Foreign Buyers Interested In Purchasing Real Estate in Boca Raton

 

Affordable Boca Raton real estate has been attracting foreign investors to our area for the past four to five years. One reason is they have more purchasing power because Boca Raton home prices are so affordable and their money is worth so much more here than in their own countries. With the U.S. economy rebounding and the dollar expected to strengthen, more foreign investors are expected to purchase Boca Raton and surrounding area real estate.

 

 

Investors should have a long term strategy and research market prices and neighborhoods first before making any decisions. The easiest way to do find out Boca Raton home sale prices is to work with an experienced and knowledgeable Boca Raton Realtor who understands today’s current market conditions.

Foreign investors who sell their U.S. property are subject to capital gains taxes on any gains they receive from the sale of their property. U.S. FIRPTA tax law requires the closing agent to withhold 10% of the purchase price proceeds for sales over $300,000, even if you do not receive any gain. The exemption to this rule is if your buyer is purchasing your property as their primary residence. However, you are still responsible for any capital gain taxes that may result from the sale. You may apply for a tax refund with the IRS for any overpayments of capital gains taxes.

 

Foreigners pay a flat tax of 30% on their rental income unless the income is considered “effectively connected income”, which is income that is related to a U.S. business or trade. In that case, after you take your deductions, your taxes are paid on the same graduated tax basis as resident aliens and U.S. citizens.