How to understand and invest in the real estate market in the US

The real estate market in general!

How we can help you inthe Real Estate Market

Our Service Process

Why Use an Offshore Holding Company?

Protect your wealth and plan tax-efficiently. Non-U.S. investors often benefit from holding U.S. real estate through foreign corporations or offshore trusts designed to:

Mitigate U.S. estate tax exposure (which can be up to 40% on U.S.-situs assets).

Limit liability and shield personal assets.

Enhance privacy and facilitate succession planning.

Example: A foreign investor holding property directly may be subject to U.S. estate tax, while owning it through a well-structured foreign entity may legally avoid it.

🔁 1031 Exchange: Defer Capital Gains Tax

You may be eligible to defer U.S. capital gains tax by reinvesting proceeds from one investment property into another through a like-kind exchange under IRC §1031:

- Applicable to U.S. real property held for investment.
- Must comply with timelines (45-day identification, 180-day closing).
- Requires use of a Qualified Intermediary.

📌 Important: Holding structures must be properly set up to qualify for 1031 benefits.

🏡 Short-Term Rentals: A Tax-Efficient Strategy

Short-term rentals (like Airbnb) can offer active business treatment rather than passive rental income, resulting in:

- Eligibility for deductions (depreciation, interest, repairs).
- Potential exemption from the default 30% withholding under FDAP.
- Effective connection with a U.S. trade or business (ECI), allowing net-income taxation at graduated rates with deductions.

💡 Smart structuring may reduce or eliminate withholding taxes and increase tax efficiency.

🚨 FIRPTA: What It Is—and How It Can Be Avoided

Under the Foreign Investment in Real Property Tax Act (FIRPTA):

- Buyers must withhold 15% of the gross sale price when purchasing U.S. real estate from a foreign person.
- Applies even if the seller has little or no gain.

✅ Legal Avoidance Strategy

With the right structuring—such as owning property through a U.S. corporation or certain types of foreign entities—you may avoid FIRPTA withholding entirely, or significantly reduce it through a withholding certificate.

📎 Reference: https://www.irs.gov/individuals/international-taxpayers/firpta-withholding

📞 Plan Before You Buy or Sell

Set yourself up for long-term success with strategic legal and tax planning. Contact us to:

- Select the ideal entity type for your goals
- Structure around FIRPTA, estate tax, and withholding
- Optimize short-term rental income treatment
- Execute compliant 1031 exchanges

We have several specialists to assist you in the best possible way

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Here’s What Our Customers Are Saying!

I would like to give very positive feedback about Jessica, from the Compliance team, who has provided us with exceptional services. She is always very attentive and proactive, ready to answer questions with clear and objective responses. The delivery of services is marked by efficiency and agility, with excellent coordination of information in an organized manner. Communication with Jessica is always fast and effective. She connects the right people, facilitates workflow, and avoids delays, especially at critical times, such as US income tax or integration with new teams. This efficiency conveys confidence and makes collaboration smooth and secure. The feeling that remains is that of a solid and reliable partnership. I know I can count on Jessica whenever necessary, which contributes to a positive and productive professional relationship. I congratulate the Drummond team for having such dedicated and competent professionals as Jessica.

Ingrid Keppe

Green Reyona

Our relationship at Drummond began when I requested to switch from my company's then representative agent to Drummond. This situation was extremely tense and delicate for me, and I wanted to resolve it amicably between the parties as quickly as possible. You handled the matter with great competence, calm firmness, patience, availability, and attention to me, who was very distressed. You were instrumental in ensuring that this transition was successful and without conflict. Everything worked out! Now, in our day-to-day interactions, I continue to find you to be an excellent liaison with Drummond. You always respond quickly, take an interest in understanding my needs, are very competent, calm, and respond clearly and promptly to the issues raised. I feel very well taken care of!

Vania Naylor

Pink Horse LTD

Contact Us
and Let´s Do It Together

Orlando

+1 (781) 770-0005

7680 Universal Blvd • Suite 315 • Orlando • FL 32819

Miami

+1 (781) 770-0005

2 S. Biscayne Boulevard, Suite 2450 – Miami, FL 33131

Boston

+1 (781) 770-0005

99 Sumner St • Suite 216 • MA • 02128

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+55 (11) 3567-4161

Rua Barão do Triunfo, 612 • Conj. 1309SP • 04602-002

Belo Horizonte

+55 (31) 2510-4440

Av. do Contorno 10º andar 7069 • MG • 30110-043