Published: Jun 10, 2021

Updated: Dec 8, 2023

Taxation for Foreign Real Estate Investors

[1] For a recent article describing the continued popularity of US real estate investments, see Jennifer A. Kingson, Foreign Investors Poised to Flood US Real Estate Markets, WWW.AXIOS.COM, https://www.axios.com/foreign-investors-real-estate-biden-b1a57dc4-b54a-407e-9bdd-020cb8cc370d.html (last visited Jan. 10, 2021). [2] As an example, the United Kingdom treats LLCs as opaque (not transparent) for tax purposes. See HMRC internal manual, International Manual, Foreign entity classification for UK tax purposes: List of Classifications of Foreign Entities for UK tax purposes, WWW.GOV.UK, https://www.gov.uk/hmrc-internal-manuals/international-manual/intm180030 (last visited Jan. 10, 2021). [3]  A credit of $13,000 is available to the estate of a nonresident alien decedent. I.R.C. §2102(b)(1). The effect of this credit is to shelter the first $60,000 of taxable estate from the estate tax. [4] Treas. Reg. §301.7701-3(b)(1)(i)-(ii). [5] Treas. Reg. §301.7701-3(c). [6] I.R.C. §871(b). [7]  I.R.C. §871(a). [8] See Internal Revenue Service, Acceptance Agent Program, WWW.IRS.GOV,  https://www.irs.gov/individuals/international-taxpayers/acceptance-agent-program (last visited Jan. 10, 2021). [9] See Internal Revenue Service, Instructions for W-7, WWW.IRS.GOV, https://www.irs.gov/instructions/iw7 (last visited Jan. 10, 2021). [10] I.R.C. §168(c). [11] I.R.C. §1(h)(1)(B)-(D). [12]  I.R.C. §1(h)(1)(E). [13] See Omnibus Reconciliation Act of 1980, Pub. L. No. 96-499, §2599, 2682 (1980). [14]  I.R.C. §1445(a). [15] Treas. Reg. §1.1445-3. [16] Treas. Reg. §1.6038A-4 [17] Treas. Reg. §301.7701-3(b)-(c). [18] Treas. Reg. §301.7701-3(b)(1)(i). [19] see Internal Revenue Service, Instructions for Form 1065, WWW.IRS.GOV, https://www.irs.gov/instructions/i1065 (last visited Jan. 10, 2021). [20] See Internal Revenue Service, Instructions for Form 1120, WWW.IRS.GOV, https://www.irs.gov/instructions/i1120 (last visited Jan. 10, 2021). [21] I.R.C. §884. [22] I.R.C. §871(h). [23] Id.


We give great legal advice, but this page (and the rest of our site) is for informational use only and is no substitute for actual legal advice. If you’d like to establish an attorney-client relationship, reach out to us and we’ll tell you how we can make it official. Sending us an email or reading this page alone doesn’t mean we represent you.

People ask

Need more help?
Schedule a consultation

Our consultations provide potential clients with valuable legal advice and information because the attorney assigned to your consultation will take time to review the information you provide before your consultation. This preparation allows our attorneys to deliver excellent value for your time.

Search pages, our insights, and more all from one place