For foreign investors interested in renting their property through North County Property Group, please consult first with a U.S. tax professional for tax advice regarding the Foreign Investment in Real Property Tax Act (FIRPTA).
Please note that all foreign investors who are owners of rental property and desire for us to be their property management company are responsible for paying U.S. taxes to the Internal Revenue Service on rental income earned.
For North County Property Group to consider managing your foreign owner property, you must possess a U.S. Social Security number OR obtain an Individual Taxpayer Identification Number (ITIN)
To apply for an ITIN, file Form W-7 with the IRS. This process usually takes 4-6 weeks to get an ITIN number.
If you would like assistance in the submission and processing of your application, the IRS has authorized agents who can help. Contact an agent who resides within your country of residence if you wish to obtain such assistance.
You will be required to provide us with a copy of the letter you receive from the IRS which documents your Individual Taxpayer Identification Number (ITIN).
North County Property Group will withhold 30% of your gross rental income and submit such withholding to the IRS. State of California Franchise Tax Board (FTB) withholding is also required.
You may apply for exemption from the 30% IRS withholding by submitting to North County Property Group an IRS Form W8ECI.
North County Property Group will provide you with an annual of income, expenses, and cash flow as an accounting summary of the rental property activity. You will also receive an IRS Form 1042S to provide to your tax professional for filing your U.S. tax return.
North County Property Group are not professional tax advisors. The information contained on this page is for information purposes only in guiding foreign investors toward obtaining property tax assistance pertaining to the Foreign Investment in Real Property Tax Act (FIRPTA).