How Foreign Nationals Should Structure U.S. Real Estate Investments

Investing in U.S. real estate as a foreign national comes with opportunity — and complexity. In this episode, this episode breaks down the key legal and tax considerations that should shape how an investment is structured from day one.Join WSHC+B partners Nelson Slosbergas and Fabio Giallanza as they explore the different ownership vehicles available — including sole proprietorships, partnerships, and corporate structures — and compare how each impacts liability, control, and tax treatment. The conversation also covers the strategic use of debt in real estate investments, and how financing decisions can affect overall tax exposure.From there, the episode examines critical income and estate tax considerations unique to foreign investors, including how tax treatment differs between income-producing properties and properties held primarily for appreciation and capital gains. We also unpack the Portfolio Interest Exemption and how it can be used to reduce income tax consequences tied to certain real estate investments.Whether you’re advising international clients or investing across borders yourself, this episode provides a practical framework for structuring U.S. real estate investments efficiently and strategically.Youtube: https://youtu.be/PKjRuOb0GiEHOSTS:Nelson Slosbergas, Esq. - Partner at WSHC+B & Fabio Giallanza, Esq. - Partners at WSHC+BEPISODE BREAKDOWN[00:00:15] - [00:01:44] Introduction: South Florida & the Foreign Investor Landscape. Nelson and Fabio discuss South Florida's surge of international capital and discussing factors for foreign nationals entering the U.S. market.[00:01:44] - [00:06:45] Meet the Hosts: Background & Shifting Trends. Nelson and Fabio shares their roots and bring their perspective. Nelson discusses shift among Brazilian investors driven in part by the dramatic swing in the BRL/USD exchange rate.[00:06:45] - [00:09:41] Investor Type, Country of Origin & Tax Treaties. The attorneys discuss why the investor's country of origin — treaty vs. non-treaty — can dramatically alter withholding rates.[00:09:41] - [00:17:19] The Estate Tax Threat, Planning Alternatives: $60K Exemption vs. $15M+ Foreign non-domiciliaries face a stark reality: only a $60,000 estate tax exemption on U.S. situs assets, compared to up to $15M+ for U.S. domiciliaries. Hosts discuss mitigation strategies as a fallback tool to manage the estate tax exposure is discussed. [00:17:19] - [00:26:00] LLCs & Closing Statements. LLCs are versatile but misunderstood — a single-member LLC is a "tax nothing," while multi-member LLCs default to partnership treatment. The hosts close by urging investors to engage counsel before the deal, not after.WEISS SEROTA HELFMAN COLE + BIERMAN2800 Ponce de Leon Blvd., Suite 1200 Coral Gables, FL 33134Website: https://www.wsh-law.com/SPONSOR:A Crafty Chick Miami! The company that's "Bringing floral dreams to life in the heart of Miami." Visit their Instagram page at: @acraftychickmiamiSubscribe to The Intersection: wsh-law.com/news-updatesFollow Nelson Slosbergas, Esq. on:https://www.linkedin.com/in/nelson-slosbergas-713244aFollow Fabio Giallanza, Esq. onhttps://www.linkedin.com/in/fabiogiallanza