Qualified Intermediary (QI)

A Qualified Intermediary (QI) is a financial institution or entity authorized by the IRS to act as an intermediary between a foreign investor and U.S. tax authorities. When a foreign person invests in U.S. assets, such as real estate or securities, the QI handles tax withholding and reporting on their behalf. This arrangement helps ensure compliance with U.S. tax laws while allowing the investor to benefit from streamlined procedures and potential tax treaty advantages. Essentially, a QI simplifies the complex tax requirements for foreign investors, providing a secure and compliant way to engage in U.S. investments.