1. 1. Rowbotham& C O M P A N Y L L P Rowbotham & Company 101 2nd Street, Suite 1200 San Francisco, California 94105 www.rowbotham.com (415) 433 1177 Colliers International San Francisco Foreign Investment in U.S. Real Property EB5 & Others March 13, 2014 Brian Rowbotham br@rowbotham.com Destination USA
2. 2. Rowbotham& C O M P A N Y L L P E2 Investor Destination USA Business & Investment Visas EB5 $1m Green Card L1 U.S. Operating Company X Foreign Company U.S. Subsidiary U.S. affiliated company formed Employee relocation - 1 year employment in foreign country Managerial expertise X Foreign Company U.S. Corp Substantial investment into U.S. Corp. - Cash - IP (software, patents) Talent Business plan X Angels IP H1B Foreign Hire in U.S. Employment by U.S. Company Green Card Employees Quotas Must not displace U.S. workers 1 Investors - China - S. Korea - India Creates U.S. jobs
3. 3. Rowbotham& C O M P A N Y L L P Destination USA EB5 Investor Profile Foreign & U.S. Investing GP Foreign Family Certified Real Estate Development LP $1 mm or $500,000 Status - Green card issued - Family resides in CA - Founder/spouse runs businesses in China - U.S. resident subject to worldwide taxation 2 Family: Happy in Palo Alto
4. 4. Rowbotham& C O M P A N Y L L P EB 5 Program Objective Match.com for Investors and Project Managers China Investors Independent Investment and Advisory Firms in China Sales & Seminar Events in China China-based Licensed Immigration Consulting Firms Intermediaries and Consultants Regional Centers and Private Projects $ $ Beijing Shanghai Guangzhou U.S. New York Boston Houston Los Angeles San Francisco Investors - Seminars Trips to U.S. Projects evaluations U.S. immigration lawyers Processing EB 5 with USCIS [50% success rates] Securities law on U.S. & China Immigration lawyers, USCIS qualification of projects Introductions Projects $ X X X X X X X X X 3
5. 5. Rowbotham& C O M P A N Y L L P Destination USA Commercial Holding Structures Foreign LP 4 GP Foreign Corporation U.S. Corporation (a) (b) (1) Foreign Foreign Corporation U.S. Corporation (a) (b) (2) U.S. Property Foreign Foreign Corporation (a) (3) U.S. Inc. 1 U.S. Inc. 2 U.S. Inc. 3 (b) P1 P2 P3 (a) Typically a British Virgin Island [BVI] or Cayman corporation (b) U.S. corporation avoids: No country taxation, quick formation Foreign corporation avoids U.S. estate tax Second level branch Double tax when property is sold
6. 6. Rowbotham& C O M P A N Y L L P Financing LP Delaware Management Company Delaware Fixed Income to retirees units sold by local banks Average investment = $50,000 3,000 Ltd Partners (Germans) Bayerische Landesbank One Sansome Street Ownership & Management Interest | Fees Destination USA Investing in U.S. German Style 5 80 Sparkassen - Bavaria GP
7. 7. Rowbotham& C O M P A N Y L L P Destination USA Accountants & International Tax Consultants Brian Rowbotham is the founder and partner in charge of the firms international tax practice. Mr. Rowbotham has 35 years of experience in the cross-border tax planning structures for real estate. He has given presentations on real estate tax strategies in Hong Kong, Shanghai, Guangzhou, Mumbai, Singapore, and throughout Europe and the U.S. He is a frequent guest speaker at the Haas Business School, UC Berkeley on international tax where he received his bachelors and MBA degrees. In 2012 he was awarded the Distinguished Service Award by the California CPA Society for support of the profession and was featured on the cover of the California CPA for doing business in China. Email: br@rowbotham.com Harriet Leung is the partner of advisory services at Rowbotham & Company in San Francisco, heads the firms substantial Asia practice of high net worth individuals and families. Ms. Leung also works with many technology startup companies in multi-media gaming and social media. Ms. Leung has spoken at various tax and financial conferences in China, Hong Kong, Thailand and the U.S. Ms. Leung serves on the Board of Directors for the Hong Kong Association of Northern California where she recently organized and chaired a highly successful event on tax and immigration planning for EB-5 investors and is a frequent speaker on this subject. Ms. Leung is originally from Hong Kong, and moved to the U.S. in 1991. She has a Bachelors degree in Accounting and an MBA in Finance with honors from Golden Gate University, and is a Certified Public Accountant in California. Email: hleung@rowbotham.com Rowbotham & Company is a CPA firm based in San Francisco. Its practice is unique with its global clientele in Asia and Europe with many of its clients being foreign institutions and ultra high net worth families investing in U.S. real estate. Clients include large institutional investors in the U.S., and real estate funds in the U.S. and foreign countries. Projects in the past include real estate structures for joint ventures by foreign governments from Middle East (Kuwait, Qatar) and Germany. Private investment structures involve large investment funds based in Europe and Asia and with publicly traded enterprises and high net worth families. The firms practice in this area was established in 1990 and is well recognized as one of the premier firms on the West Coast with its consulting and advisory group of experienced accountants and lawyers. The firm is a member of Geneva Group International, an organization of accounting, legal and consulting firms in over 100 locations worldwide. 6