax that was withheld at the sale, if the seller is entitle to a tax refund.
We assist Foreign Nationals in structuring Real Estate transactions to maximize Tax Treaty benefits between the US and the Foreign National's home country to lower the tax burden in any disposition of Real Estate assets.