FATCA Sector Impact Overview: U.S. and Non-U.S. Real Estate Funds |
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For the real estate industry, the new FATCA rules will impose additional challenges for both U.S. and non-U.S. real estate funds because of the many complicated and diverse investment structures that have become common in recent years. With respect to U.S. real estate funds, non-U.S. investors are less likely to own real estate directly as they are adverse to U.S. tax compliance requirements and seek to reduce the impact of the Foreign Investment in Real Property Tax Act (“FIRPTA”) on the ultimate disposition of the real estate.
Within U.S. and non-U.S. real estate fund organizations, the scope of FATCA can impact investor relations, operations, legal, compliance and tax. It is not just a short term economic issue, but also the management of the perception that a fund or fund sponsor has not properly educated its investors to these new rules
FATCA sector impact overview: U.S and non-U.S. real estate funds
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