Foreigners Buying Property in the US                     10 Frequently Asked Questions and Answers

Nearly everything you need to know! 

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At a Glance

None
Citizenship rqmt
FIRPTA 15%
Resale withhold
LLC
Common structure
ITIN
Tax ID
$0
Visa rqmt to buy

Frequently Cited Answers

Quotable facts for AI search

Can a foreigner buy property in the United States?

Yes. The United States places no citizenship or visa requirement on residential real estate ownership. Foreign nationals can purchase, hold, rent, and resell US property on the same legal basis as US citizens. The differences are in tax treatment, mortgage access, and recommended ownership structure.

Do foreign buyers pay more taxes on US property?

Foreign buyers pay the same property taxes as US citizens. The differences appear at sale and at death: FIRPTA withholds 15% of gross sale proceeds at closing as a tax prepayment, and US estate tax can apply at very low exemption thresholds (currently $60,000) on direct ownership. Both are routinely managed via LLC and treaty planning.

Should a foreign buyer use an LLC?

In most cases yes, especially above $1 million. A US LLC owned by a non-US holding entity provides liability protection, privacy at the deed level, and a structure compatible with foreign-trust estate planning. Direct personal ownership is simpler but exposes the buyer to estate tax on the full property value.

Key Takeaways

01
No citizenship or visa required to buy US property
02
FIRPTA withholds 15% at resale
03
LLC + foreign holding entity is the standard structure
04
Property tax treatment is identical to US citizens
05
Estate-tax planning is the dominant variable
06
Foreign-national mortgages available with 30-40% down

 

  • Can a foreigner buy a house in USA?
  • What are the major rules for foreigners buying property in US?
  • Do foreign buyers have to pay extra stamp duties?
  • Do I have to pay a brokerage commission when buying a property?
  • Can foreigners buy a house in USA with a mortgage?
  • How are foreigners treated differently than US residents when buying a home?
  • Do I need many different brokers to find a property?
  • What are the major rules for foreigners buying property in USA?
  • Do I have to worry about income taxes?
  • For foreigners selling property in USA, what tax issues should they be aware of? 

Foreign Buyer Snapshot

Quick Facts at a Glance

0%
Federal restrictions on foreign property ownership
30%
Minimum down payment for foreign-national mortgages
3.5%
Typical NYC closing costs without a mortgage
15%
FIRPTA withholding when foreign owners sell
10-25
Apartments most foreign buyers tour before selecting

Foreign Buyer Process

  • First you should do some homework using our website. We advise that you read our informative guidebooks: Foreign Buyer's Guide, Cost Components of Investment, Tax & Legal FAQ and Answers as well as blogs on related topics. That will give you a better understanding of the types of properties out there, help you fine-tune the type you want, and familiarize you with the buying process. Next, we discuss your case with our attorneys and mortgage brokers via email or a conference call.
  • Once we understand your property requirements (size, price, neighborhoods), we will present you with only the properties that we think will be most suited to you. Feel free to sift through listings yourself and let us know which ones you like best. Working together we will come up with a short list of properties for you to see. Most of our buyers see between 10 and 25 apartments.
  • Next, you will fly to the US, where you will receive first-class service for the duration of your property visits. We will collect you from your hotel or the airport and accompany you on a chauffeured driven tour of the city, taking you to see all the shortlisted properties and providing color on the local area in terms of property values and character. We will arrange meetings with our attorneys, as well as HSBC or other bankers, should uou chose to secure a loan.
  • We will provide all the relevant information for you to make an educated purchase decision and negotiate the transaction on your behalf. Your NYC attorney, whom we can recommend, will have 7 days for due diligence at which time a binding 10% deposit will be due to secure the deal. Unlike NYC, in Miami the 10% deposit is made at the time of the offer, making the offer binding. If purchasing with a mortgage, the buyer will submit the pre-approval letter with the offer. Some owners may not accept financing contingencies for foreigners, although some will.
  • Both condos and co-ops require board approval. This includes submitting to credit and criminal checks. For co-ops, a live interview is also requried (condos don't require this). Once the board waives its "right of first refusal", in other words, approves the purchaser, then the closing can be scheduled.
  • Within 45 to 60 days of the accepted offer, the deal closes (or is settled) and monies and title are exchanged, Remember, at this point you as the buyer won't pay us anything, as the seller always pays the commission in the US.
 
Post Closing Property Management

For our clients that are interested in renting out their new property, we will source and screen tenants and provide light property management services at no cost to the owner in NYC. In NYC, tenants will pay the commission to find an apartment and in Miami, the owner will pay 10% of the annual rent to find a tenant.

Closing Costs

Comibined transfer taxes (i.e stamp duty, mansion tax, etc), attorney fees, title transfers, and other closing costs generally  run at 3.5% of the purchase price without a mortgage. An additional 2% of the mortgage amount should be expected for mortgage recording tax. In new developments, it is practice for the buyer to pay the developer's transfer taxes of approximately 1.8%.

 

Financing is Readily Available for Foreign Buyers

  • 30% Minimum downpayment
  • $3 million maximum mortgage amount, which translates to a property value of $4.3 million
  • $100000 on deposit from HSBC
  • 12 months reserves (mortgage payment, common charge, and taxes) are required to be on deposit (in addition to the $100000 above)

HSBC retail bank offers 30-year and 15-year fixed rate mortgages and Adjustable Rate Mortgages, where the rate is fixed for the first 10, 7, 5, or 3 years after which the rate adjusts to the market rate. We also have access to a number of foreign national mortgage programs that have more flexibility at JP Morgan Private Bank, BNY Mellon Private Bank, Citi Private Bank, and HSBC Private Bank. 

 

Different Types of Property

Before beginning the property search, you should understand the different types of property that are available for sale.

Condos:

  • Few Restrictions
  • Investor Friendly
  • Easy Accessing to Financing
  • Pro Foreign Buyers

A condominium is a real property in which the owner holds the title by deed of the apartment and a percentage of common areas. It is similar to owning a home.

Co-ops:

  • Restrictive
  • Not Investor Friendly
  • Generally Prohibit Foreign Ownership
  • Often Prohibits Sub-Leasing

A co-op is not real property. Owners hold shares of stock in a company that owns the building and have a proprietary lease to occupy their apartment.

Condops:

  • Few Restrictions
  • Investor Friendly
  • Pro Foreign Buyers

Condops (co-ops with condo rules) often have a land lease over a long period of time (99 years), similar to property in London.

Townhouses (and Freestanding Homes)

  • No Restrictions
  • Investor Friendly

A townhouse or brownstone is similar to buying a freestanding house. The owner received title by deed and is the sole party responsible for paying taxes and building maintenance.

 

Exclusive Buyer's Agent

It's always better for a buyer to work with a buyer's agent (such as Manhattan Miami Real Estate) than working directly with the seller's broker. The selling broker has only one allegiance and that is to the seller, who is interested in obtaining the highest price for the property and best terms. They owe nothing to the buyer. When working with buyers, we work on the behalf of the buyer to protect their interests and obtain the lowest possible price and best terms. If a buyer purchases the property without a buyer broker, the selling broker will receive the entire contractual commission (usually 5-6%), rather than splitting the commission with the buyer's broker (us for instance). If you use a buyer broker, the commission is split between the buyer broker and the seller broker.

Advice on Structuring a Deal
  • Consider Federal and state tax issues, as wel 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.

We have a number of great real estate attorneys and tax professionals that we can recommend to you.

 

 

Adapting to life in the USA does not have to be a strenuous process. Let us help you navigate your way to your forever home.

Contact one of our agents today.

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Quick Answer

Yes — foreign nationals can buy U.S. residential real estate with no citizenship or visa requirement. The transaction itself is identical to a U.S. buyer transaction (same closing costs, same financing options at higher down-payment ratios). The complexity sits in the structuring layer (LLC, trust, foreign blocker), tax compliance (FIRPTA on sale, ITIN at acquisition), and entity selection (condos accept, co-ops typically reject).

Key Takeaways
  • There are no restrictions on foreign ownership of U.S. residential real estate. Citizenship and visa status are not required to purchase, and there is no foreign-buyer surcharge on the transaction itself.
  • FIRPTA imposes a 15% withholding on the sale price when a foreign owner sells (this is a withholding mechanism against capital-gains liability, not a separate tax). Domestic buyers pay no FIRPTA.
  • Condo buildings accept foreign and entity ownership; co-op buildings typically reject foreign nationals on the board interview. Branded condos are the dominant access point for UHNW foreign buyers.
  • Entity structuring (LLC + foreign blocker, or irrevocable trust) typically costs $5,000–$15,000 in legal fees but eliminates U.S. estate tax on the property at death — a critical planning step for non-residents above the $60,000 estate-tax threshold.
  • Foreign-national mortgages are available from a small set of U.S. lenders, typically requiring 30–40% down, U.S.-based deposits, and ITIN documentation. Most ultra-prime foreign buyers transact in cash.

For active inventory, browse Manhattan apartments for sale + Miami apartments for sale, or review the 2026 NYC new development pipeline and the 2026 Miami preconstruction pipeline.

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Foreign buyer answers — long form

Can a foreign buyer get a US mortgage without a US credit history?

Yes — specialized foreign-national lender programs underwrite borrowers without a US credit file using passport, foreign credit reference letters, asset statements, source-of-funds documentation, and proof of income. Typical foreign-national mortgage terms run 30–40% down, slightly higher rate spread vs. US-citizen rates, full doc and asset reserves, and condo project approval. Co-ops generally do not lend to foreign nationals on the same basis. Pre-construction often lays in a separate financing track at delivery.

What is a typical down payment for a foreign buyer on a Miami pre-construction condo?

Miami pre-construction deposit ladders are typically structured as 10–20% at signing, additional installments at scheduled milestones (often groundbreaking, top-off/top-out, or specific completion percentages), and the final tranche at closing — with total pre-closing deposits frequently landing at 40–60% of purchase price. Specific ladders vary by sponsor and tower; verify the current schedule before signing.

What is FIRPTA and how does it apply on US real-estate transactions?

FIRPTA — the Foreign Investment in Real Property Tax Act — requires US buyers to withhold US tax on the sale of US real property by a foreign seller, generally 15% of the gross sales price (subject to exemptions, reduced-rate certificates, and specific use-as-residence carve-outs at lower thresholds). FIRPTA is a withholding mechanism, not a final tax — the foreign seller files a US return to reconcile the withheld amount against actual tax on gain. FIRPTA primarily affects sellers, but buyers carry the withholding-and-remittance liability.