Many people choose the United States as their home because it is an outstanding place to live and do business. Between the quality of life, safety, and market freedom, among other things, the U.S. attracts thousands of immigrant investors every year, making it a common dream for many. Nonetheless, the fiscal aspect is always forgotten, especially for immigrants whose income comes from their home country.
This is why as an immigrant it is crucial to consult with a tax attorney, who will offer valuable tools before you make any mistakes. There are many organizational strategies to protect immigrant assets, depending on the visa type and the goals when moving to the U.S. Planning and preparing in advance prior to becoming a U.S. resident will minimize U.S. tax exposure.
A common mistake is that an individual will become a fiscal resident once he or she receives their “Green card” or when he or she becomes a U.S. Citizen. That is not exactly true. Other than this, the days they spend in the U.S. can also play a role in you becoming a tax person. Many foreign individuals may not be aware that permanency in the U.S. for as little as 120 days a year, could expose them to becoming a fiscal resident, resulting in the taxation of their worldwide income and disclosure of their worldwide assets and bank accounts.
Foreign individuals who become permanent residents of the U.S. must report their foreign bank accounts and assets, including interests in foreign entities, under the Foreign Account Tax Compliance Act (FATCA) and Foreign Bank Account Reporting (FBAR)
This is why is so important that if you’re planning to move to the U.S., you contact an experienced international tax attorney to assist you while considering each special situation.
Here at Legacy Counsel, we help you minimize your tax exposure and preserve wealth while complying with the U.S. reports requirements. If you want to know more about this, schedule a 15-minute free call.
