It is important for most foreign investors in the United States real estate market to structure their investments properly in order to minimize U.S. tax consequences. This structuring frequently involves the establishment of both a U.S. and an offshore holding company. As the agent for the investors, Caltech can arrange for the creation of the U.S. Company and, with the investor’s approval, can provide both officers and directors for that company. By serving as officers and directors of the U.S. holding company, Caltech is more easily able to handle all of the administrative details of property management, such as opening corporate bank accounts and filing necessary tax returns.
In addition, Caltech can work with a trust company or other institutions in such locations as the Channel Islands, the Cayman Islands, or the British Virgin Islands to establish the required offshore holding companies. These locations are selected since there are no local taxes and since they have long-established legal traditions protecting the confidentiality of investors.