US TAXATION OF REAL ESTATE FOR FOREIGN INVESTORS – DECEMBER 2006

Introduction

Foreign investors are attracted to U.S. real estate because it has many advantages including income potential, appreciation, and future gains upon sale. However the U.S. tax laws and regulations impose very complex rules and requirements on foreign investors and their agents, including withholding, reporting, and special taxes upon the sale of U.S. real estate. We have prepared this material to explain which transactions are subject to taxation, and the responsibility of the foreign investor and his agents