Can Foreigners Buy Property in the USA?

Read the questions our international clients ask most often

1. Can a foreigner buy a house in USA?

Yes. The US federal government has no restrictions on foreign investment in US real estate, so it is generally a level playing field for US citizens, US resident aliens, and foreign nationals. Foreign purchases amount to less than 2% of total US residential sales and dollar volume, but certain states, especially New York and Florida, attract disproportionate international demand. For the NYC and Miami-specific purchase process, read our foreign buyers guide to NYC and Miami real estate, including FIRPTA, estate-tax planning, foreign-national financing, and remote closings.

2. What are the major rules for foreigners buying property in US?

Financing is readily available to foreign buyers when buying a property in the U.S. , but they often face challenges due to the absence of a U.S. credit history. Most large banks won't lend to foreigners unless they have a work visa, however, some international banks, like HSBC, will loan to foreigners regardless of residency status. Private banks, such as JP Morgan and Citi Private will also make loans to non-us residents. A foreign national mortgage loan usually will require a larger down payment than a mortgage from a local resident.

U.S. estate-tax treatment depends on domicile, ownership and treaty eligibility. For a non-U.S.-citizen who is not U.S.-domiciled, an estate return is generally required when U.S.-situated assets exceed $60,000, subject to the applicable rules. An LLC alone does not automatically remove estate-tax exposure. 2026-10-19 · IRS 706-NA

FIRPTA generally requires the buyer to withhold 15% of the amount realized when a foreign seller disposes of U.S. real property. Exceptions and IRS withholding certificates can reduce or eliminate withholding. It is credited against the seller's tax; only an overpayment is refundable. 2026-10-19 · IRS FIRPTA · IRS

View our blog 'Four Rules for Foreigners Buying Property in USA" below!

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3. Do foreign buyers have to pay extra stamp duties?

Closing taxes and costs depend on location, price, financing and the contract. One percentage cannot describe both Manhattan and Miami. Request an itemized estimate, including any buyer-broker fee. 2026-10-19 · NY · Florida

4. Do I have to pay a brokerage commission when buying a property?

Broker commissions are negotiable and are not set by law. The seller may agree to pay some or all of your buyer-broker fee. Any amount you owe depends on your written buyer agreement and the transaction terms. We confirm this before you commit. 2026-10-19 · NAR · REBNY

It is also best to have a real estate attorney who has worked on international transactions in the past. In addition, a tax professional will be useful. We can recommend these professionals who we have been working with for year.

To learn more, check out 'The Foreign Buyer's Checklist For Purchasing Manhattan Real Estate':

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5. Can a foreigner buy a house in USA with a mortgage?

Mortgage loans for foreign nationals are readily available. For instance, HSBC, Wells Fargo and many private banks will act as mortgage lenders to foreigners by offering foreign national loans. Below are highlights of HSBC's terms for foreigners national mortgage:

• 30% Minimum down payment

• $3 million maximum mortgage amount, which translates to a property value of $4.3 million

• $50,000 or $100,000 on deposit from HSBC

• 12 months reserves (mortgage payment, common charge, and taxes) are required to be on deposit (in addition to the funds on deposit)

A knowledgeable real estate agent can assist in securing a mortgage and working through the financing process. A local bank won't lend to foreigners as they have no US credit report, however, HSBC is skilled at reviewing foreign financial records and can provide mortgage approval to non us citizens even if they don't have US permanent residency.

These mortgage loans can be for residential property used as a second home or an investment property. Generally, if the apartment will be used as an investment property, the mortgage interest rate will be a bit higher.

Interest rates vary on a daily basis, so connect with us for the latest rates.

6. How are foreigners treated differently than US residents when buying a home?

United States tax policy is generally favorable to both foreign investors in US real estate and residents alike on property ownership. Therefore, there are a few specific rules for foreigners buying property in the USA. Some differences include buying in co-ops, which prefer buyers of a primary residence. Also, a bank's underwriter will treat the foreign buyer as a bit riskier and charge an extra 1/2 point in the interest rate, but these are not government regulations. A knowledgeable real estate agent can help foreign buyers understand these differences and work through the buying process.

Want to learn about Adapting to Life in the USA?

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7. Do I need multiple real estate agents to find a property?

In the US, it is wisest to work with one professional real estate broker during your search, especially for foreign buyers in the US property market. Unlike London, Paris and Brazil, the US property market is very transparent. To encourage velocity in the real estate market, The Real Estate Board of New York and Florida Department of State, for example, require brokerages to share their exclusive property listings within 24 hours, so a good buyer's broker can get you in to see any apartment on the market. Committing to one broker means you get the highest service level from that broker, as all the broker's attention will be on you and your search. Hiring a knowledgeable real estate agent is crucial, especially for foreign buyers, to address the complexities of real estate transactions and provide valuable insights into market trends and legal requirements.

8. What types of property can I buy as a foreigner?

Foreign investments in US real estate are generally restricted to purchasing condos, condops, single family homes, and multi family homes. In Manhattan, generally, Foreign buyers are NOT restricted from buying condominiums, condops, single-family homes, or multi-family homes. Co-ops prefer primary homeowners and generally prohibit foreign ownership unless the majority of the buyer's assets and primary source of income are in the US. Learn about the difference between condo and coop. A knowledgeable real estate agent can help find suitable properties foreigners are looking for, whether that is a vacation property or an investment property.

Want tips on investing in Miami Real Estate?

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9. How should I structure the property purchase to minimize taxes?

U.S. estate-tax treatment depends on domicile, ownership and treaty eligibility. For a non-U.S.-citizen who is not U.S.-domiciled, an estate return is generally required when U.S.-situated assets exceed $60,000, subject to the applicable rules. An LLC alone does not automatically remove estate-tax exposure. 2026-10-19 · IRS 706-NA

• Consider Federal and state tax issues, as well as the impact of tax treaties.

• Seek local counsel in the US for structuring (LLC, Foreign Corp, etc.) and tax advice.

• Always consult your attorney before signing contracts

• Learn more about the Cost Components of a Real Estate Investment 

10. Do I have to worry about income taxes?

Depreciation and allowable expenses, including mortgage interest, can offset rental income. Unused passive rental losses generally carry forward until usable, subject to passive-activity, at-risk and other limits; there is no general seven-year expiry. This can leave positive cash flow with little or no current federal income tax, but no 15-year tax-free period is guaranteed. The result depends on rent, expenses, financing, tax basis and ownership. A nonresident individual may need an IRC 871(d) election and Form 1040-NR to claim net-basis deductions. Property taxes and tax on sale may still apply. 2026-10-19 · IRS 527 · IRS 925 · IRS 871(d)

Foreigners are allowed to purchase property in the United States without needing a Taxpayer Identification Number (TIN). However, obtaining a TIN is crucial in specific circumstances, especially regarding tax responsibilities. For example, if you intend to rent out the property or sell it later, a TIN is required for reporting rental income, paying related taxes, and adhering to the Foreign Investment in Real Property Tax Act (FIRPTA) regulations. A knowledgeable real estate agent can help foreign buyers understand their tax responsibilities and stay compliant.

Individuals not eligible for a Social Security Number (SSN) can apply for an Individual Taxpayer Identification Number (ITIN) using Form W-7. This process involves providing documentation to verify your foreign status and identity.

11. For foreigners selling property in USA, what issues should I be aware of?

Tax on sale depends on gain, holding period and ownership. Depreciation reduces tax basis and may affect the tax due on sale. State taxes may also apply; there is no universal 28% federal maximum for a foreign property seller. 2026-10-19 · IRS 409 · IRS 527

FIRPTA generally requires the buyer to withhold 15% of the amount realized when a foreign seller disposes of U.S. real property. Exceptions and IRS withholding certificates can reduce or eliminate withholding. It is credited against the seller's tax; only an overpayment is refundable. 2026-10-19 · IRS FIRPTA · IRS

Closing taxes and costs depend on location, price, financing and the contract. One percentage cannot describe both Manhattan and Miami. Request an itemized estimate, including any buyer-broker fee. 2026-10-19 · NY · Florida

12. What about conducting due diligence and closing the deal?

Conducting due diligence is a critical step in the home-buying process, especially for foreign investment in US real estate. A good attorney will provide the legal services required to perform complete due diligence. It involves a thorough examination of the property's condition, title, and any potential issues that could affect its value or ownership. Here are some key aspects to consider:

• Property Inspection: Hire a professional inspector to examine the property's condition, including its foundation, roof, plumbing, electrical systems, and any signs of damage or needed repairs. This step makes you aware of any potential issues before finalizing the purchase.

• Title Search: Conduct a thorough title search to confirm the seller has clear ownership of the property and there are no outstanding liens or disputes. This helps prevent any legal complications that could arise from unclear property ownership.

• Review of Property Records: Review the property's records, including its deed, title report, and any outstanding mortgages or liens. This provides a comprehensive understanding of the property's legal and financial status.

• Environmental Concerns: Check for any environmental concerns, such as nearby industrial sites, flood zones, or other potential hazards. This confirms that the property is safe and suitable for your intended use.

Once due diligence is complete, it's time to close the deal. This involves:

• Signing the Purchase Agreement: Sign the purchase agreement, which outlines the terms of the sale, including the price, closing date, and any contingencies. This legally binds both parties to the agreed terms.

• Finalizing Financing: Finalize your financing arrangements, including securing a mortgage and completing any necessary paperwork. Confirm that all financial aspects are in order before proceeding to the closing.

• Closing: Attend the closing meeting, where the property is transferred to your ownership, and complete any remaining paperwork. This is the final step in the buying process, where you officially become the property owner.

13. What are the requirements for insurance and utilities?

As a foreign buyer, it's essential to consider foreign investment in US real estate, insurance, utilities, and estate planning when purchasing property in the US.

• Insurance: Obtain insurance to protect your property against damage, loss, or liability. This may include homeowners insurance, title insurance, and liability insurance. These policies provide financial protection and peace of mind in case of unforeseen events.

• Utilities: Set up utilities in your name, including electricity, gas, water, and internet services. Confirm that all necessary services are activated and transferred to your name to avoid any disruptions.

We receive many questions about New York Real Estate.  Are you interested in getting your questions answered? We address them in 'Answers to FAQ's by Foreigners Interested in Buying and Selling NY Real Estate':

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14. What about Estate Planning and Taxes?

• U.S. estate-tax treatment depends on domicile, ownership and treaty eligibility. For a non-U.S.-citizen who is not U.S.-domiciled, an estate return is generally required when U.S.-situated assets exceed $60,000, subject to the applicable rules. An LLC alone does not automatically remove estate-tax exposure. 2026-10-19 · IRS 706-NA

Experienced real estate agents and attorneys can guide you through these processes and keep the transaction smooth.

Tax Implications: As a foreign buyer, it's essential to understand the tax implications of owning property in the US. This may include:

• Capital Gains Tax: Paying capital gains tax on any profits from selling the property. Understanding the rates and regulations can help you plan your investment strategy.

• Income Tax: Paying income tax on any rental income generated by the property. Properly reporting rental income and expenses is crucial to comply with US tax laws.

• Property Tax: Paying property taxes on the property's value. These taxes are typically assessed annually and vary by location.

Consult with a tax professional so you understand your tax obligations and any potential tax implications.

Foreign Ownership: As a foreign buyer, it's essential to understand the rules and regulations surrounding foreign ownership of property in the US. This may include:

• FIRPTA: Understanding the Foreign Investment in Real Property Tax Act (FIRPTA) and its implications for foreign buyers. FIRPTA requires foreign sellers to pay a withholding tax on the sale of US real estate.

• Tax Treaties: Understanding any tax treaties between the US and your home country that may affect your tax obligations. These treaties can provide benefits such as reduced tax rates or exemptions.

Consult with a real estate attorney or tax professional so you understand the rules and regulations surrounding foreign ownership of property in the US. This will help you address the complexities of the US property market and make informed decisions.

15. Conclusion: Successfully Buying Property in the US as a Foreign Buyer

Buying property in the US as a foreign buyer can be a complex and challenging process, but with the right guidance and advice, it can also be a successful and rewarding experience. By understanding the eligibility and requirements, working through the complexities of foreign property ownership, securing financing, and working with an experienced real estate agent, foreign buyers can achieve their goal of owning property in the US. For a foreign investor diversifying a portfolio or a foreign buyer looking for a vacation home, the US property market offers strong opportunities. With the right expertise and guidance, you can complete the purchase with confidence.