1836 Property Management has advised international property investors on Central Texas real estate since 2005. From our Austin office, we can provide every level of support to individuals, non-residents, corporations, institutional investors, and real estate funds. We can support and assist individuals or their agents in identifying, analyzing, servicing, and maintaining their real estate investments. We have proven systems to find qualified tenants, manage the property on your behalf, and handle the day-to-day administration, leasing, maintenance, and reporting.
Whether you are looking for an investment property or property management services, we can make the process stress-free and rewarding. We provide independent information, expert advice, and comprehensive knowledge to help you secure the ideal property and make logical decisions that suit your goals and needs.
Austin, Texas real estate investments are popular among international property investors due to location, appreciation, economic history and forecast, rental rates, transparency, and capital appreciation. If you are an international property investor with questions about real estate investing in Austin, Texas, don’t hesitate to contact our team. Call us today at 512-994-4323.
*Current regulations as of 2022. See the current IRS tax code or speak with your tax advisor for the most up-to-date information.
Unless a tax treaty exists between the U.S. and a specific country, international property investors, including estates, corporations, nonresident aliens, and partnerships pay a flat 30 percent withholding tax on the rents produced by their U.S. real estate investments.
This tax applies unless foreigners’ investments are connected with a U.S. trade or business or the foreign owner has made an election with the Internal Revenue Service to be taxed on a net basis. (Having rental income taxed on a net basis after deductions for costs or operations, maintenance, and carrying charges usually results in a lower overall tax for the foreign owner.) This 30-percent withholding tax is calculated on the gross amount of the rents generated by the property without allowable deductions for interest, depreciation, repairs, management and association fees, insurance, real estate taxes, or other expenses of owning and operating the property.
If you have additional questions about the regulations please use this link for specific information from the IRS.
Because of this potential tax liability, 1836 Property Management requires that foreign investors have or immediately apply for the Individual Taxpayer Identification Number or ITIN W-7 Form. Once this number has been provided to 1836 Property Management we can disperse the funds without any withholding.
W-8ECI Form. Nonresident aliens and other foreign Investors must annually complete the Form W-8ECI, which certifies a foreign person Income Is Effectively Connected With the Conduct of a Trade or Business in the United States. (Real Estate). See below for clarification on two line items.
Part I, #3: This line is for the foreign person to use if they have an LLC that is receiving the rental payments. If they have not formed an LLC then this line is blank.
Part I, #6: This is for the foreign person’s U.S. address if they have one. It is not the address of the rental property. IRS asks this question in order to know if there is a U.S. address where they can send correspondence to the foreign person if necessary. It is ok and very common if this item is blank. Many non-U.S. citizens will not be located in the U.S. or have a U.S. business address of their own.
1836 Property Management will collect the rent from the tenants, pay the management, leasing, maintenance, HOA, and related costs with the rental income, and we will remit the balance to the owner. We are very familiar with International Investment laws.
Once tax time rolls around 1836 will prepare a Form 1042 for delivery to the investor. This form will outline the details necessary for the foreign person to file their taxes properly.