international investors

[tweetypilot]

Hi everybody
I joined the Rein a few month ago have my personal house have made some offers already for investment that went down on the financial so I m happy I ve learn so much in just a few monthes but still looking for money partners. I have found some outside the country but I am a little lost about how to set up the deal moneywise. Talking to different people I ve heard about offshore accounts that could save taxes for both partnerseverybody. My questions is first....is it legal??? I just don t want to wear an orange suit for the rest of my life....

Has anybody done some deals with people outside the country? I have an appointment with my lawyer about it but still curious to have different options, experiences and point of view...cause I m ready to leave my dreams in the oilers country...!
Fly safe...
tweetypilot

 

[Kap Hiroti]

Hi tweetypilot,

Welcome to REIN! I joined REIN in June, although I have been attracting international JV money for real estate investing in Canada for several years now.

**Please do not take my post as legal or accounting advice. Be sure to seek your own independent legal and accounting counsel.**

It is wise to speak to a lawyer and an accountant familiar with different offshore legal entities and taxation. Dealing with offshore accounts may sound great from a tax minimization angle... however this is a very grey area. If the sole purpose of setting up offshore accounts or companies is to avoid Canadian taxes, it would be considered tax evasion, which is illegal. If you have a legitimate reason for setting up offshore accounts or companies, it could be viewed that tax minimization is a secondary benefit.

I regularly bring in JV money from New Zealand, Australia and Japan and manage it all through Canadian accounts.
- I have all my JV partners talk to a Canadian accountant and lawyer so they understand the implications of investing in Canadian real estate (especially concerning taxation).
- After JV partner approval, JV funds are wired to my lawyer`s trust account and ready for the deal.
- After closing I run all income and expenses through Canadian bank accounts and report regularly to my JV partners.

I keep it simple, disclose everything and sleep like a baby.

Regards,

Kap Hiroti
BC REIN Member
President - DealSpeak Inc.

Phone: (604) 323-0623
Fax: (604) 357-1547
Email: [email protected]
Website: www.dealspeak.net

 

[tweetypilot]

Thank you Kap for the fast answer. It really help me...no need to go off shore!!!
I will put all my efforts in setting the deal here in Edmonton with my lawyer and acountant which will be easier...to start I d rather deal with people in the area anyway.
Thank you again and have a nice weekend

Sylvie Boy
Alithea Real Estate International Inc.
co-director