U.S. Taxation (Individuals) - Taxation of Foreign Real Estate Investments

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Taxation of Foreign Real Estate Investments

For many years, the US has been a preferred investment destination for Israeli citizens and dual nationals (Israeli and American). The vast real estate market and diverse opportunities are attractive to many—whether acquiring residential properties, commercial properties, land for future development, or group investments. Investors (individuals, families, and institutional investors) often hear stories of success and doubling profits, and eagerly dive into these investments.

However, alongside the tempting business opportunity, it’s crucial to consider the investor’s tax liability and exposure to state and federal taxes from the outset. Our professional team has accompanied hundreds of real estate investors in recent years, helping them with many aspects of investing – from choosing the best investment structure to proper dealings with tax authorities in Israel and the US. Our experience proves that a successful investment begins with expert advice.

department services

  • Strategic tax planning before making an investment in the US.
  • Filing federal and state tax returns in the US (based on profit and loss statements or a K1).
  • Filing tax returns in Israel and tax coordination between the countries.
  • Examining the investment structure (individual / company / Trust) to minimize tax liability.
  • FATCA and FBAR reporting where necessary.

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