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INTERNATIONAL REAL ESTATE HOW WE WORK: HamptonsProperties.net offers buyers and sellers something different. Because of our transcontinental affiliations and our languages skills, we are able to help buyers from across the United States find properties overseas. In turn, through the same connections, we market properties from all over the United States, to buyers from abroad. At HamptonsProperties, we are fluent in English, French, and German, and are familiar with European cultures and business practices in the United States and across the continents. Most importantly, we have the ability to successfully transact business between the United States and abroad and to participate in fee sharing arrangements with overseas brokers, because we are Transnational Referral Certified brokers (TRC). INTERNATIONAL ASSOCIATIONS: We are members of LIBOR (Long Island Board of Realtors) and NYSAR (New York State Association of Realtors), and NAR (National Association of Realtors). At the same time, NAR is a member of ICREA, a consortium of twenty-five of the world's leading real estate associations, all committed to the right to own and transfer real property. In addition, we are members of the Certified International Property Specialist (CIPS) and FIABCI (International Federation of Real Estate), a network that extends to over sixty-five countries, and the Institute for Luxury Home Marketing - a worldwide organization of seven thousand agents trained specifically in Luxury Home Marketing. These associations set standards for international real estate practice and transactions for the benefit of industry professionals, and the public they serve. The value of these associations for both global and domestic practitioners includes a set of international standards for professional ethics, best practices, and data transfer, as well as networking and referrals tools. INVESTING IN THE HAMPTONS: Due to the current value of the dollar, investing in the Hamptons (and the United States) is extremely affordable. In addition, rental rates are favorable. FACTS TO REMEMBER ABOUT INVESTING FROM ABROAD: There are very few restrictions on ownership of U.S. property by foreign persons, but there are certain reporting regulations. Foreign real estate investors should consult Tax Accountants and Lawyers in both their country of residence and the United States. Agents in the United States must be licensed by a state before acting as a real estate broker or sale associate. Complaints about a licensee can be brought before a state regulatory body. Agents must conduct real estate client representation through a real estate brokerage firm. Under FIRPTA (Foreign Investment in Real Property Tax Act), a buyer must withhold ten percent (10%) of the purchase price if the seller is not a United States citizen. No withholding is required if the seller is a U.S. citizen; a green cardholder (lawful resident); or resident alien (meets either the physical presence test - present in the United States for at least 183 days in the current calendar year, or the substantial presence test - present in the United States for a weighted average of 183 days over three years). At the time of purchase, a foreign buyer must acquire a U.S. taxpayer identification number (TIN). Waiting until the time of sale to obtain the TIN may cause difficulty in recovering money withheld, as pursuant to FIRPTA. Non-resident aliens and foreign corporations are taxed on income resulting from the sale of U.S. real property. A buyer aware of that at the time of the purchase may plan accordingly, and may even consider a 1031 exchange. Generally, non-resident aliens are taxed at a flat 30% of the federal tax rate on gross rental income, unless they make certain income elections on their returns. This election, which allows for deductions for regular expenses before income tax is calculated, is commonly known as the "net election". It is always advisable to seek out a competent tax advisor. Property tax payments are required as an additional cost of the property. The way foreign buyer clients take title (individual, foreign corporation, U.S. corporation, or trust) is a decision that can affect their ability to transfer the property and the financial tax implications both during the property's ownership, and upon sale. Since the method of holding title can affect the tax consequences during the life and after death, it is recommended to seek out a competent lawyer and/or an accountant with an international practice.
