From a regulatory environment in flux to some unexpected tips on bridging cultural gaps when cash flies around between countries, the 300-plus people in attendance learned a lot at Bisnow’s first-ever NY Foreign Investment event, held Tuesday in Manhattan.
1. It’s Not Your Dad’s FIRPTA Anymore
Congress isn’t anywhere near repealing the Foreign Investment & Real Property Tax Act, passed in 1980. But foreign investors can now own up to 10% of any publicly traded REIT (up from 5% previously). The law also now lets foreign pension plans invest in any structure of US real estate and pay no capital gains tax upon exiting. The recently passed reforms were sponsored by Rep. Joseph Crowley (speaking), a panelist at our event. He reps NY’s 14th District, which includes parts of Queens and the Bronx.
2. Election May Mean We’re Stuck With The Same Old EB-5
Alluding to this fall’s one-year extension of the existing EB-5 law, Real Estate Roundtable CEO Jeff DeBoer says Congress can act like teenaged boys; doing nothing until the last minute and then only doing the minimum.
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