The importance of buying property as a legal entity
01 set 2018
When it comes to overseas investment, Brazilian preference for real estate in the US is nothing new. However, equally important as building equity and enjoying that benefit in foreign lands, is making sure you won’t run into any problems in the future.
Normally, you will not run into any problems until the sale or succession of the property.
This is where the dream can become a nightmare. In the US, taxes can reach almost half the value of the property in case of succession, resulting in significant losses.
This fact is often overlooked by foreign investors because acquiring property in the US is simpler than it seems and there are no immediate negative consequences. Yet, it is important to be aware of the differences in the acquisition of property in the US compared to in Brazil. Successive planning, which may involve the acquisition of the property in the name of a legal entity, is the most appropriate solution. For many Brazilians, it may appear to be a scam or against the law, but in truth it’s completely legal as long as it’s done right.
If you are thinking of acquiring a property in the US and you are not yet familiar with US laws, you need a professional in the area who can advise you on the best way to structure your plan, how to optimize your inheritance tax payment, and avoid loss of capital.
The Dominium team has ample experience in the matter and can help you achieve your dream of owning a home in the USA, without all the headaches.