The best way for a foreigner to invest in the U.S. to avoid reporting under FATCA is to do it through an off-shore company that is not disregarded for tax purposes. However, this strategy is not always compatible with others that are able to avoid reporting under CRS. Additionally, in the case of a Mexican investor, this is not the best strategy because Mexico has its own laws that require its citizens to report foreign transactions.
For CRS purposes, the best way to invest in the U.S. is through an American company that is not disregarded or through a trust, because the U.S. does not participate in CRS reporting.
FATCA and REFIPRES
In the case of the Mexican investor, the best way to invest in the stock market in the U.S. and avoid FATCA and REFIPRES reporting at the same time is, through the creation of a non-grantor trust, the use of a foreign partnership, and combine them with one or more American LLCs, as is necessary.
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Are you an ultra-wealthy citizen of Mexico or other Latin American country who has considerable investments and assets in the U.S. as well as in your home country? You need to speak with an international estate planning attorney. MEG International is committed to helping you protect your assets, control the distribution of your assets after death, and determine the direction of your business or family after you are gone. Call us at (800) 694-6604 or contact us online today. Do not put off this important decision for later. Our firm will provide you with trustworthy and reliable representation so you can get the peace of mind of having made the right decisions.