Meiya Real Estate: What taxes do foreigners have to pay when buying American real estate?

With the hot trend of real estate investment, investors pay more and more attention to American real estate. But as a foreign investor, what taxes do you have to pay to buy American real estate?

The taxes and fees that foreigners need to pay when buying American real estate can be divided into five categories: 1, income tax; 2. Capital gains tax; 3. Real estate tax; 4. Resale of real estate, article 103 1 of the tax law; 5. Withholding income tax on foreign real estate investment. The following is a detailed analysis of various taxes and fees.

(1) income tax

The tax year in the United States begins on June+10/October 1 in 65438 and ends on February 3 1 in that year. The deadline for tax returns can be divided into residents and non-residents. Resident: midnight on April 15 (the "liberation day" in Washington, D.C. is Friday on April 15), so the deadline for filing tax returns has been postponed to April 18. In addition, since April 18 falls on Patriot Day in New England, the deadline for filing tax returns is April 19. ); Non-residents: the deadline is June 15.

(2) Capital gains tax

The capital appreciation range of long-term investment in American real estate (investment of more than 65,438+0 years) is 37,656,5438+0 to 465,438+05,050 USD, and the tax rate is 65,438+05%; The value-added part is higher than $465,438+05,050, and the tax rate is 20%. The capital gains tax on short-term investment (less than one year) is higher, which is the same as the general income tax rate, while the personal value-added tax is exempted at $4,050.

If investors get extra income from investment, such as stocks, real estate, bonds, funds, works of art and anything of value, they must declare it every year. But reporting and paying taxes are two different things, which means that you may not have to pay taxes.

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(3) Real estate tax

According to American tax law, no matter what purpose the house is used for, the property owner should pay the property tax. More specifically, the owner of the house rents or uses the house for his own use, and as long as he owns the property, he has to pay the property tax. But the real estate tax is paid at the end of each year. You can also get a discount if you pay taxes in advance. The tax paid is about 1%- 1.8% of the valuation. According to the valuation of American real estate, set a value ratio, such as 5%, 65%, 438+05%, 30%, 40% and 50% of the market value of real estate, and collect the corresponding tax value.

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(4) Resale of real estate, article 103 1 of the tax law.

American real estate purchased by foreigners for real estate transactions, whether for business or investment, needs to determine one or more disposal houses within 45 days of selling the original real estate. Then the replacement property needs to be equal to or higher than the original property value, and the apartment can be changed into a warehouse, the open space can be changed into a single house, and the office building can be changed into an apartment. If it is within 180 days after the original property is sold, the replacement property needs to be purchased, otherwise the capital gains tax needs to be paid. Reverse exchange is also possible, that is, the seller buys the replacement property first and then sells the original property.

(5) Foreign real estate investment withholding tax

In order to reduce the tax evasion between foreigners who are not permanent residents and foreign enterprises, when foreign sellers resell (sell) American real estate, the sellers need to increase the house payment from 65,438+00% to 65,438+05% in advance as a tax reserve (effective from February 2065,438+06,65,438+06), and the transferring company is trading. If the seller has the necessary tax refund, the tax bureau will refund the remaining tax about 60-90 days after filing the tax every year.