Tucson Kent's World

Could repeal of FIRPTA help the recovery of this nation's real estate market?  In this morning's Globe St. News, the subject was FIRPTA (Foreign Investment in Real Property Tax Act), the 1980 measure that adds a layer of tax on the sale of any real estate owned by a non-citizen of the U.S.

The article cites a study by two economists that calls for a reform of FIRPTA to encourage more foreign investment in the United States real estate market.

Would it be so bad, since the U.S. real estate market is basically "on sale," to encourage investment groups from abroad to buy our distressed properties?  Do we put an extra tax that is 10% or more on gold, sugar, wheat, etc?

In my opinion, the 1980 provision was reactionary, imposed at a time when we had a nation reeling from financial crisis and seeing large real estate assets being purchased right & left by foreign investors - primarily Japanese interests.  Protecting national interests is one thing...technology, software, certain industrial products, etcetera, but to slap a huge tax on property is anti-market - going against the very grain of what we espouse when expecting other countries' markets to be open to us.

There are those who will cry that foreign investment will drive prices up, or shut locals out of the market - but my feeling is that open markets are better for everyone in the long run...and we have properties that need to move instead of languishing vacant or uncompleted.

Foreign nationals wishing to become permanent residents in the United States can sometimes run into maddening restrictions or quotas that can vary, depending on political swings both in Washington D.C. and in their countries of origin.

Those that have the financial means are using the “Investment Visa” more than ever before as a way to obtain their green card.  Since other options are becoming more unavailable to foreign nationals under U.S. Immigration law and the significant decrease in the value of the dollar vs other currencies, this option is making sense to a growing number of people – especially with conversion rates at a favorable scale.

The basics are this:

Start a business with $1M in capitalization or more – get your resident visa.  Of course there are more details, but that is a place to start.  You’re creating jobs or perhaps becoming an active partner in a business that can benefit from your expertise & capital.

The Immigration & Nationality Law Firm of Klasko, Rulon, Stock & Seltzer, LLP has a very informative website that explains the requirements and the process of obtaining an EB-5 Investment Visa:  Klasko Law

Welcome to America – the great thing about this country is that we are all relatively new descendants of people from somewhere else.  Perhaps even our ancestors were neighbors at one point!

Should you be interested in what the Desert Southwest has to offer, my team will put together a package to show you the opportunities, facilities & support for commercial ventures.

Whether you're looking for warehouse, industrial, high-tech office or development space, research facilities or raw land, we're ready for all of your commercial or residential real estate needs.

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