The United States is one of the nations that allows the sale of land to non-citizens. The sale is treated almost as that of a citizen. The difference will only be on homeowner association, cooperatives and other community association. A Real Estate Lawyer in Carmel NY would be of much assistance when a foreigner plans to acquire land in the states.
Local financers will meet the need for mortgages by a foreign buyer though they might be required to pay higher interest rates compared to locals. The foreigners may also be required to pay more proportions of the principal each month. This arises from perceived higher risk of a foreign buyer compared to local buyers.
The closing for a foreign buyer will be more complex. They will be required to travel to close the transaction. This will be costly for the buyer to make travel arrangements at each step of the process. To alleviate this problem, a buyer can use the “power of an attorney” to a local agent who will handle the closing process on behalf of the buyer.
Taxation will be more complicated when involving foreign buyers. Taxes laws of the two countries will apply which will lead to double taxation. Different countries have different tax concessions with the US. One can therefore consult a tax professional for advice.
A foreign landowner will be subject to capital gain taxes if they decide to sell their land. This will be taxed on any monetary value on the value of the land. To foot this, the US Internal Revenue Service will hold a 10% of the purchase price of the land.
To get a tax shield, foreign land buyers should make at 40 to 50% down payment. The land buyer will be exempted from paying income taxes on rental income from the land for the first 10 to 15 years. This results from tax allowable deductions such as mortgage interest and property taxes.
When a foreigner plans to acquire land in the US, they should take into consideration various factors to get a good deal. When a foreigner plans to acquire land in the US, a Real Estate Lawyer in Carmel NY will guide them through the process. For more information, contact Spain and Spain PC through their website.
