As some of you are already aware, we've secured a purchase agreement for the land and are almost ready to begin collecting everyone's first installment so that we can proceed on to the next step. We've been setting up our company bank account to be able to receive international wires and working out a few final wrinkles before moving forward.
Our accountant's research into FATCA and its implications has led us to consider a modification to the business plan and we'd very much like to hear from members about it. In a nutshell, FATCA compels Chilean authorities and banks to report the assets of US citizens to the IRS. This results in double taxation because both countries want a cut of your revenue. This doesn't sit well with us at all so we looked at our options to find a way to spare our members this burden. The simplest solution we came up with was to do away with the shares altogether and instead operate in such a way that covers expenses but generates no profit as a company. That way, members would still own a lifetime membership with rights to their suite and common amenities but they wouldn't legally own any taxable foreign assets or liabilities. Members would still be able to rent their suites out in an AirBnB fashion and we could still host festivals and other such events on site but we would have to do it in such a way that the Fort Galt company isn't used as the conduit for revenue to the members.
If this sounds good to you too, let us know and if you have any questions or concerns, please don't hesitate to ask.