Can a foreigner buy a house in the USA?

Yes. The US federal government has no restrictions on foreign investment in US real estate, so it is pretty much a level playing field for US citizens, US resident aliens, and foreign nationals. Foreign purchases amount to less than 2% of total US transaction sales and dollar volume, though certain states attract more interest than others (Florida, California, New York and Texas lead in foreign-buyer activity).

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

Three things matter most: (1) Financing is available but harder than for US residents. Most large banks won't lend without a US credit history or work visa, though international banks like HSBC and private banks like JP Morgan and Citi Private will lend to non-residents at higher down payment requirements. (2) Foreign buyers must structure ownership properly to hedge against US estate tax exposure. (3) FIRPTA requires the buyer's closing agent to withhold 15% of the gross sale price when a foreign owner sells, refunded after the seller files their US tax return.

Do foreign buyers have to pay extra stamp duties in the US?

No. There are no extra stamp duties imposed on foreign buyers in the US, unlike Hong Kong (eliminated in 2024), Singapore (60%), London (2%), Vancouver (20%), Toronto (35%), Sydney (9%), and Spain (proposed 100%). Foreign buyers pay the same transfer taxes as US citizens. Combined transfer taxes (mansion tax, title insurance, attorney fees, transfer fees) in NYC and Miami run 1.5% to 4.5% depending on price, plus ~2.2% mortgage recording tax if financing.

Do I have to pay a brokerage commission when buying a property in the US?

Maybe. While commissions used to always be paid by the seller, 2024-2025 rule changes now require written buyer-broker agreements and the buyer may be required to pay if the seller does not offer to. So far, most NYC and Miami sellers continue to offer to pay the buyer's broker commission. Working with an experienced buyer's agent who has handled international transactions is highly recommended.

Can a foreigner buy a house in the USA with a mortgage?

Yes. Foreign national mortgages are widely available. HSBC, Wells Fargo, and many private banks (JP Morgan, Citi Private) lend to foreigners. Typical HSBC terms: 30% minimum down payment, $3 million maximum loan, $50,000-$100,000 on deposit, and 12 months of reserves required. Local US banks generally won't lend to foreigners without a US credit report. Interest rates run 0.5%-1% higher than rates for domestic buyers.

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

US tax policy is generally favorable to both foreign investors and residents alike when it comes to property ownership. The few real differences: (1) Most NYC co-ops prefer or require primary-residence US-domiciled buyers. Foreigners should focus on condos and condops. (2) Bank underwriters add a small risk premium (often 0.5%) to interest rates for non-residents. (3) FIRPTA withholding applies at sale. None of these are government regulations preventing purchase, just lender and building practices.

Do I need multiple real estate agents to find a property in the US?

No, work with one broker. Unlike London, Paris, or Brazil, the US property market is highly transparent. The Real Estate Board of New York and Florida's MLS systems require brokerages to share their exclusive listings within 24 hours, so a good buyer's broker can show you any apartment on the market. Committing to one broker ensures you get their full attention and access to off-market inventory.

What types of property can I buy as a foreigner?

Foreigners can buy condominiums, condops, single-family homes, multi-family homes, and townhouses anywhere in the US. The exception in NYC is co-operatives, which represent ~70% of Manhattan apartments and generally prohibit foreign ownership unless the buyer's primary income source and bulk of assets are US-based. Foreign buyers should focus on condos and condops in NYC, and condos and houses in Miami (the Miami market is almost entirely condos and houses, so this isn't an issue).

How should I structure the property purchase to minimize taxes?

Two main considerations drive structure: estate-tax exposure (the biggest issue) and home-country tax-treaty benefits. Common protective structures include: (1) Foreign holding corporation owning the property. The corporate shares are not US-situs assets and are not subject to US estate tax. (2) US LLC owned by a foreign corporation ("two-tier" structure), combines limited liability with estate-tax shielding. (3) Irrevocable trust, most flexible for treaty-country investors. Always consult a US tax attorney before signing contracts.

Do I have to worry about US income taxes?

Generally, a buyer who purchases a property to generate rental income will be able to offset rental income with cash expenses (property taxes, maintenance, mortgage interest) and non-cash expenses (27.5-year depreciation). Early years typically create paper losses that carry forward 15 years. Owners often pay zero US income tax on rental income for the first 12 years of ownership. Foreigners must obtain an ITIN (Individual Taxpayer Identification Number) using Form W-7 to file US returns and make the Section 871(d) net-income election. Without this, you will be taxed at 30% of gross rental income with no deductions allowed.

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

Two main costs: (a) transfer taxes of approximately 2% and (b) broker sales commission of 5% to 6%. Two main taxes: (1) FIRPTA withholding, 15% of gross sale price withheld at closing, refunded after filing US return. (2) Capital gains tax, same federal rates as US residents (long-term gain typically 20% federal plus 3.8% net investment income tax). With proper pre-purchase planning via a foreign corporation or other structure, US estate tax can be avoided or hedged. Capital gains in an LLC or individual name follow standard US rates.

What about conducting due diligence and closing the deal?

Critical pre-closing steps: (1) Property inspection by a professional inspector, foundation, roof, plumbing, electrical, signs of damage. (2) Title search to confirm clear ownership and absence of liens. (3) Review of property records, deed, title report, outstanding mortgages or liens. (4) Environmental concerns check, flood zones, industrial proximity. Closing involves signing the purchase agreement (binding), finalizing financing, and attending closing where the deed transfers to your ownership. International buyers can close remotely via Power of Attorney.

What are the requirements for insurance and utilities for foreign buyers?

Insurance: obtain homeowners insurance (required by lenders if financed), title insurance (one-time policy at closing protecting against title defects), and consider liability/umbrella coverage given US litigation culture. Utilities: set up electricity, gas, water, and internet in your name or property-management entity's name promptly after closing. Many condo buildings require tenant insurance proof at lease start. Florida-specific: budget significantly higher property insurance ($200-$500+/month for master assessments) due to post-2022 hurricane and condo-reserve law (SB 4D) impact.

What about US Estate Planning and Taxes for foreign buyers?

This is the single biggest planning issue for foreign owners. A non-US-domiciled person who dies owning US real estate directly is subject to US estate tax of up to 40% on value above just $60,000, versus a $15 million exemption (2026) for US citizens and residents. Common planning structures: foreign holding corporation, US LLC owned by foreign corporation (two-tier), irrevocable trust, or treaty-based direct ownership for treaty countries (UK, France, Germany, Australia). Tax implications also include capital gains, income tax on rental, and annual property tax. Consult both US and home-country tax advisors before purchase.

Successfully buying property in the US as a foreign buyer, what's the bottom line?

Buying US property as a foreign buyer is straightforward when you (1) understand the eligibility, foreigners can buy nearly any property in nearly any state, (2) work with experienced specialists, a buyer's agent who handles international transactions, a real-estate attorney with cross-border experience, and a tax professional familiar with FIRPTA and estate-tax structures, (3) plan tax structure pre-purchase, and (4) verify financing terms early. The US market offers diversification, currency-hedge characteristics, transparent pricing, and favorable tax treatment via depreciation and 1031 exchanges that few other countries match.

Can a foreigner get a mortgage to buy in the US?

Yes. Foreign-national mortgage programs are available, typically requiring 30%-40% down, proof of funds and income, and an ITIN. Many international buyers purchase in cash for speed and negotiating leverage.

What taxes do foreign buyers pay on US real estate?

Foreign owners should plan for FIRPTA withholding on sale, potential U.S. estate-tax exposure on directly held property, and annual property taxes. Ownership structure (personal name, LLC, or trust) should be decided with counsel before purchase.

Manhattan Miami

International Buyers

Can Foreigners Buy Property in the USA?

Yes. There are no restrictions on foreign ownership of U.S. residential real estate. Here is exactly how it works, and how to do it well.

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The Short Answer

Yes. And There Is No Visa or Residency Requirement

Foreign nationals can freely buy, own, and sell residential real estate in the United States. There is no citizenship, visa, or green-card requirement to take title to a U.S. home. You can purchase in cash, or finance with a foreign-national mortgage.

The decisions that matter are not whether you can buy, but how you structure the purchase, for financing, privacy, and tax efficiency. Those choices are best made before you make an offer.

What You Need

The Essentials for an International Purchase

Funds & Financing

Cash purchases are common and fast. Foreign-national mortgages exist, typically 30%-40% down with proof of funds and income.

ITIN & Documentation

An ITIN (Individual Taxpayer Identification Number) and standard KYC documents; no Social Security number or residency needed.

Ownership Structure

Personal name, LLC, or trust, chosen with counsel for privacy, liability, and U.S. estate-tax planning before you offer.

Tax & Legal

Plan for FIRPTA and U.S. Estate Tax

Two items deserve advance planning with a U.S. attorney and tax advisor: FIRPTA (withholding on the eventual sale by a foreign seller) and U.S. estate-tax exposure on directly held property. The right ownership structure can materially change both.

For a deeper treatment, see our U.S. estate tax guide for foreign buyers and the full International Buyer's Guide for NYC & Miami.

Why Manhattan Miami

Foreign-Buyer Specialists in Two Markets

Over 75% of our clients are based outside the United States. We act as exclusive buyer advisors, collecting you on arrival, touring discreetly, negotiating on your behalf, and coordinating attorneys, lenders, and tax advisors. As the seller pays the U.S. commission, our first-class service costs you nothing as the buyer.

We work with translators and have agents fluent across Chinese, Brazilian Portuguese, Spanish, French, Italian, and Korean.

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Tell us your objectives, timing, and home country. We'll outline the right structure and the next step, no obligation, replied to within one business day.

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