When purchasing real estate in Florida a good idea is to form an off shore corporation as sole shareholder of one or several US Corporations. This allows the foreign investor to take advantage of the lower corporate income tax rates that will hold the properties. The foreign Corporation, as a ” Holding Company”, is the sole shareholder allowing the foreign investor to take advantage of the low rates of maximum 21% upon sale of the property with no future US income taxes upon liquidation. It also allows the foreign investor a safe harbor from estate tax that could cause the family of a individual foreign investor to loose their US interest in the case of a sudden death. The low exclusion bracket for foreign individual investors is dangerous and this is a must for foreign investors.
Real estate investors should look good and hard for those deals!