Foreign Real Estate Investment in the USA
No visa required. FIRPTA, LLC structuring, and financing guidance.
Foreign Purchases
Annual volume 2024
FIRPTA Withholding
On property sales
Visa Required
To buy property
States
Available to invest
Can Foreigners Buy US Real Estate?
Yes - No Visa or Citizenship Required. The United States places no restrictions on foreign nationals purchasing real estate. You can purchase property as a tourist on a B-1/B-2 visa or even without entering the country at all.
Property Types Available
- Single-family homes and condos
- Multi-family rental properties
- Commercial real estate
- Raw land (some restrictions)
- Agricultural land (AFIDA reporting)
No Restrictions From
- Any country of citizenship
- Any visa status (or none)
- Any residency status
- First-time or repeat buyers
State-by-State Investment Guides
Based on NAR data, these states attract the most international property investors.
Florida
No state income tax, strong vacation rental market, Latin American buyer preference.
Florida Guide →California
Highest average price ($1M+), Chinese investor presence, tech worker demand.
California Guide →Texas
No state income tax, growing tech hubs (Austin), Mexican and Asian buyers.
Texas Guide →New York
NYC condos, EB-5 projects, highest prices but strong safe haven appeal.
New York Guide →Nevada
Las Vegas properties, strong LLC protections, California exodus beneficiary.
Nevada Guide →Arizona
Scottsdale, Phoenix, snowbird properties, 55+ communities.
Arizona Guide →The 15% Tax You Must Plan For
FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers to withhold 15% of the gross purchase price when a foreign person sells US real estate.
| Sale Price | Buyer Use | Withholding |
|---|---|---|
| $300,000 or less | Primary residence | 0% (exempt) |
| $300,001 - $1,000,000 | Primary residence | 10% |
| Over $1,000,000 | Any use | 15% |
| Any price | Investment | 15% |
Should You Hold Property in an LLC?
LLC Benefits
- Liability protection
- Privacy (name not on deed)
- Avoid US probate
- Easier US banking
- Professional image
Considerations
- Formation: $500-$2,000
- Annual fees: $100-$800
- Harder to get mortgages
- Additional tax filings
| Factor | Personal | LLC |
|---|---|---|
| Liability Protection | None | Strong |
| Privacy | Name on deed | LLC name only |
| Estate Planning | US probate | Avoid probate |
| Setup Cost | $0 | $500-$2,000 |
Financing Options for Foreign Buyers
42% of foreign buyers purchase all-cash, but financing is available for those who want it.
Foreign National Mortgages
- 30-40% down payment required
- 12-24 months reserves
- Rates 1-2% above conventional
- Income proof from home country
All-Cash Benefits
- Faster closing (2-3 weeks)
- Stronger negotiating position
- No mortgage qualification
- No interest costs
Tax Obligations for Foreign Owners
Rental Income Options
- Option 1: 30% gross withholding
- Option 2: Net income election (usually better)
- File W-8ECI for net treatment
- Deduct expenses and depreciation
Annual Filing Requirements
- Form 1040-NR (US tax return)
- State tax returns (most states)
- FBAR if US accounts exceed $10K
- Form 8938 (FATCA) if applicable
All US property owners pay local property taxes, typically 1-2% of assessed value annually. Foreign owners are treated the same as US citizens.
Can I buy remotely without visiting?
Yes. You can sign documents electronically or through power of attorney. Have a trusted agent conduct inspections on your behalf.
Does owning property help get a US visa?
No. Real estate ownership provides no immigration benefit. However, starting a business using your property (like short-term rentals) might qualify for an E-2 investor visa.
What happens to my property if I die?
Without proper planning, property goes through US probate court - expensive and slow for foreign heirs. Holding property in an LLC with proper operating agreement avoids this.
Do I need a US Social Security Number?
No, but you need an Individual Taxpayer Identification Number (ITIN) for tax purposes. I can help you apply as part of your purchase process.