Chapter 06 · FIRPTA, LLC structures, and tax strategies

The Foreign Investor Guide

Half of my clients are international. LatAm, Europe, and the Middle East. The US tax system is not designed with foreign investors in mind, and the wrong structure at closing can cost you six figures over a ten-year hold. This chapter walks through the basics every foreign buyer needs to know — in plain English.

What FIRPTA actually does

FIRPTA withholds 15% of the gross sale price when a foreign seller disposes of US real estate. It's not a tax — it's a prepayment of the tax you might owe. You file a US return to reconcile it. Most foreign sellers overpay because they don't file.

LLC, trust, or personal name?

The right structure depends on your country of residence, your estate planning goals, and your liability appetite. A single-member LLC is simple and offers some liability protection. A foreign grantor trust is better for estate tax. A multi-member LLC can be optimal for shared ownership. Get a cross-border tax attorney before signing anything.

Financing as a foreign national

Foreign nationals can get 60-70% LTV mortgages in Miami through several lenders. Interest rates are 1-2% higher than conventional. DSCR loans are available for investment properties. Cash is still king for pre-construction deposits.

Need a bilingual guide through this?

I speak native English and Spanish. I'll introduce you to the cross-border attorneys, CPAs, and lenders I actually use and trust.

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