5 Keys to Success for Buying a Home in the U.S. on a Tourist Visa

1.- Type of properties you can buy in the US with Tourist Status: With a tourist visa you can buy properties such as houses, rural properties and condominiums, the latter popularly known as condos. 2.- Payment Conditions: The first thing you should know is that you do not need to have all the money in cash or secure financing in the country of origin. If you decide to opt for a mortgage loan, United States banks can finance  as long as a significant percentage is advanced as an initial payment, known in English as a down payment . The percentage may vary from bank to bank and also from state to state.  In addition, financing banks usually require additional guarantees such as a deposit sufficient to cover all mortgage payments for one year, plus insurance and property expenses. It should also be taken into account that within the United States there is a great difference between states in what is paid as  sales tax on goods and services  and even counties and municipalities. This is important information since it can represent a significant expense that was not expected. 3.- Is it necessary to be present in the US, how long does the process take? Closing of the transaction can be done in as little as 30 days. It is not necessary to be present in the United States during the entire processing, since you can grant a power of attorney,  known in English as power of attorney , to a representative (in the case of Financing, as long as the Bank that is managing the Financing permit), in the case of a Cash Purchase, you may close from any country outside of the United States. 4.- What taxes should I pay for property purchased in the United States? If it is sold and earned from the operation, the corresponding tax must be paid. As for the percentage, it will depend on the type of tax agreement between the buyer’s country and the United States, if there is one signed. It is also possible not to pay if the sale finances the purchase of a new property. On the contrary, if the home is rented, it is necessary to declare taxes annually in the form of income tax in the United States. To do this, if you do not have a Social Security Number issued by the United States authorities, you must obtain a tax number known as  an ITIN . 5.- Is it advisable to create a company that appears as the owner of the property? To avoid paying inheritance tax when the owner of the home dies, which can be very high. But if the owner is an LLC, that is, a  limited company, of which one is a shareholder together with a Foreign Corporation, in English known as a Foreign Corporation , then after the death of the owner the heirs do not have to pay anything to receive that property.    Contact me now and let’s schedule a consultation.