Foreign Buyer's Guide to US Real Estate | NYC & Miami | Manhattan Miami

Unlike many countries, US real estate operates with full transparency. Closed sales data becomes public within 60 days. Agents are required to share exclusive listings within 24 hours, giving all brokers access to all inventory.

You don't need to go from agent to agent to find properties. A single buyer's agent can show you anything on the market — and often knows about properties before they're publicly listed.

In the US, it has been standard practice for sellers to pay both the listing agent and buyer's agent commissions. Recent rule changes (2024-2025) now require written buyer-broker agreements, but in competitive markets like NYC and Miami, most sellers still offer to pay the buyer's agent commission.

This means having your own representation typically costs you nothing — and you absolutely should have representation. The seller's agent works for the seller. You need someone working for you.

This is worth emphasizing: The US does not penalize foreign buyers.

Countries with outright bans on foreign buyers:

• Canada: Federal ban extended through January 1, 2027 (exemptions for work permit holders)
• Australia: Ban on purchasing established dwellings from April 2025 through March 2027 (new builds and vacant land still permitted)
• New Zealand: Most foreigners banned since 2018 (Australians and Singaporeans exempt; "golden visa" holders may now purchase one property worth NZ$5M+)

Countries with punitive foreign buyer taxes:

• Toronto, Canada: 35% total (25% provincial NRST + 10% municipal tax as of January 2025)
• Ontario (outside Toronto): 25% Non-Resident Speculation Tax
• Vancouver/BC: 20% foreign buyer tax
• Singapore: 60% additional buyer's stamp duty for foreigners
• Sydney/NSW: 9% surcharge (increased from 8% in January 2025)
• Melbourne/Victoria: 8% surcharge plus annual land tax surcharge
• London/UK: 2% non-resident surcharge

Proposed restrictions:

• Spain: 100% tax on non-EU buyers proposed in May 2025 (not yet law; faces significant parliamentary hurdles and legal challenges)

Note: Hong Kong eliminated its 30% Buyer's Stamp Duty for non-residents in February 2024, making it one of the few major markets to reverse course on foreign buyer restrictions.

In the US, foreign buyers pay the same transfer taxes as domestic buyers. Total closing costs in NYC and Miami run 2-6% depending on purchase price and financing — the same as any American would pay.

Florida Restrictions: SB 264 (Countries of Concern)

This is critical for anyone considering Miami or Florida property.

Effective July 1, 2023, Florida Senate Bill 264 restricts property purchases by nationals from seven "foreign countries of concern." This law remains in effect despite ongoing legal challenges.

Countries affected:

• China (most restrictive)
• Russia
• Iran
• North Korea
• Cuba
• Venezuela
• Syria

China-specific restrictions:

Chinese citizens who are NOT US citizens or lawful permanent residents are essentially banned from purchasing property in Florida. The only exception is narrow:

• May purchase ONE residential property
• Property must be 2 acres or less
• Property must NOT be within 5 miles of any military installation
• Buyer must hold a non-tourist visa or have been granted asylum

Other countries (Russia, Cuba, Venezuela, Iran, Syria, North Korea):

Nationals from these countries cannot purchase property within 10 miles of military installations or critical infrastructure. Given Florida's military presence, this restriction covers approximately 98.5% of residential land in the state — effectively a near-total ban.

Penalties are severe:

Violations can result in forfeiture of the property to the state. Criminal penalties include felony charges with up to 5 years imprisonment. These penalties apply to buyers, sellers, and real estate professionals involved in prohibited transactions.

All buyers must sign an affidavit at closing confirming compliance with SB 264, regardless of nationality.

Current legal status:

The law is being challenged in federal court (Shen v. Simpson) on constitutional grounds, including equal protection and federal preemption. As of late 2025, the 11th Circuit Court of Appeals has refused to block enforcement. The law remains in effect.

If you are a national of one of these countries: Consult with a US immigration attorney before attempting to purchase Florida property. New York does not have similar restrictions — NYC remains open to buyers from all countries.

Foreign nationals must elect to pay US income taxes on any net income (rental revenues minus expenses) derived from rental property. If this election is not made in a timely fashion (for example, if US income tax returns not filed), a tax of 30% of the gross rental income will be assessed. Under this scenario, the investor would not be able to deduct any expenses, including depreciation, interest, property taxes, common charges, etc. Even if the Foreign Investor is incurring tax losses in the beginning years of their investment, and therefore doesn’t owe any taxes to the government, they still must file their tax returns in a timely manner to make the election.

When a foreign owner sells US real estate, the IRS wants to ensure it collects any capital gains tax owed. Under the Foreign Investment in Real Property Tax Act (FIRPTA), the buyer's closing agent withholds 15% of the gross sale price and remits it to the IRS.

This is not an additional tax — it's a withholding. When you file your US tax return reporting the sale, you calculate actual capital gains tax owed. If the withholding exceeds your tax liability, you receive a refund.

Example: You sell a property for $2,000,000 with a $300,000 gain. FIRPTA withholding is $300,000 (15% of gross). Your actual capital gains tax might be $60,000. You'd receive a $240,000 refund after filing.

FIRPTA is administrative, not punitive. Plan for the withholding and work with a tax professional to file for your refund.

This is the most significant tax exposure for foreign owners — and the one that requires professional planning.

The problem:

When a foreign national dies owning US real estate, the estate is subject to federal estate tax of approximately 40%. The exemption amounts are dramatically different depending on your status:

• US citizens and green card holders: $13.99 million per person in 2025 ($27.98 million for married couples). Starting January 1, 2026, this increases to $15 million per person ($30 million for couples) and is now permanent law, indexed for inflation annually.
• Foreign nationals: $60,000. This amount has not changed since 1976 and is not indexed for inflation.

On a $3 million property, a US citizen would owe nothing. A foreign national's estate could owe over $1.1 million in federal estate tax.

Solutions:

Option 1: Foreign corporation structure

Purchase through a foreign corporation (BVI, Cayman, etc.). You own shares in the foreign corporation, not US real estate directly. Foreign corporate shares are not US-situs assets and aren't subject to US estate tax.

Downsides: Some lenders won't finance corporate purchases. There may be additional reporting requirements and costs. Consult with a US tax attorney.

Option 2: Life insurance hedge

Purchase a term life insurance policy sized to cover potential estate tax liability. Place the policy in a trust. If you die while owning the property, insurance proceeds pay the estate tax and your heirs keep the property.

This approach works when corporate structuring isn't feasible (e.g., you need conventional financing).

Option 3: Sell before death

Not a plan, but worth noting: Estate tax only applies to assets owned at death. If you sell and repatriate proceeds, there's no US estate tax exposure.

The bottom line: Do not buy US real estate without consulting a tax attorney about estate planning. The stakes are too high.

US tax liability is only part of the picture. Depending on your country of residence, you may have additional reporting requirements or tax obligations at home.

The US has tax treaties with many countries to avoid double taxation. Your home country may offer credits for US taxes paid, or may tax foreign real estate holdings differently than domestic ones.

Work with a tax professional who understands both US requirements and your home country's rules.

Many of our foreign clients never visit the US during the purchase process. Everything can be handled remotely:

• Virtual property tours
• Electronic document signing
• Power of Attorney to your attorney for closing
• Wire transfer of funds

For LLC purchases, a Letter of Consent achieves the same result as Power of Attorney.

We regularly conduct walk-throughs on behalf of clients, find tenants, and manage properties for owners who have never set foot in the country.