Property Ownership in the US for Foreigners

Foreign investment in U.S. real estate continues to grow, with international buyers purchasing over $56 billion worth of residential property from April 2024 through March 2025. Whether you’re seeking a vacation home, investment property, or planning for future immigration, understanding the legal landscape is critical. This guide covers eligibility requirements, recent regulatory changes, tax implications, and compliance obligations that foreign property owners must navigate.

Can Foreigners Own Property in the United States?

Yes, but with evolving restrictions. Unlike many countries that prohibit or heavily restrict foreign ownership, the United States historically welcomed international real estate investment. However, the legal landscape has shifted dramatically since 2020.

Federal Level: No blanket prohibition exists on foreign ownership of residential real estate. You do not need to be a U.S. citizen, permanent resident, or visa holder to purchase property.

State Level: As of 2025, approximately 28-30 states have enacted restrictions on foreign ownership of land, creating a patchwork of rules that vary significantly by location and nationality.

State-Level Restrictions: The “Countries of Concern” Framework

A growing number of states now restrict or prohibit land ownership by individuals or entities tied to specific nations, typically denominated as “foreign adversaries” or “countries of concern.” These lists commonly include the People’s Republic of China, Russia, Iran, North Korea, Cuba, Syria, and Venezuela.

Florida’s SB 264: The most restrictive state law, Florida’s statute prohibits certain foreign nationals—particularly Chinese citizens domiciled in China and nationals from other “countries of concern”—from purchasing property in Florida, with limited exceptions. The 11th Circuit Court of Appeals upheld enforcement of this law in 2025, confirming states’ authority to impose nationality-based restrictions.

What’s Typically Restricted:

• Agricultural land and farmland (most common restriction)
• Property within specified distances of military installations, critical infrastructure, or government facilities
• In some states, all real property for certain foreign persons

Geographic Scope: States with foreign ownership restrictions include Texas, Arkansas, Louisiana, Mississippi, Alabama, Tennessee, Oklahoma, Montana, North Dakota, South Dakota, and many others. The list continues to expand through state legislative sessions.

CFIUS: Federal Scrutiny of Real Estate Near Sensitive Locations

The Committee on Foreign Investment in the United States (CFIUS) has expanded authority to review foreign purchases or leases of real estate near sensitive facilities under 31 C.F.R. Part 802.

December 2024 Expansion: A final rule effective December 9, 2024, expanded CFIUS’s jurisdiction to cover more installations and clarified review requirements for foreign real estate transactions.

When CFIUS Review May Be Required:

• Property within specified distances of military installations, ports, airports, and other critical infrastructure
• The “covered transaction” thresholds depend on the type of facility and proximity
• Foreign government-owned or controlled entities face stricter scrutiny

Practical Guidance: For typical suburban residential property nowhere near military bases or sensitive facilities, CFIUS is rarely an issue. However, before purchasing property in:

• Proximity to military bases
• Near ports or maritime facilities
• Around certain government installations
• In rural areas near missile sites or testing facilities

Check the Part 802 Geographic Reference Tool maintained by the U.S. Department of the Treasury to determine if CFIUS jurisdiction may apply.

Farmland Ownership: Additional Federal Reporting

The U.S. Department of Agriculture tracks foreign ownership of agricultural land through the Agricultural Foreign Investment Disclosure Act (AFIDA). As of 2022, foreign persons owned approximately 43.4 million acres (3.4% of privately held agricultural land).

If you’re considering farmland or agricultural property, expect:

• Mandatory disclosure reporting to USDA within 90 days of acquisition
• Heightened scrutiny under state laws (many states specifically restrict foreign farmland ownership)
• Potential future restrictions as Congress considers the Farmland Security Act and similar legislation

For residential, commercial, or urban property that is not farmland, AFIDA reporting generally does not apply.

---

Structuring Your Purchase: Individual vs. Entity Ownership

Foreign buyers often face a choice: purchase property in their personal name or through a legal entity such as an LLC or corporation.

Comparison Table

Factor	Individual Ownership	LLC/Corporation
Privacy	Your name appears on public property records	Entity name appears; beneficial owners may be obscured
Liability Protection	Personal assets exposed to property-related lawsuits	Limited liability shield (if properly maintained)
Tax Implications	Direct 1040-NR filing; may qualify for capital gains exclusion	Pass-through or corporate taxation; more complex reporting
Financing	Easier to obtain mortgages	More difficult; many lenders won’t finance LLC purchases
Estate Planning	Subject to probate; may trigger estate tax	Can facilitate succession; ownership transfers without probate
Compliance Burden	Minimal	Annual state filings, registered agent, now BOI reporting

Corporate Transparency Act & Beneficial Ownership Reporting

The regulatory landscape for entity ownership changed dramatically in 2024-2025:

Current Status (2025):

• U.S. companies and U.S. persons: BOI reporting requirements were removed by interim rule
• Foreign reporting companies: Still subject to BOI filing obligations with FinCEN
• Foreign entities registered to do business in the U.S.: Must comply with BOI reporting, with deadlines keyed to March 26, 2025

What This Means: If you purchase U.S. property through a foreign entity (e.g., a company incorporated in your home country) that registers to do business in any U.S. state, you should assume:

• Your beneficial ownership information will be on file with FinCEN
• Failure to report carries civil and criminal penalties
• The rules remain subject to litigation and may change

Recommendation: Entity structures offer legitimate benefits, but transparency requirements have eroded privacy advantages. Consult with both a U.S. attorney and a tax advisor in your home country before deciding on an entity structure, as the optimal choice depends on your nationality, tax residency, estate planning goals, and the specific property location.

---

Financing Considerations

Foreign National Mortgages: Available but more restrictive than loans for U.S. citizens or permanent residents.

Typical Requirements:

• Larger down payment (30-40% common, some lenders require 40-50%)
• Higher interest rates (often 0.5-2% above standard rates)
• Proof of foreign income and assets
• Valid visa or demonstrated ties to the U.S. (for some lenders)
• International credit report or substitute documentation
• Significant cash reserves

ITIN Requirement: Foreign buyers financing property purchases typically need an Individual Taxpayer Identification Number (ITIN) from the IRS. Apply using Form W-7, which requires either:

• Submitting with a U.S. tax return, or
• Processing through an IRS-authorized Certifying Acceptance Agent, or
• Appearing in person at IRS offices or certain U.S. embassies/consulates

All-Cash Purchases: Many foreign buyers opt for all-cash transactions to avoid financing hurdles. However, cash purchases trigger enhanced anti-money laundering scrutiny (discussed below).

---

Anti-Money Laundering & Transparency Requirements

The U.S. government has significantly strengthened tracking of foreign real estate purchases, particularly all-cash transactions using legal entities.

FinCEN’s Real Estate Reporting Expansion

Historic Framework: Since 2016, FinCEN imposed Geographic Targeting Orders (GTOs) requiring title companies to report beneficial ownership information for all-cash residential purchases above certain thresholds in designated metropolitan areas (Miami, New York, Los Angeles, San Francisco, and others).

2024-2026 Transformation: FinCEN adopted a nationwide Residential Real Estate Rule (RRE Rule) that will replace the patchwork GTOs.

Key Dates:

• GTOs remain in effect through February 28, 2026
• RRE Rule takes effect March 1, 2026
• The new rule covers all-cash entity purchases nationwide, not just designated cities

What Foreign Buyers Should Expect:

For purchases through LLCs, trusts, or other legal entities using all-cash or minimal financing:

✓ Title companies and settlement agents must collect detailed beneficial ownership information
✓ You’ll provide government-issued photo ID, proof of address, date of birth
✓ FinCEN receives this information directly; it’s not public but is accessible to law enforcement
✓ The purpose is to combat money laundering, not to restrict legitimate purchases

Compliance Note: Even if you’re using legal, properly-sourced funds, expect more intrusive questions about source of funds, beneficial ownership, and transaction purpose than were common in years past. This is standard anti-money laundering due diligence, not personal to you.

---

Tax Implications for Foreign Property Owners

U.S. tax law imposes specific obligations on foreign owners of U.S. real property, both during ownership and upon sale.

Income Tax on Rental Income

If You Rent the Property:

Foreign owners who earn rental income from U.S. property face a choice:

Option 1: 30% Gross Withholding (Default)

• Flat 30% tax on gross rental receipts
• No deductions for expenses, mortgage interest, depreciation, or property taxes
• Tenants or property managers must withhold and remit to IRS
• This is often an economically poor choice unless the property generates minimal expenses

Option 2: Net Rental Income Election

• Elect to treat rental income as “effectively connected with U.S. trade or business”
• Pay graduated federal income tax rates on net rental income (after deductions)
• Must file Form 1040-NR annual tax return
• Can deduct property taxes, mortgage interest, insurance, repairs, depreciation, property management fees
• This is almost always preferable and must be affirmatively elected

How to Make the Election: Provide your property manager or tenant with IRS Form W-8ECI (Certificate of Foreign Person’s Claim for Exemption). The form must include a valid U.S. tax identification number (ITIN or EIN).

State Income Tax: Many states also impose income tax on rental income from property located in that state. Requirements vary; California, New York, and other high-tax states aggressively pursue nonresident rental income.

FIRPTA: Tax on Sale of Property

The Foreign Investment in Real Property Tax Act (FIRPTA) requires withholding when a foreign person sells U.S. real property.

Withholding Rates:

Sales Price	Buyer’s Residential Use?	Withholding Rate
≤ $300,000	Yes (50% use for 24 months)	0% (exempt)
$300,001 – $1,000,000	Yes (50% use for 24 months)	10%
> $1,000,000	Any use	15%
≤ $1,000,000	No residential use by buyer	15%

Who Withholds: The buyer is responsible for withholding FIRPTA tax and remitting it to the IRS within 20 days of closing. The title company typically handles this as part of closing.

What Happens Next: The withholding is not the final tax—it’s an estimated deposit. You file a U.S. tax return (Form 1040-NR) reporting the actual capital gain, pay any additional tax owed, and claim a refund if you overpaid.

Reducing or Eliminating Withholding: You can apply for a withholding certificate from the IRS before closing if:

• The property is your personal residence and you qualify for the capital gains exclusion
• Your actual tax liability will be less than the standard withholding
• You’re selling at a loss

Application requires Form 8288-B filed well in advance of closing (IRS processing takes 90+ days).

Estate Tax Exposure: Non-U.S. citizens who are not U.S. residents face federal estate tax on U.S.-situated assets, including real property, with only a $60,000 exemption (compared to $13.99 million for U.S. citizens in 2025). For high-net-worth foreign buyers, estate planning strategies are critical.

---

Managing Rental Property: Fair Housing and Tenant Screening Rules

Many foreign investors purchase U.S. property as rental investments. If you plan to rent your property—whether long-term residential tenants or short-term vacation rentals—you become subject to extensive U.S. landlord-tenant law, regardless of where you live.

Federal Fair Housing Act: Core Framework

The Fair Housing Act (42 U.S.C. § 3601 et seq.) makes it unlawful to discriminate in housing transactions based on:

🏠 Race
🏠 Color
🏠 National Origin
🏠 Religion
🏠 Sex (including sexual orientation and gender identity)
🏠 Disability
🏠 Familial Status (presence of children under 18, pregnancy, securing custody of minors)

What This Prohibits:

• Refusing to rent based on protected characteristics
• Setting different rental terms, conditions, or prices
• Advertising preferences or limitations (e.g., “adults only,” “no children,” “Christian household preferred”)
• Falsely denying availability
• Steering tenants to certain properties or neighborhoods
• Asking questions that reveal protected characteristics (more below)
• Creating a hostile housing environment through harassment

Enforcement: The U.S. Department of Housing and Urban Development (HUD), state civil rights commissions, and private lawsuits.

State and Local Protections: Broader Than Federal Law

Many states and municipalities add additional protected classes beyond federal law:

Common State/Local Additions:

• Source of income (e.g., Section 8 vouchers, disability benefits)
• Sexual orientation and gender identity (now generally covered federally as “sex”)
• Marital status
• Military or veteran status
• Age
• Ancestry or ethnicity (distinct from national origin)
• Gender expression

Example: While marital status is not a federally protected class, cities like Cincinnati, Ohio; Madison, Wisconsin; and Washington, D.C. explicitly prohibit marital status discrimination in housing. In those jurisdictions, asking “Are you married?” or “Are you single?” can itself constitute a violation.

Critical Point: You must comply with the most protective law that applies—federal, state, or local. Before accepting rental applications, determine which laws govern your property’s location.

Tenant Screening: What You Can and Cannot Ask

Foreign landlords frequently make costly mistakes by asking questions that are routine or legal in their home countries but prohibited or dangerous in the United States.

✅ ACCEPTABLE Screening Criteria

Financial Qualifications:

• Current and prior addresses with landlord references
• Employer name and contact information
• Monthly gross income and proof of income (pay stubs, bank statements, tax returns)
• Authorization to run credit report and credit score
• Authorization for criminal background check (where legally permitted)

Occupancy:

• Number of occupants who will reside in the property
• Names and ages of all occupants (for legitimate occupancy standards only)

Property-Specific:

• Pet ownership (if you have pet policies)
• Smoking status (if property is non-smoking)
• Vehicle information (if parking is limited)

Income Verification Standard: A common requirement is that monthly rent not exceed 30-33% of gross monthly income (or 3x monthly rent in gross income).

❌ PROHIBITED or HIGH-RISK Questions

Never Ask Applicants:

Question Type	Examples	Why Problematic
Marital Status	“Are you married?” “Are you single?” “Is this your boyfriend or husband?”	Protected in many localities; can be proxy for familial status or sex discrimination
Children/Pregnancy	“Do you have children?” “Are you pregnant?” “Do you plan to have kids?”	Familial status discrimination (federal violation)
National Origin	“Where were you born?” “What country are you from?” “Do you have an accent?”	National origin discrimination (federal violation)
Religion	“What church do you attend?” “Are you Christian/Muslim/Jewish?”	Religious discrimination (federal violation)
Disability/Health	“Do you have any disabilities?” “Are you on medication?” “Why do you need that wheelchair?”	Disability discrimination (federal violation)
Age	“How old are you?” (beyond confirming 18+)	Age discrimination (protected in many states)
Race/Ethnicity	Any question about race, skin color, ethnic background	Race/color discrimination (federal violation)
Sexual Orientation	“Are you gay?” “Do you have a boyfriend or girlfriend?”	Sex discrimination (federal violation)

The Rule: If the question doesn’t relate to the applicant’s ability to pay rent or be a responsible tenant, don’t ask it.

Sexual Harassment in Housing: Extremely High Risk

The U.S. Department of Justice’s Sexual Harassment in Housing Initiative has aggressively prosecuted landlords who engage in sexual harassment of tenants or applicants under the Fair Housing Act.

What Constitutes Sexual Harassment:

• Asking about relationship status or dating availability
• Making comments about physical appearance or attractiveness
• Requesting dates, sexual contact, or relationships in exchange for housing or favorable terms
• Unwanted touching, sexual advances, or propositions
• Sending sexually suggestive messages or images
• “Checking in” excessively or visiting the property without legitimate business purpose

Pattern Recognition: DOJ cases often begin with seemingly “innocent” personal questions:

• “Are you single?”
• “Do you have a boyfriend?”
• “You’re very attractive—are you seeing anyone?”

These questions, in context, can establish a pattern of sexual harassment when followed by propositions, requests for dates, or conditioning rental decisions on sexual attention.

Practical Compliance for Foreign Landlords

Best Practices:

1. Use a Written Application: Standardize your rental application to include only legally permissible questions about income, employment, rental history, and references.
2. Objective Screening Criteria: Establish written criteria (e.g., “income must be 3x rent, credit score above 600, no evictions in past 5 years”) and apply them identically to all applicants.
3. Hire a Professional Property Manager: If you’re unfamiliar with U.S. fair housing law or concerned about compliance, engaging a licensed property manager is the best protection. They handle tenant screening, applications, and legal compliance.
4. Training: If you self-manage, complete fair housing training. Many state realtor associations and HUD offer free online courses.
5. Document Everything: Keep records of all applications received, why each was accepted or rejected, and apply your screening criteria consistently.
6. Legal Review: Have a local real estate attorney review your rental application, lease agreement, and screening policies before accepting your first application.

Resources:

• HUD Fair Housing Information: http://www.hud.gov/program_offices/fair_housing_equal_opp
• State civil rights commissions
• Local landlord associations

Short-Term Rentals: Additional Regulations

If you’re considering Airbnb, VRBO, or other short-term rentals, be aware that most cities heavily regulate this activity:

• Registration or licensing requirements
• Occupancy limits and safety inspections
• Prohibition in certain zones or building types
• Hotel/transient occupancy taxes
• Owner-occupancy requirements (some cities require the owner to live on-site)

Short-term rental regulations are highly local. Research the specific city and county rules before assuming you can operate an Airbnb. Violations can result in daily fines, forced closure, and difficulty selling the property.

---

Immigration Connections: EB-5 and Investor Visas

Some foreign buyers hope real estate purchases will support U.S. immigration applications. It’s important to understand what works and what doesn’t.

Real Estate Purchase ≠ Immigration Benefit

Simply buying residential property does not:

• Grant you any visa or immigration status
• Provide a pathway to a green card
• Give you the right to live or work in the United States
• Count toward EB-5 or other investor visa requirements

EB-5 Immigrant Investor Program: Updated Requirements

The EB-5 program allows foreign investors to obtain green cards by making qualified investments in U.S. commercial enterprises that create jobs.

Current Investment Amounts (2025):

• $800,000: Targeted Employment Area (TEA) investment—rural areas, high unemployment areas, or designated infrastructure projects
• $1,050,000: Standard investment in non-TEA areas

Key Requirements:

• Must invest in a new commercial enterprise (not personal real estate)
• Investment must create or preserve 10 full-time jobs for U.S. workers
• Investment must be “at risk” (no guaranteed returns)
• Typically structured through EB-5 Regional Centers

Residential Real Estate Doesn’t Qualify: Buying a house, condo, or even rental property for passive investment does not meet EB-5 requirements. However, large-scale real estate development projects (hotels, apartment buildings, commercial developments) structured through Regional Centers can qualify if they meet job creation thresholds.

Political Volatility: There has been policy discussion about replacing EB-5 with a “$5 million gold card” investor visa program offering faster processing and different requirements. As of 2025, this remains speculative. Investors considering EB-5 should verify current program status and congressional reauthorization before committing funds.

Recommendation: If immigration is a primary goal, consult with an immigration attorney before purchasing property. Real estate investments can be part of a broader strategy, but cannot substitute for proper EB-5 or other visa programs.

---

Practical Compliance Checklist

Before purchasing or renting U.S. property as a foreign national, verify:

Before You Purchase

Compliance Item	What to Check	Resources
State Foreign Ownership Laws	Does the state restrict foreign ownership? Does your nationality fall under “country of concern” restrictions?	State attorney general offices, local real estate attorney
CFIUS Jurisdiction	Is property near military installations, ports, or critical infrastructure?	Treasury.gov Part 802 Geographic Tool
Entity Structure Tax Impact	LLC vs. personal ownership—implications in both U.S. and home country	U.S. tax attorney + home country tax advisor
BOI Reporting Obligations	If using entity, does it qualify as foreign reporting company?	FinCEN.gov/BOI
ITIN Application	If financing or will have rental income, obtain ITIN before closing	IRS Form W-7
Title Insurance	Confirm title company will handle FIRPTA withholding and FinCEN reporting	Title company, closing attorney

Before You Rent the Property

Compliance Item	What to Check	Resources
Fair Housing Laws	Federal + state + local protected classes and requirements	HUD.gov, state civil rights commission, local landlord association
Rental Application	Legal review of application and screening criteria	Local real estate attorney, property manager
Landlord-Tenant Law	State-specific security deposit, notice, eviction, and habitability requirements	State attorney general office, landlord-tenant handbook
Rental Income Tax Election	File Form W-8ECI to avoid 30% gross withholding; prepare for 1040-NR filing	Tax attorney, CPA specializing in nonresident taxation
Liability Insurance	Landlord liability policy (not homeowner’s insurance)	Insurance broker specializing in rental properties
Short-Term Rental Permits	If considering Airbnb/VRBO, check city licensing and zoning restrictions	City planning/zoning department, STR-specific attorney

---

Frequently Asked Questions

Can I get a U.S. mortgage as a foreign national without a Social Security number?

Yes. You’ll need an ITIN (Individual Taxpayer Identification Number) instead of a Social Security number. Apply for an ITIN using IRS Form W-7 before applying for a mortgage. Expect to provide extensive documentation of foreign income and assets, make a larger down payment (typically 30-40%), and pay higher interest rates than U.S. citizens or permanent residents would receive.

If I own property through an LLC, am I protected from all lawsuits?

No. An LLC provides limited liability protection, meaning creditors generally cannot reach your personal assets for debts of the LLC. However, this protection has limits: you can still be held personally liable for your own negligent or wrongful acts, if you personally guarantee a loan, if you fail to maintain the LLC properly (“piercing the corporate veil”), or in certain other circumstances. An LLC is a useful tool but not a complete liability shield. Proper insurance is equally important.

Do I need to report my U.S. property to my home country’s tax authorities?

Usually yes, but requirements vary by country. Many countries tax worldwide income, including U.S. rental income and capital gains from U.S. property sales. Some countries also require disclosure of foreign assets. You may be entitled to foreign tax credits for U.S. taxes paid, preventing double taxation. Consult a tax advisor in your home country before purchasing U.S. property to understand your home country reporting and tax obligations.

Can I rent my property on Airbnb without any special permits?

Generally no. Most cities now regulate short-term rentals and require registration, licensing, or permits. Requirements vary significantly: some cities ban short-term rentals entirely, some allow them only in certain zones, some require the owner to live on-site, and some impose caps on the number of days per year you can rent. Additionally, you must collect and remit transient occupancy taxes (hotel taxes). Failure to comply can result in daily fines and forced shutdown. Check your city’s specific short-term rental ordinances before advertising on any platform.

What happens if I don’t pay the FIRPTA withholding tax when I sell?

Both the buyer and the seller can be held liable. If you’re the seller and you’re a foreign person, you’re ultimately responsible for the tax on your capital gain. If the buyer fails to withhold as required, the IRS can pursue the buyer for the unpaid withholding tax, plus penalties and interest. This is why buyers typically insist on compliance and title companies routinely handle FIRPTA withholding at closing. If you qualify for an exemption or reduced withholding, apply for a withholding certificate from the IRS well before closing.

Am I allowed to refuse to rent to someone because they don’t speak English well?

No, this would constitute national origin discrimination under the Fair Housing Act. You can require that tenants be able to communicate sufficiently to understand the lease terms and responsibilities, and you may use a professional interpreter if needed, but you cannot refuse to rent based on English language proficiency or accent. Communication challenges can be addressed through written translations of the lease, use of interpreters, or engagement of bilingual property managers—but not by excluding applicants based on national origin.

If I’m buying property in a state with “country of concern” restrictions, can I structure around them using a U.S. citizen partner?

Potentially, but this is legally and practically risky. Many state laws include anti-circumvention provisions that prohibit using intermediaries, agents, or straw purchasers to evade foreign ownership restrictions. If authorities determine that a U.S. citizen is holding property on behalf of a prohibited foreign person, the transaction may be unwound, penalties imposed, and the property potentially forfeited. If you face restrictions in your desired location, consult with a real estate attorney licensed in that state to explore legitimate alternatives (such as purchasing in a different location or through permitted structures), rather than attempting to circumvent the restrictions.

Do I need a U.S. bank account to buy property?

Not absolutely required but highly recommended. Most title companies and escrow agents prefer to receive funds from U.S. bank accounts to facilitate closing. International wire transfers for large sums can trigger delays, enhanced scrutiny, and additional documentation requirements. Opening a U.S. bank account as a foreign national is possible but requires: passport, proof of foreign address, ITIN or foreign tax ID, and potentially a U.S. address (even if temporary). Some banks are more accommodating of foreign nationals than others; consider banks with international departments or those that specialize in serving foreign investors.

Can I deduct U.S. property taxes and mortgage interest on my home country tax return?

This depends entirely on your home country’s tax law. Many countries allow deductions for foreign real estate expenses when calculating taxable income, but the rules vary significantly. Additionally, if you claim deductions in your home country and also claim them in the U.S., tax treaty provisions may limit double benefits. This is a complex area requiring consultation with tax professionals in both jurisdictions.

What happens to my U.S. property if I die? Can my heirs inherit it?

Yes, your heirs can inherit your U.S. property, but the estate may face U.S. estate tax. For non-U.S. citizens who are not U.S. residents, the federal estate tax exemption is only $60,000 (compared to $13.99 million for U.S. citizens in 2025). This means most valuable properties will trigger significant estate tax liability. Estate planning strategies such as irrevocable trusts, limited partnerships, or life insurance can help mitigate this exposure. If estate planning is important to you, consult with an estate planning attorney who specializes in cross-border estates before purchasing property, not after.

How do I handle property management if I live abroad full-time?

The most practical solution is hiring a licensed property manager in the property’s location. A good property manager handles: tenant screening and placement, rent collection, maintenance and repairs, lease enforcement, evictions if necessary, and compliance with local landlord-tenant law. Management fees typically range from 8-12% of monthly rent. This is often essential for foreign owners because effective property management requires local knowledge, rapid response to issues, and understanding of state-specific legal requirements. Attempting to self-manage remotely often leads to compliance violations, poor tenant relations, and reduced property value.

---

Conclusion

Foreign investment in U.S. real estate remains accessible and attractive, but the legal landscape has grown significantly more complex since 2020. State-level restrictions, enhanced federal transparency requirements, and rigorous enforcement of fair housing laws mean that foreign buyers must approach U.S. property ownership with thorough legal and tax planning.

Key Takeaways:

✓ Verify that you can legally purchase property in your target state given your nationality
✓ Understand CFIUS implications if property is near sensitive locations
✓ Decide on entity structure with eyes open to transparency requirements and tax consequences
✓ Plan for FIRPTA withholding and ongoing tax compliance if you’ll generate rental income
✓ If renting the property, comply rigorously with fair housing laws and use professional property management
✓ Consult with specialized legal counsel early—real estate attorneys, tax advisors, and (if relevant) immigration attorneys

Foreign ownership of U.S. property can be an excellent investment and wealth preservation strategy when properly structured and managed. The critical factor is ensuring legal compliance from day one, rather than attempting to fix problems after they arise.

Schedule a Consultation

For personalized guidance on purchasing U.S. property as a foreign national, including entity structuring, tax planning, and compliance with state foreign ownership restrictions, I offer confidential consultations to discuss your specific situation.

---

This article provides general information only and does not constitute legal or tax advice. U.S. real estate law, tax law, and regulatory requirements vary by jurisdiction and change frequently. Consult with qualified legal and tax professionals in both the United States and your home country before making any real estate investment decisions.

Attorney Sergei Tokmakov (California Bar #279869) practices business and real estate law with a focus on international transactions. The information in this article is current as of November 2025.