We have an important reminder for foreign investors in US real estate: The Bureau of Economic Analysis (BEA) BE-12 Benchmark Survey must be filed by May 31, 2018.
All US affiliates in which foreign entities hold voting ownership interest (or the equivalent) of 10 percent or more must file this document. Note that foreign ownership of US real estate is considered a US affiliate. Those who’d usually file a BE-15 annual survey should instead submit the BE-12 Benchmark Survey for the 2017 fiscal year. However, residential real estate held exclusively for personal use and not for profit making purposes is not subject to the reporting requirements.
Also, keep in mind that the BEA doesn’t necessarily get in touch with you if you’re required to complete the survey. Failure to file may result in civil penalties ranging from $2,500 to $25,000. All survey responses are kept confidential under federal law.
About the BEA and BE-12 Benchmark Survey
Operating under the US Department of Commerce, the BEA compiles key economic statistics to measure the country’s economic performance.
The BE-12 Benchmark Survey, conducted every five years, collects financial data from US affiliates of foreign multinational enterprises and foreign direct investment in the US. The resulting information about the scope and effects of foreign-owned business activity in the country assists business leaders in making hiring and investment decisions. US lawmakers, various federal agencies, policymakers, researchers, and other groups depend on this data as well.
Find more information about the BE-12 Benchmark Survey here on the BEA website.