Should Foreigners Use Entities for US Real Estate Purchases?

Due to the current U.S. estate tax system, it is often extremely advantageous for a foreign investor who purchases real estate with considerable value to take title through an entity.

Under the current law, if a foreign individual dies owning U.S. property in an individual name, he or she will generally be subject to U.S. estate tax on the full fair market value of the property (not just the appreciation, if any) at time of death and will only be entitled to a mere $60,000 estate tax exemption. This is contrasted with U.S. citizen and residents who are entitled to a $5.45 million exemption.

Therefore, any foreign investor acquiring several hundred thousands of dollars in the US real estate market, either for personal or commercial use, should seriously consider using one or more entities as vehicles for ownership. This is extremely prudent from the point of view of investment if the buyer intends to keep the property for a significant period of time or the buyer is an older person.

For example, under the current estate tax for a foreigner owning a one million property will be taxed at approximately $400,000, while if the foreigner had taken title via a foreign corporation there will be no estate, or death, tax.

Furthermore, purchases through an entity will provide a higher level of confidentiality, which is an important factor for residents of certain countries when it comes to investing abroad: high network individuals may become targets for kidnapping and/or criminal activities in their own countries.




Panama gets out of FATF gray list

Background

The Financial Action Task Force (FATF), inter-governmental body which purpose is the development and promotion of policies (both at national and international levels) to combat money laundering and terrorist financing, included Panama to its gray list in June 2014, because its financial system did not meet the necessary regulations to prevent and/or control money laundering by foreigners.

After validating that the action plan issued was fulfilled by Panama (which would have helped Panama to strengthen its legal framework and financial system in order to combat money laundering and have a clear financial image), on February 18 2016, on the occasion of its last plenary session in Paris, FATF approved Panama’s removal from the gray list.

Such victory has a positive impact and gives confidence to the investors and tourists around the world as their interests can be now safeguarded in Panama.




Attorney client privilege conversations

Attorney client privilege conversations are monitored by NSA, not only ABA is seeking for more protection.  
 
April 2014

In this age where spying is used as one of the most powerful weapon against global terrorism, are there adequate legal safeguard to protect the confidentiality between U.S. law firms

and their overseas clients when their communication are intercepted?

Australia, Canada, New Zealand, the United Kingdom and the United States, the so-called “Five Eyes Alliance”, are bound by a multilateral agreement, a treaty for join cooperation in signal intelligence. Australians have been long cooperating with the National Security Agency (NSA), focusing on the Asia region, mainly China and Indonesia.

Concerned about the lack of special protection – under American law from N.S.A. eavesdropping – for attorney-client privileged conversations, already in 2012, ABA revised its ethic rules and explicitly required lawyers to make “reasonable effort to protect confidentiality”. 

The New York Times reported that a top-secret document, dated February 2013 – obtained by the former U.S. NSA contractor Edward J. Snowden, also former employee of the Central Intelligence Agency and American computer specialist – shows that an American law firm was monitored while representing the Indonesian government in trade disputes with the United States; such document also reports that the Australian Signals Directorate notified to NSA that it was conducting surveillance of the talks, including communications between Indonesian officials and the American law firm, and offered to share the information. The Australians told to officials at Canberra NSA liaison office that the intelligence gathering might include information covered by attorney-client privilege. On behalf of the Australians, the liaison officials asked the NSA general counsel’s office for guidance about the spying, NSA’s guidance apparently allowed the Australian agency “to continue to cover the talks, providing highly useful intelligence for interested US customers.” 

Newly disclosed documents provide details of the cooperation between the United States and Australia, including efforts to break encryption and collect phone call data in Indonesia. The Australian have obtained nearly 1.8 million encrypted master keys, which are used to protect private communications, from Telkomsel mobile telephone network in Indonesia. According to a 2013 NSA document, they have also developed a way to decrypt almost all of them.

James R. Silkenat, the ABA’s President, in his letter dated February 20, 2014- Preservation of Attorney-Client Privilege for U.S. Law Firms and their Overseas Clients – addressed to two NSA officials said: “… However, irrespective of the accuracy of the recent press reports, we would like to work with NSA on this issue and urge the agency not to actively seek confidential communications between U.S. law firms and their clients. In addition, if NSA obtains such confidential information inadvertently — or such information is obtained by foreign intelligence services or others and then shared with NSA — we would expect NSA to respect the privilege and take all appropriate steps to ensure that any such privileged information is not further disseminated to other agencies or any other third parties”. ABA is substantially requesting a support in order to preserve attorney client privilege protection and avoid the erosion of such fundamental principle. ABA said:the attorney client privilege is a bedrock legal principle of our free society.”

ABA’s President also respectfully requested the two NSA officials to clarify and explain NSA’s current policies and practices design to protect such bedrock legal principle, according to The Times, NSA declined to answer questions related to the top secret document.

However, on March 10, NSA replayed to ABA’s President whit a letter that in sum, states that NSA:

  1. Recognizes the importance of attorney-client privilege communications consistent with our legal traditions and provisions of the Foreign Intelligence Surveillance ACT;
  2. Has privacy procedures approved by the Attorney General and the Foreign Intelligence Surveillance Court to address any incidentally acquired U.S person information and issue of attorney-client privilege when they arise;
  3. Has take a variety of appropriate step to protect potentially privilege information in any circumstance in which it may be encountered;

Works closely whit the Department of Justice to ensure that privileged communications are handled properly in the context of criminal proceedings.

Is this response of NSA going to give lawyers, with foreign clients, a great deal of comfort or just a consolation? Looks like it’s still very hard to see what lawyers can do in order to meet their obligation imposed by ABA – already in 2012 – to “make reasonable efforts” to protect confidential information from unauthorized disclosure to outsiders.

 

Cav. Piero Salussolia, Esq.

Avv. Gemma A. Caterini (admitted only in Italy).

This article was written with effort and dedication in order to provide valuable information on diverse topics. Please feel free to share this information with your colleagues and friend so long as you do not modify or alter its contents and our contact information.




EB-5 the Million Dollar Green Card

July 2014

Foreign which invest in a business that qualifies for the EB-5 Visa program and meet the U.S. Citizen and Immigration Services Immigrant’s (“USCIS”)

requirements on capital investment amount and job creation, are able to obtain, together whit their spouses and children under 21, a permanent residency green card, also commonly referred to as the “Million Dollar Green Card”. 

The EB-5 Pilot Program provides for investments that are affiliated with an economic unit known as Regional Centers (“RC”). New entries continue to flood onto the USCIS list of approved RC. The following four Florida EB-5 RC have been recently approved by USCIS: Sunshine State RC Inc., U.S. Immigration Fund, United States Growth Fund LLC and City of Miami RC. At the end of May, the City of Miami, after a 10-month RC application process, finally has received approval for designation as an EB-5 RC for foreign investments under the (“USCIS”) investment visa program. The City of Miami RC will be one of the few government-owned and managed RC in the United States. The new designation essentially allows the City to assist foreign nationals who want to participate in the EB-5 visa program. 

Moreover, the new EB-5 Director, Nicolas Colucci, oversaw the transition of the processing of I-924 to the new Immigrant Investor Program Office (“IIPO”) in Washington D.C and – during the stakeholder conference call held by USCIS on February 26, 2014 – expressed optimism that the move to the IIPO would lead to shorter processing times. Recent processing time reports shows that the I-924 application processing time was approximately 12 months. USCIS released updated processing time dates as of April 30, 2014, which shows USCIS is processing I-924 applications in approximately 4.4 months, which is less than half of the most recently published previous processing time. 

We believe that those are great news for foreign investors, the City of Miami and all Florida and can confirm that the EB-5 program continues to gain popularity and success among investors.

Cav. Piero Salussolia, Esq.

Avv. Gemma A. Caterini (admitted only in Italy). 

This article was written with effort and dedication in order to provide valuable information on diverse topics. Please feel free to share this information with your colleagues and friend so long as you do not modify or alter its contents and our contact information.




LA PIANIFICAZIONE FISCALE INTERNAZIONALE PER LE IMPRESE ITALIANE

LA PIANIFICAZIONE FISCALE INTERNAZIONALE PER LE IMPRESE ITALIANE: RECENTI MODIFICAZIONI LEGISLATIVE

NON SOLO PASTA – September 1996



Piero Salussolia P.A.

Founded in 1994 by Piero Salussolia, PSPA provides a  dedicated service to an international clientele. After being a partner in the International Tax division of a worldwide law firm, Mr. Salussolia started his own firm to provide clients with a highly personalized service. PSPA staff is singularly qualified to assist the various needs of an International clientele, providing highly qualified counseling. PSPA has represented internationally known Italian individuals and entities as well as the Italian Consulate in Miami. PSPA was founded specifically to assist European and Latin American clients interested in investing in the United States and American clients interested in the Latin American and European market. For this purpose, PSPA has developed an extensive network of correspondent offices throughout the Americas, the Caribbean and Europe to cater to its client’s specific needs… >>>




Piero Salussolia P.A.

Lo Studio Legale Piero Salussolia P.A. (PSPA) è stato fondato nel 1994 da Piero Salussolia, avvocato abilitato negli Stati della Florida e della California. L’avvocato Salussolia ha avviato PSPA dopo essere stato partner di uno studio legale internazionale di fama mondiale, dove ha prestato la propria consulenza prevalentemente nel campo del Diritto Tributario Internazionale. Lo Studio, grazie anche alla sua collocazione geografica, è sempre stato caratterizzato da una spiccata vocazione internazionale e ha sviluppato, a livelli altamente qualificati, competenze in diversi ordinamenti giuridici. PSPA ha rappresentato, tra gli altri, enti e persone fisiche di fama internazionale così come il Consolato italiano di Miami >>>




Piero Salussolia P.A.

La firma Piero Salussolia P.A. (PSPA) fue fundada en 1994 por el Señor Piero Salussolia, quien es abogado desde el año 1984 siendo miembro del colegio de abogados de los Estados de la Florida y de California; después de ser socio en la división de Derecho Tributario de una de las firmas internacionales más prestigiosas, fundó PSPA a fin de ofrecer a sus clientes un servicio altamente personalizado y con la finalidad de proporcionar servicios especializados, atendiendo las necesidades de una clientela internacional. PSPA tiene años de experiencia representando tanto a sociedades como a individuos de reconocimiento internacional, incluyendo al Consulado Italiano en Miami. Un conocimiento profundo de los Países Europeos y de América Latina, junto con la capacidad de proporcionar asistencia legal en diversas jurisdicciones, permite a la firma ofrecer a sus clientes una asistencia jurídica integrada a través de un único interlocutor. Para tal propósito Piero Salussolia P.A. se avala de una amplia red de oficinas corresponsales en toda América, el Caribe y Europa. La misión de la firma es ofrecer una representación de alta calidad. PSPA fue fundada específicamente para procurar asistencia a clientes Europeos y de América Latina >>>




PIERO SALUSSOLIA P.A

Founded in 1994 by Piero Salussolia, PSPA provides a  dedicated service to an international clientele. After being a partner in the International Tax division of a worldwide law firm, Mr. Salussolia started his own firm to provide clients with a highly personalized service. PSPA staff is singularly qualified to assist the various needs of an International clientele, providing highly qualified counseling. PSPA has represented internationally known Italian individuals and entities as well as the Italian Consulate in Miami. PSPA was founded specifically to assist European and Latin American clients interested in investing in the United States and American clients interested in the Latin American and European market. For this purpose, PSPA has developed an extensive network of correspondent offices throughout the Americas, the Caribbean and Europe to cater to its client’s specific needs.

The combination of these areas enables the firm to assist clients in all their needs, starting from the study and the implementation of the most efficient US and/or international corporate structure needed to invest in the United States, each structure bespoken specifically for each individual case, with particular attention to tax and estate planning. The in-depth knowledge of real estate laws also allows the firm to guide the client through the maze of acquisition, residential and/or commercial, and assist in any related administrative and bureaucratic practice, regularizing, where necessary, the client’s position with respect to the current legislation on immigration.

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PIERO SALUSSOLIA

Lo Studio Legale Piero Salussolia P.A. (PSPA)  è stato fondato nel 1994 da Piero Salussolia, avvocato abilitato negli Stati della Florida e della California. L’avvocato Salussolia ha avviato PSPA dopo essere stato partner di uno studio legale internazionale di fama mondiale, dove ha prestato la propria consulenza prevalentemente nel campo del Diritto Tributario Internazionale. Lo Studio, grazie anche alla sua collocazione geografica, è sempre stato caratterizzato da una spiccata vocazione internazionale e ha sviluppato, a livelli altamente qualificati, competenze in diversi ordinamenti giuridici. PSPA ha rappresentato, tra gli altri, enti e persone fisiche di fama internazionale così come il Consolato italiano di Miami.

Un’approfondita conoscenza dei Paesi Europei e Latino Americani, unita alla capacità di fornire assistenza legale in diverse giurisdizioni, consente allo Studio di offrire ai propri clienti un’assistenza legale integrata, attraverso un unico interlocutore e una gestione coordinata ed efficiente delle pratiche. PSPA ha sviluppato  una vasta e consolidata rete di corrispondenti legali con i quali collabora abitualmente, basati prevalentemente, in Europa, in America Latina e nei Paesi Caraibici. Lo Studio e’ stato fondato per offrire la propria assistenza a clienti dei Paesi Latino americani e Europei interessati ad investire negli Stati Uniti. PSPA funge da ponte per la clientela americana che intende investire in Europa o in Latino America. PSPA è composta da uno staff di collaboratori che vantano importanti esperienze all’estero e sono abilitati presso diverse giurisdizioni, ivi comprese quella italiana e colombiana. Lo Studio, tra gli altri, si e’ concentrato nei seguenti settori: diritto tributario statale e federale, pianificazione fiscale e patrimoniale, diritto societario, diritto immobiliare, diritto commerciala e diritto d’immigrazione. La combinazione delle suddette aree consente allo Studio di assistere il cliente a 360 gradi, partendo dall’analisi e dall’implementazione della struttura societaria statunitense e/o internazionale più efficiente per investire negli Stati Uniti, costruita ad hoc sulle specifiche esigenze delle singole fattispecie, facendo particolare attenzione agli aspetti fiscali e successori. L’approfondita conoscenza del diritto immobiliare permette, inoltre, allo Studio di guidare il cliente attraverso il labirinto di un’acquisizione, residenziale e/o commerciale, ed assisterlo in ogni relativa pratica burocratica ed amministrativa, regolarizzando, laddove necessario, la posizione del cliente rispetto alla normativa vigente in materia di immigrazione.