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Updated almost 13 years ago,
tax implications for resident becoming non resident
I'm in somewhat of a unique situation - I'm currently looking to make an investment in a residential property as a permanent resident / green card holder. However there is a small chance that at some point I may lose this entitlement (I work for a multinational company and there may be a need to relocate overseas permanently).
It would be my intention to retain ownership of the property even if I do indeed end up leaving and continue to receive rental payments. Having done a little reading online, I understand that there is a 30% withholding tax on gross rental income for a passive investment.
Firstly since I would be using a management company to run my property I don't think I could claim anything other than my investment is passive. Is this correct?
Also, is there potential to avoid the withholding by owning the property through an LLC which in turn is wholly owned by another foreign (likely British) company?