Ten Things Foreign Investors Need to Know about Buying Real Estate in US

  1. ITIN You will need to apply an individual taxpayer identification number. An ITIN can help you to fileUS tax return and get your payments.  A request for an ITIN is made on Form W-7.
  2. W-8 ECI: If property is used for rental purpose, the IRS requires foreign owner to withhold and pay income tax at a rate 30% of the gross rents collected. However, foreign owner can elect to treat the rental income as “effective connected income” withUS trade or business.

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