As an overseas investor deeply entrenched in the U.S. real estate market, I’ve seen my fair share of policy shifts that can make or break investment strategies. But nothing has me more excited than President Trump’s signing of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025. This landmark legislation, often referred to as the “Big Beautiful Bill,” is a massive win for real estate investors like us, especially those investing from abroad. It builds on the successes of previous tax reforms and delivers targeted benefits that slash costs, boost returns, and make U.S. properties an even more attractive asset class. In this post, I’ll break down the key advantages, share real-world examples of savings, and explain how this bill is supercharging foreign investment in American real estate—all while keeping the focus on the positives.
A Bold Step Forward Under President Trump
President Trump has long championed policies that put America first, and the OBBBA is a prime example. This comprehensive tax and economic package extends and enhances provisions that directly support real estate growth, making it easier and more profitable for international investors to pour capital into U.S. markets. By reducing tax barriers and incentivizing development, the bill creates a fertile environment for high-yield opportunities in residential, commercial, and even rural properties. It’s not just about domestic gains—foreign investors stand to benefit immensely, with streamlined rules that minimize withholding taxes and encourage cross-border deals.
Key Benefits: How the Big Beautiful Bill Saves You Money and Fuels Investment
The OBBBA packs a punch with investor-friendly changes that lower tax liabilities, accelerate deductions, and promote long-term holding. Here are some standout provisions tailored to real estate, complete with examples of potential savings:
- Restoration of Favorable CFC Rules for Foreign Investors. One of the bill’s smartest moves is restoring limits on downward attribution under Controlled Foreign Corporation (CFC) rules. This makes it simpler for non-U.S. investors to structure investments through U.S. blocker corporations without triggering unwanted CFC status.
- Savings Example: A foreign investor lending money to their U.S. real estate entity could avoid a 30% withholding tax on interest payments, potentially saving hundreds of thousands on large loans (e.g., $500,000 in taxes on a $10 million loan at 5% interest).
- Promotion of Investment: This tax efficiency opens the floodgates for inbound capital, making U.S. real estate a top choice for international portfolios by reducing friction in financing and ownership structures.
- Permanent 100% Expensing for Business Property The bill locks in full expensing for depreciable assets with a recovery period of 20 years or less, allowing investors to write off costs immediately rather than over time.
- Savings Example: Using cost segregation on a $2 million commercial property, you might expense $500,000 in fixtures and improvements right away, slashing your current-year tax bill by up to $185,000 (assuming a 37% tax rate).
- Promotion of Investment: Accelerated deductions improve cash flow, enabling quicker reinvestment into new projects and attracting more foreign capital to modernize and expand U.S. real estate holdings.
- Enhanced Qualified Business Income (QBI) Deduction Now made permanent, the 20% QBI deduction applies to eligible real estate income, including from REITs and partnerships, with relaxed limitations for higher earners.
- Savings Example: On $1 million in qualified real estate business income, you’d deduct $200,000, saving around $74,000 in federal taxes.
- Promotion of Investment: This boosts after-tax returns, drawing overseas investors to U.S. rental properties, developments, and funds, as it levels the playing field for pass-through entities.
- Permanent Renewal of Qualified Opportunity Zones (QOZs) QOZs are here to stay, with enhanced deferral options for gains reinvested in underserved areas.
- Savings Example: Defer $1 million in capital gains by investing in a QOZ fund, potentially holding off taxes indefinitely if held long-term, and enjoying basis step-ups for even more savings.
- Promotion of Investment: It channels foreign funds into revitalizing U.S. communities, offering high-growth potential in emerging markets while providing tax deferral incentives.
- Business Interest Deduction Boost The bill reinstates a generous 30% EBITDA cap on interest deductions, with exemptions for real estate trades.
- Savings Example: A leveraged real estate firm with $10 million EBITDA and $4 million in interest could deduct the full amount, saving over $1 million in taxes compared to stricter prior limits.
- Promotion of Investment: Lower borrowing costs encourage large-scale projects, making U.S. real estate more appealing for debt-financed acquisitions by international buyers.
- Support for Low-Income Housing and Rural Properties Increased low-income housing tax credits and exclusions for interest on rural/agricultural loans make these niches more viable.
- Savings Example: Developers could access millions more in credits, reducing equity needs by 12% on a $50 million affordable housing project—translating to $6 million in upfront savings.
- Promotion of Investment: These perks diversify opportunities, pulling in foreign investors interested in stable, subsidized returns from U.S. housing and farmland.
Overall, these changes could save savvy overseas investors millions annually through reduced taxes and better financing, while fostering a boom in U.S. real estate development. The bill’s emphasis on permanence provides certainty, encouraging long-term commitments from abroad.
Start Today: Get Pre-Approved for a U.S. Mortgage as a Non-Resident Investor!
With the signing of the One Big Beautiful Bill Act, there has never been a better time for overseas investors to dive into the U.S. real estate market. Take advantage of tax benefits, streamlined financing, and accelerated deductions — all while securing a pre-approval for your non-resident U.S. mortgage today!
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