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US Banking & Tax Guidance

Your US bank account, tax obligations, and FIRPTA planning. Addressed before you close.

Foundry Property Group facilitates US bank account setup for international investors purchasing rental property in Texas and Florida. We know which institutions accept foreign-owned LLC accounts, what documentation they require, and how to get through compliance without delays. $750 standalone. Included for Foundry investors.

Opening a US bank account as a foreign national investing in rental property.

Every international investor who purchases US rental property needs a US bank account for their investment entity. This is the account where rental income is deposited by the property management company, where property expenses are paid, and where the investor receives net income distributions. Without a US account, the PM cannot efficiently collect and disburse funds.

The challenge for most overseas investors is that traditional US banks (the names you recognize) almost always require an in-person branch visit to open an account for a foreign-owned LLC. Their compliance departments are not set up for remote onboarding of non-resident entities, and many branch bankers have never processed the documentation for a foreign-owned LLC.

There is a second option: fintech banking institutions that support fully remote account opening for foreign-owned LLCs. These are FDIC-insured accounts with US routing and account numbers that work for receiving rent deposits, paying expenses, and wiring funds internationally. Not all of them are reliable. Several have tightened their compliance requirements in 2025 and 2026, rejecting applications they would have approved a year ago. Others have restrictions on the types of addresses they accept or the countries they serve.

Foundry knows which institutions are currently accepting foreign-owned LLC accounts, which ones support fully remote setup, what documentation format each one expects, and how to structure the application to avoid rejection. We have been through this process enough times to know where the friction points are and how to get around them. That is what the $750 covers.

How the bank account process works

The banking setup runs in parallel with your LLC formation and property acquisition.

01
Entity Formation Complete
Your LLC must be formed and your EIN issued before a bank account can be opened. Foundry coordinates timing so there is no gap between entity creation and banking. If you are using Foundry's LLC formation service, both processes run in parallel.
02
Banking Path Selection
Foundry recommends either a fintech institution that supports fully remote account opening, or a traditional bank that requires a one-time US branch visit. The right option depends on whether you can travel to the US, your country of residence, and which institutions are currently accepting applications from your profile.
03
Application and KYC
Foundry prepares your documentation package in the format the selected institution expects, submits or guides you through the application, and manages the KYC (Know Your Customer) verification process. If the bank's compliance team has questions, we handle them. If an application is rejected, we pivot to an alternative institution.
04
Account Active and PM Linked
Once the account is open and verified, your property management partner is set up to deposit rental income directly. You retain full control of the account including online banking access, wire transfer capability, and debit card if available from the institution.

Documentation typically required

Banks vary in their exact requirements, but these are the documents most institutions need for a foreign-owned LLC account.

DocumentDetails
Articles of OrganizationFiled and stamped by the state. Proves the LLC legally exists.
Operating AgreementDefines the management structure and members of the LLC.
EIN Confirmation LetterIRS-issued letter confirming the entity's tax identification number.
PassportValid passport for each member/manager of the LLC. Used for identity verification.
Proof of Foreign AddressUtility bill or bank statement dated within 90 days. Required for KYC compliance.
Initial DepositMost banks require a minimum opening deposit, typically $100 to $500.

Foundry provides all entity documents as part of the LLC formation process. The investor provides personal identification and address verification. We compile the package and submit it to the bank in the format they expect.

Banking Facilitation Fee
$750
Flat fee. Covers the full process from institution selection through active account.
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Institution selection based on your country, entity type, and remote vs. in-person preference

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Documentation package prepared in the format the selected institution requires

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Application submission and KYC management through approval

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Pivot to alternative institution if the first application is rejected

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PM linked to the account for rent deposits once active

Foundry investors receive banking facilitation as part of the investment process at no additional cost. The $750 standalone fee is for investors, operators, and property groups who need banking setup outside of a Foundry property purchase. Bank account fees charged by the institution itself (if any) are separate and paid directly to the bank.

FIRPTA withholding: what every foreign investor needs to know before buying.

FIRPTA (Foreign Investment in Real Property Tax Act) is the federal law that governs tax withholding when a foreign person sells US real estate. Most investment companies do not mention FIRPTA until the investor is ready to sell, at which point the 15% withholding comes as a surprise. Foundry addresses it on day one.

FIRPTA does not apply when you buy. It applies when you sell. But understanding it at the point of purchase allows your CPA to plan for it, structure the transaction efficiently, and avoid unnecessary withholding when the time comes.

How FIRPTA Works
When a foreign person sells US real property, the buyer withholds 15% of the gross sale price.

This 15% is not an additional tax. It is an advance payment toward your US income tax liability on the capital gain from the sale. It is remitted to the IRS by the buyer (or the title company on the buyer's behalf) at closing.

When you file your US tax return for the year of the sale, you report the actual gain and calculate the tax owed. If the amount withheld exceeds your actual tax liability, the IRS refunds the difference. If your gain is small or the property did not appreciate, the refund can be substantial.

Withholding certificates (IRS Form 8288-B) can reduce or eliminate FIRPTA withholding at closing if filed in advance. Your CPA handles this as part of the disposition planning.

Annual tax obligations for foreign rental property owners

Owning US rental property creates annual tax filing requirements. Here is what you need to know.

Federal Income Tax Return
Foreign nationals who earn rental income from US property must file IRS Form 1040-NR (Non-Resident Alien Income Tax Return) annually. Rental income is taxed at graduated rates after deducting all operating expenses.
Deductible Operating Expenses
Property management fees, property taxes, insurance premiums, HOA/CDD fees, repairs and maintenance, travel to the property (if applicable), and mortgage interest (if financed) are all deductible against rental income.
Depreciation
The IRS allows residential rental property owners to depreciate the value of the structure (not the land) over 27.5 years. This non-cash deduction often reduces taxable rental income significantly, sometimes to zero in the early years of ownership.
ITIN Requirement
To file a US tax return, foreign investors need an Individual Taxpayer Identification Number (ITIN). This is applied for through the IRS with your first tax filing. Foundry's CPA referral partners handle the ITIN application as part of the process.
State Income Tax
Texas and Florida have no state income tax. This means Foundry investors only file a federal return, not a state return. This is a meaningful simplification and cost savings compared to investing in states that impose income tax on rental earnings.
Tax Treaty Benefits
The US has income tax treaties with many countries that may affect how your US rental income is treated in your home country. Your home-country tax advisor should review the applicable treaty to determine whether foreign tax credits or exemptions apply.

Foundry connects you with CPAs who specialize in non-resident US tax filing.

Filing a US tax return as a non-resident property owner is not complicated, but it does require a CPA who knows the rules. Most domestic CPAs are unfamiliar with Form 1040-NR, ITIN applications, FIRPTA withholding certificates, and the specific deductions available to foreign rental property owners.

Foundry maintains a referral network of CPAs who handle non-resident filings as a core part of their practice. These are not generalist accountants. They file 1040-NR returns for overseas property owners regularly and understand the mechanics of depreciation schedules, treaty benefits, and FIRPTA planning.

Foundry puts you in front of a CPA at the point of purchase, not at year-end when the filing deadline is approaching. This gives your CPA time to set up the ITIN application, establish the depreciation schedule, and plan for the full tax picture before the first year of ownership concludes.

CPA fees for non-resident tax filing typically range from $500 to $1,500 per year depending on complexity. This is a direct cost to the investor and is not included in Foundry's service fees.

Banking and tax questions

Common questions from international investors about US banking and tax obligations.

Can I open a US bank account without visiting the United States?
Yes, through fintech banking institutions that support remote onboarding for foreign-owned LLCs. These are FDIC-insured accounts with US routing and account numbers. Not all fintech banks accept all nationalities, and several have tightened compliance requirements in 2025 and 2026. Traditional banks almost always require an in-person branch visit. Foundry knows which institutions are currently accepting applications and how to structure documentation to avoid rejection.
What is FIRPTA and when does it apply?
FIRPTA requires the buyer to withhold 15 percent of the gross sale price when a foreign person sells US real estate. This is an advance payment toward your capital gains tax, not an additional tax. Any overpayment is refunded when you file your return. FIRPTA does not apply at purchase. Foundry addresses FIRPTA planning at the beginning of the investment, not at the point of sale.
Do I need to file US taxes every year as a foreign property owner?
Yes. Foreign nationals who earn rental income from US property must file a federal income tax return (Form 1040-NR) annually. After deducting operating expenses and depreciation, many investors owe little or no federal tax in the early years of ownership. Texas and Florida have no state income tax, so only a federal return is required for Foundry properties.
What is an ITIN and how do I get one?
An ITIN is the personal tax ID the IRS issues to individuals who need to file US taxes but do not have a Social Security Number. Foreign property owners need an ITIN to file their annual return. The application is submitted with your first tax filing. Foundry's CPA referral partners handle the ITIN application as part of the engagement.
How much does banking facilitation cost?
$750 standalone. This covers institution selection, documentation preparation, application submission, KYC management, and pivot to an alternative institution if needed. Foundry investors who purchase property through the company receive banking facilitation at no additional cost. Bank fees charged by the institution itself are separate and paid directly to the bank.
How much does a CPA cost for non-resident tax filing?
$500 to $1,500 per year depending on complexity. This includes the ITIN application in the first year. The CPA fee is a direct cost to the investor and is separate from Foundry's service fees. Foundry provides the CPA introduction but does not set the CPA's pricing.

Questions about US banking or taxes?

Understanding the financial infrastructure is essential before investing. Foundry is available to walk you through the banking and tax landscape before you commit to anything.

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