Any views on most tax efficient structure for an offshore investor to purchase commercial property?

I represent an offshore investor (Europe based) interested in a commercial (office building) portfolio in Texas. We have been suggested a corporate structure to hold the investment property.
Any views on the best holding structure for such a portfolio would be much appreciated.
In Buying Property - Asked by Abhi H. - Feb 14, 2017
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Answer(s)

D. Lee E.
Broker/Agent
New Braunfels, TX

Check with a local law firm in the area in question.

Feb 16, 2017
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Victor O.
Broker/Agent
Edmonton, AB

Hi I have worked with foreign investors, and continue to work with foreign investors, all In present deals are in Canada. Some of our Provinces in Canada do have a foreign investment, act/policy. It would be in your best interest as well as your clients interest to get local legal help, That said I have run across legal firms which have NO clue on dealing with foreign investors, as well as the requirements of local government.
but there are ways to help and to solve issues, Good luck

Feb 18, 2017
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Craig T.
Broker/Agent
Anaheim Hills, CA

Consult a Tax Attorney,a CPA and a Broker with experience.They will be your team to determine the best structure for this Investor. The two basic ways to organize a corporation which operates in multiple jurisdictions is
to operate as a single corporation having one jurisdiction to which it is a domestic corporation and register as a foreign corporation in all other states, or
create one primary corporation (or parent corporation that owns the stock of all the other corporations, and each of the other corporations is registered as a domestic corporation in each state it operates. The parent corporation (or parent company) is usually referred to as a holding company, while the separate corporations are referred to as subsidiaries. If the parent corporation owns all of their stock, they would be referred to as wholly owned subsidiaries of the parent company.
Operating a corporation as a holding company and separate corporations in each state, or operating as a single corporation with registrations as foreign corporations in all the other states than its home state, is a matter of choice for the corporation's directors and officers depending on how it operates, damage liability and tax consequences. A corporation may find it more advantageous operating as separate companies in each state or jurisdiction, or it may find that operating as a single organization may make more sense.

Feb 18, 2017
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Alex A. G.
Broker/Agent
Miami Beach, FL

Most common form I have used is to have a newly formed LLC take title to the property. The LLC should be owned by a newly formed domestic company (can be another llc, or corp.) incorporated in the state where the property is located. This creates two levels between the property owner and the foreign investor. A tax advisor should always be consulted before the acquisition.

Mar 2, 2017
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