The U.S. real estate market continues to be of great interest for investors from Germany, Switzerland and Austria. The reasons are attractive returns, currency diversification, a favorable tax environment, the market size, and the relatively uncomplicated acquisition and ownership of U.S. real estate by foreigners. Additional important decision criteria are the political stability and established legal system in the U.S.
Real estate investments offer multiple planning opportunities which depend primarily on the individual requirements and goals of investors. From the planning stages of a potential investment to its divestiture the income tax as well as gift and estate tax consequences need to be taken into account and included in the structuring.
A focus of our advisory services is on tax planning and structuring as well as tax compliance for our clients’ U.S. real estate investments. In general, the following taxes need to be considered:
- U.S. individual or corporate income tax (federal, state and local taxes)
- Real property tax
- Real estate transfer tax
- U.S. estate and gift tax
- Withholding tax on interests, dividends, and royalties of U.S. corporations