We as Manhattan Real Estate professionals, we work with many
international foreigners wanting to invest in Manhattan Real Estate. In addition to educate foreign buyers about the maze of Manhattan Real Estate market, our specialty isfacilitatethe
purchase to ensure the transaction is smooth and successful. Below are
some frequent asked questions by our foreign buyers, the answers are
formulated by our team of professionals (tax accountants and attorneys
who also specialized in foreigners purchase in Manhattan New York.) These answers are general and not case specific.Â To best address your specific needs,contact us directly by email or call (917)837-8869.
Can Foreign Nationals buy a NYC condo without having Social Security Number or US residency?
Yes, they can legally, but have to meet the NYC Condo boardâ€™s
requirements for approval. At the sale of the real property,
Non-resident aliens are subject to federal withholding tax at 10% ofÂ the
gross sales price, and to a 8.97% New York State estimate income tax
on the net sales proceeds (gains).
If not, what kind of documents should a foreign nationals prepare to be able to buy?
In order for a Foreigner to buy NYC condo, they need to haveÂ a valid
passport and/or other official photo ID for identification purpose.
What are the Options for Foreign Nationals (non-residents aliens) to hold title for NYC condos:
(these answers are information only, we are Real Estate professionals,
therefore, before you make a specific decision, we recommend you to
discuss with our team ofÂ attorneys and tax accountants for your specific
Individual: Individual may be exposed to unlimited
personal liability, and to estate issues, for instance, inheritance,Â
will probate and estate administration, when the individual owner dies.
LLC: Limited Liability Corporation provides
insulation for members from personal liability, but will incur
maintenance costs, such asÂ filing fees for its formation, annual
franchise taxÂ and is subject to higher formation costs (higher thanÂ a
Trust: Trust is an unincorporated entity, cannot
hold title by itself; title must be reqistered in theÂ individual
trusteeâ€™s name.;Â the individual trustee may be exposed to unlimited
S Corporation: S Corporation is a legal
entity,Â insulates shareholders for from personal liability, does not
payÂ income tax itself, the income tax liability is attributed to the
shareholders.Â It is subject to filing fees for incorporation, annual
franchise tax, etc.
C Corporation:Â C Corporation is a full fledged
legal entity.Â It provides shareholders insulation from personal
liabilities.Â It is a taxable entity forÂ corporate income tax.Â Any
distribution ofÂ after tax profit to shareholders in the form of
dividends will be subject toÂ income tax for the shareholder.Â It incurs
maintenance costs, such as filing fees for incorporation,Â annual
franchise tax, etc.Â Its filing fees are less than that for the LLC.
Limited Partnership: the limited partnerâ€™s
liability is limited to his/her capital interest in the limited
partnership, whereas the general partner will be subject to unlimited
personal liability.Â Limited partnership, like general partnership does
not pay income tax.Â The income tax liabilities are attributed to the
individual partners. A limited partnership need to file the partnership
agreement with the government.
*These answers are general and not case specific. To best address to your specific case, contact us directly at (917)837-8869 or Email at EileenHsuNYC(@)gmail.comand we can set up a confidential consultation.
If both husband and wife have green cards, will they pay tax similarly as above options?
Resident individuals owning real property pay the same taxes, but not
subject to the gross 10% federal withholding tax and the 8.97% New York
State estimate income tax on the gains at the sale of the real
Can the Foreigners avoid United States taxes?
The taxesÂ cannot be avoided.Â The non-resident investor must pay the
above taxes at the time of closing of the sale, without the tax
payments, the deed will not be accepted for recording.Â After having
paid the taxes, the non-resident investor may, but need not, keep the
proceeds in the U.S. without additional tax (except income tax on the
interest paymentÂ on such proceeds).
If you are a foreign national and would like to better understand how to purchase and invest in Manhattan Real Estate, it is a good idea to discuss the situation in precise manner. CONTACT US TODAY (http://manhattannycondosforsale.com/contact/)