US Freedom Capital offers solutions to minimize or eliminate US taxes for non-US investors
Many wealthy foreigners considering their options for investment, permanent residency or citizenship in the US are concerned about the US tax policy. Many have heard of the US income tax on worldwide income, but in reality, astute advisors can mitigate or eliminate the additional expense. US Freedom Capital, the premier EB-5 Investment Firm, clarifies that there are several options available to the non-US investor to minimize their US tax burden.
The U.S. federal government imposes two major taxes on non-US investors: the Federal Income Tax and the Federal Estate Tax. Both these taxes may apply to the offshore investor as an individual, regardless of whether or not the investor has ever stepped foot on US soil. Depending on the amount of time a non-US investor spends in the US, these taxes are applied either on their US investments or worldwide investments.
Mr. David Gunderson, Principal and Chief Investment Officer, US Freedom Capital, said: “We see a common misconception in the GCC that the US federal income tax is based on assets. However, the US federal tax is based on income, and there are ways in which the taxes can actually be legally minimized or eliminated. For example, the non-US investor is not taxed on his ownership of a US hotel, but rather the income from the hotel. We strongly recommend that non-US investors hire a knowledgeable US tax advisor to understand the entire process and minimize their tax burdens.”
“Because of our prior experience with non-US investors, we are always aware that a US tax liability is a major concern. Several steps are crucial to minimizing or eliminating US tax liability. First, while the US federal tax system is applied evenly across the country, US states and cities also have their own taxes, which vary widely. California and New York are among the most well known locations in the US, but are a poor financial choice for investment and residence due to their excessive tax rates and net out-migration. We have established our company’s headquarters in Dallas, Texas, which has no state income tax, and is growing at a strong and consistent rate.
“For investors with no interest in US permanent residency (Green Card), we offer investments in US real estate with compelling returns and no US tax liability. For those seeking the safety, security and opportunity of life in the US, we offer investments to achieve the requirement of the US EB-5 Investor Visa. For these future US residents, education about the US tax system is very important in order for them to understand investment and taxes in the US in general, especially as it relates to the EB-5 Investor Visa program. To do so, we organize regular seminars in the GCC conducted by our top-level management and have local representative offices where prospective investors can have their questions answered.
