Inbound Tax Planning
U.S. tax planning for foreign nationals, non-resident aliens, and internationally mobile individuals and families investing or relocating to the United States.
From initial residency analysis through long-term structuring, across the Americas and Europe.
Cross-Border Entry Into the U.S. Tax System Requires Planning — Before It Begins
The United States taxes its residents on worldwide income from the moment residency begins. For foreign nationals arriving with foreign businesses, investment portfolios, foreign trusts, and offshore accounts, the transition into the U.S. tax system carries significant risk — and equally significant opportunity. The decisions made before a client becomes a U.S. tax resident often determine the tax landscape for decades to come.
Inbound tax planning addresses the full spectrum of U.S. tax issues that arise when individuals and capital cross into the United States. It encompasses the structural analysis of how foreign assets and entities will be treated under U.S. law, the identification of planning opportunities available only before residency begins, and the ongoing compliance framework required once U.S. tax obligations attach.
Effective inbound counsel requires fluency in both the technical rules — residency determination, treaty analysis, FIRPTA, FATCA, the passive foreign investment company (PFIC) regime, and the controlled foreign corporation (CFC) rules — and the practical realities of clients whose financial lives span multiple jurisdictions, legal traditions, and languages. Importantly, inbound planning extends beyond income tax: the U.S. gift and estate tax regime applies to U.S. persons on a worldwide basis from the moment residency begins, and clients arriving with complex estate plans built under foreign law — including civil law structures such as usufructs and forced heirship arrangements — need that planning reviewed and often restructured before residency commences. We advise clients from the earliest planning stages through the establishment of a durable, compliant U.S. tax and estate planning position.
Our Approach
A disciplined, phase-based methodology from initial residency analysis through long-term planning and compliance.
Residency & Initial Analysis
- Residency determination — Substantial Presence Test and Green Card rules
- Dual-status year analysis and planning
- Tax treaty tie-breaker analysis
- Identification of pre-residency planning opportunities
- Conflicts check and engagement
Pre-Residency Structuring
- PFIC analysis and pre-immigration restructuring
- CFC analysis — Subpart F, NCTI, check-the-box planning
- Foreign trust analysis — grantor trust status, throwback exposure
- Pre-immigration gift and transfer planning
- Basis step-up planning for foreign assets
- Coordination with immigration counsel
Ongoing Planning & Compliance
- U.S. income tax planning for NRAs with U.S.-source income
- Structuring of U.S. investments
- FBAR and international information return compliance
- FATCA status determination and Form 8938 compliance
- Treaty-based income and estate tax analysis
- Annual compliance coordination
Who We Advise
We advise a broad range of inbound clients — from individuals relocating for family or lifestyle reasons to investors deploying capital across U.S. markets.
Internationally Mobile Individuals & Families
Foreign nationals relocating to the United States for business, education, or lifestyle, requiring full pre-immigration tax and estate planning before residency begins.
Foreign Investors in U.S. Real Estate
Non-resident alien individuals and entities acquiring U.S. residential and commercial real estate, requiring structuring to minimize FIRPTA withholding, estate tax exposure, and income tax on rental income.
Foreign Business Owners
Entrepreneurs and family business owners establishing or expanding U.S. operations, requiring entity structuring, classification analysis, and transfer pricing fundamentals from the outset.
Non-Resident Alien Beneficiaries
NRA individuals inheriting U.S.-situs assets or receiving distributions from U.S. trusts, requiring guidance on U.S. income tax, estate tax, and reporting obligations.
Foreign Nationals with U.S.-Person Heirs or Beneficiaries
Non-U.S. individuals whose potential heirs, donees, or trust beneficiaries are — or may become — U.S. persons, requiring proactive planning to minimize U.S. estate tax exposure, Section 2801 gift and bequest tax risk, and the U.S. reporting obligations of their U.S.-person family members.
Family Offices & Private Wealth Advisors
Multi-family offices and private banks coordinating U.S. tax planning for international clients, requiring a reliable U.S. international tax partner with multilingual capability.
Technical Depth Across the Full Inbound Tax Landscape
Depth across the U.S. tax provisions most consequential for inbound individuals and investors.
Residency Determination
Analysis under the Substantial Presence Test, Green Card rules, and applicable treaty tie-breaker provisions — including planning for the year of arrival and dual-status years.
FIRPTA
Comprehensive FIRPTA analysis for buyers, sellers, and withholding agents — including USRPHC determination, withholding certificate applications, treaty-based exemptions, and disposition planning for foreign investors in U.S. real estate.
PFIC & CFC Planning
Pre-immigration analysis and restructuring of passive foreign investment companies (PFICs) and controlled foreign corporations (CFCs) held by incoming residents — addressing Subpart F, NCTI, and check-the-box elections before U.S. tax residency begins.
Foreign Trust Analysis
Classification and planning for foreign grantor and non-grantor trusts — addressing grantor trust status, the throwback rules, and Forms 3520 and 3520-A compliance.
Treaty Analysis
Analysis of applicable U.S. income and estate tax treaties — identifying treaty-based exemptions, reduced rates, and tie-breaker positions for individuals moving from treaty countries.
FATCA & International Information Returns
FATCA status determinations, Form 8938 compliance, and preparation and review of international information returns — Forms 5471, 5472, 8865, 8858, and 8621.
Pre-Immigration Estate & Transfer Tax Planning
Review and restructuring of existing estate plans before U.S. residency begins — including analysis of civil law structures such as usufructs and forced heirship arrangements, pre-immigration gifting to complete transfers before the U.S. gift and estate tax regime applies, and coordination with foreign estate counsel to align the estate plan with U.S. person status.
Representative Matters
Select anonymized engagements. Prior results do not guarantee a similar outcome.
PRE-IMMIGRATION
United States / Europe
Advised a high-net-worth individual relocating to the United States from a European jurisdiction on a comprehensive pre-immigration tax plan — including restructuring of foreign business interests, analysis and restructuring of PFIC holdings, foreign trust review, and basis step-up planning for foreign investment assets. All restructuring completed prior to the date of U.S. tax residency commencement.
PRE-IMMIGRATION / ESTATE PLANNING
United States / Europe
Advised a European individual and family preparing to relocate to the United States on pre-immigration estate and gift tax planning — including analysis of existing usufruct arrangements established under civil law, pre-immigration gifting of appreciated foreign assets to non-U.S. family members before the U.S. gift and estate tax regime applied, and restructuring of the family estate plan to reflect worldwide estate tax exposure as a U.S. person.
FIRPTA / REAL ESTATE
United States / Latin America
Advised a foreign corporation holding a U.S. real property holding corporation that owned high-value Miami residential real estate on the U.S. tax consequences of proposed restructuring options — including FIRPTA withholding analysis on capital contributions and membership interest transfers, evaluation of IRC nonrecognition exceptions under Section 1445, and structuring of a third-country intermediary financing arrangement.
FIRPTA / REAL ESTATE
United States / International
Structured U.S. real estate holdings for a foreign investor acquiring multiple Miami residential properties through a tiered holding structure consisting of a foreign holding company and U.S. LLCs — advising on FIRPTA exposure, U.S.-situs asset classification, entity formation, income tax planning, and ongoing compliance obligations. Counseling conducted in French.
INBOUND / NRA ESTATE
United States / Europe
Advised non-resident alien heirs on U.S. estate tax exposure for U.S.-situs assets held by a European decedent, including U.S.-situs asset classification, the application of the $60,000 NRA exemption, treaty-based analysis, and IRS transfer certificate procedures to release frozen U.S. financial accounts.
MULTI-JURISDICTIONAL STRUCTURING
United States / Panama / Singapore / BVI / Cayman Islands
Advising an ultra-high-net-worth non-resident individual on the U.S. tax analysis, compliance remediation, and ongoing restructuring of a multi-tiered international holding structure with entities across the United States, Panama, Singapore, the BVI, and the Cayman Islands — including check-the-box elections, retroactive entity classification analysis, FBAR and international information return compliance, beneficial ownership reporting, and coordination with foreign counsel across jurisdictions.
Frequently Asked Questions
When does U.S. tax residency begin for a foreign national?
U.S. tax residency begins either when a lawful permanent resident (green card holder) first enters the United States in that status — not merely upon issuance of the green card — or, for non-green card holders, when they meet the Substantial Presence Test — generally 183 days in the United States in a given year, calculated under a three-year weighted formula. The exact date matters enormously for planning purposes and can often be managed through careful timing of travel and the commencement of residency.
What is the most important tax planning step before moving to the United States?
The most valuable planning almost always occurs before residency begins. Pre-immigration restructuring of foreign assets — particularly PFICs, CFCs, foreign trusts, and closely held foreign businesses — can eliminate or significantly reduce U.S. tax exposure that would otherwise arise automatically upon residency. Once residency begins, many of these opportunities are foreclosed.
Do U.S. income tax treaties protect foreign nationals from U.S. taxation?
U.S. income tax treaties can reduce withholding rates on certain categories of U.S.-source income and provide tie-breaker rules for dual residents. However, once a foreign national becomes a U.S. tax resident, treaty protection is limited and must be evaluated on a treaty-by-treaty basis. Not all countries have income tax treaties with the United States, and estate tax treaties are even less common.
What is FIRPTA and when does it apply?
FIRPTA — the Foreign Investment in Real Property Tax Act — imposes U.S. withholding tax on the disposition of U.S. real property interests by foreign persons. Withholding is generally 15% of the gross sales price, regardless of the actual gain. Careful structuring before acquisition can reduce or eliminate FIRPTA exposure.
What U.S. reporting obligations apply to foreign nationals who become U.S. residents?
U.S. tax residents must report worldwide income and are subject to extensive international information reporting: FBAR (FinCEN Form 114) for foreign bank accounts, Form 8938 for specified foreign financial assets, Form 5471 for foreign corporations, Form 3520 for foreign trusts and inheritances, and Form 8621 for PFICs, among others. Penalties for non-compliance can be severe.
Do you work with foreign tax advisors?
Yes. We regularly coordinate with foreign counsel and tax advisors — in Europe, Latin America, and beyond. Our multilingual capability (English, Spanish, French, and Portuguese) enables direct communication with foreign advisors and clients without translation intermediaries.
Pre-Immigration Tax Planning Checklist
A practical guide covering the key U.S. tax planning steps for individuals and families preparing to establish U.S. tax residency — including asset inventory, PFIC and CFC analysis, foreign trust review, and residency timing.
The information on this page is provided for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by use of this website. All engagements are subject to a conflicts check and execution of an engagement letter. Prior results do not guarantee a similar outcome.