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International Tax Planning

If you are a non-US citizen/resident looking to have a presence in the United States, you need experienced US counsel to ensure that you structure your personal and/or business wealth in the most protected, tax-efficient manner. MVM Law is a leader in the development of wealth structuring and transfer planning solutions for affluent individuals and families worldwide. For over 30 years, MVM Law has produced and implemented innovative plan designs to solve for a variety of complex planning needs of non-US citizens and residents who:

Purchase and/or own various forms of business interests in the US (including operating businesses and passive interests in Corporations, LLCs, and partnerships)

Purchase and/or own residential or commercial real estate in the US

Educate their children in the US

Sell or gift property to US citizens and non-US citizen residents

By combining innovative strategies in the areas of asset protection, income and estate tax planning, business and succession planning, and real estate law, MVM Law approaches planning for non-US citizens/residents similar to how we approach planning for our US-citizen clients.

This approach uniquely qualifies us to create and implement solutions designed to meet all of your global personal, estate, and business planning needs. And this integrated approach is what distinguishes us from our colleagues and allows us to produce favorable tax results for clients located throughout the world.

When are non-resident aliens subject to U.S. gift tax?

Non-resident aliens (NRAs) incur a 40% gift tax on transfers of property located in the U.S. valued above (in 2016) $148,000 for transfers to spouses and $14,000 for transfers to non-spouses. Unlike U.S. residents, NRAs do not have a $5 million (indexed for inflation) lifetime exemption from the U.S. gift or estate tax. Thus, for example, if an NRA transfers $50,000 of cash in the U.S. to a child, $14,400 ($36,000 x 40%) of gift tax will be due as a result of the transfer.

Are there strategies to reduce or eliminate U.S. gift tax for non-resident aliens?

Yes, we can frequently reduce or eliminate the gift tax resulting from the transfer of U.S. located property owned by a non-resident alien (note that not all property in the U.S. is subject to gift tax). It is critical that you discuss your circumstances with us before you make such a transfer.

When are non-resident aliens subject to U.S. estate tax?

Similar to U.S. gift tax, non-resident aliens (NRAs) are subject to a 40% U.S. estate tax on property they own at the time of death that is located within the United States. Generally, NRAs have a $60,000 exemption from estate tax; in other words, the first $60,000 of the NRA’s U.S. property is not subject to estate tax, and the 40% rate applies to the excess.

Are there strategies to reduce or eliminate U.S. estate tax for non-resident aliens?

Yes, we can frequently reduce or eliminate the estate tax resulting from a non-resident alien’s ownership of U.S. located property. It is critical, however, that you discuss your circumstances with us as soon as possible to reduce the risk of a 40% tax above $60,000.

When are non-resident aliens subject to U.S. income tax?

Generally, non-resident aliens (NRAs) are subject to U.S. income tax on the income generated from property located within the United States. If there is a tax treaty between the U.S. and the NRA’s home country, this tax treaty will attempt to prevent double taxation (i.e., taxation in both the U.S. and in the NRA’s home country) but is not always successful in avoiding double taxation. Further, as a general rule U.S.-sourced income is subject to a 30% withholding before distribution to an NRA, unless the income is salary and other earnings from working in a U.S. business.

Are there strategies to reduce or eliminate U.S. income tax for non-resident aliens?

Yes, we can frequently reduce and sometimes eliminate the income tax resulting from income earned on U.S. property owned by a non-resident alien. The sooner you discuss your circumstances with us, the sooner we can potentially reduce this tax.

For more information about International Tax Planning

If you would like to be contacted to discuss your specific situation within the next business day

To receive your free copy of the report, “Helping Non-US Citizens Navigate Their Investments in the United States”, fill out the form below:



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