Foreigners can legally buy real estate in the United States — with no citizenship, no visa, and no residency requirement. What they cannot do is buy it as if they were U.S. citizens. FIRPTA withholding, estate tax exposure, capital controls, entity structuring, and FinCEN disclosure requirements are the legal realities of every international transaction. This guide explains them all — from first question to closing.
Yes — with no citizenship, visa, or residency requirement. Any foreign national, from any country, can legally purchase real estate in the United States as a buyer. There is no federal law prohibiting foreign ownership of U.S. real property. The legal complexity is not in the purchase itself — it is in what happens when you sell, when you die, when you earn rental income, and how you structure the ownership from day one.
Foreign nationals have purchased U.S. real estate in every price range, from every country, through every conceivable ownership structure. The United States is among the most open real estate markets in the world for foreign buyers. The issues practitioners must address are not "can my client buy" but "how should my client buy, and what will happen at sale and at death if they don't structure it correctly."
There are limited exceptions: some states have enacted restrictions on purchases by nationals of countries designated as "foreign adversaries" (primarily China) near military bases and critical infrastructure. These state-level restrictions are narrow, actively litigated, and do not prohibit purchases broadly — but they require legal counsel in the relevant states. See the State-Level Restrictions section below.
The Foreign Investment in Real Property Tax Act (FIRPTA) is the single most important federal law for foreign nationals in U.S. real estate. It does not affect the purchase — it affects the sale. When a foreign national sells U.S. real property, the buyer is required to withhold a percentage of the gross sales price and remit it to the IRS as a deposit against the seller's potential capital gains tax liability.
The standard FIRPTA withholding rate is 15% of the gross sales price — not the gain, the gross price. On a $1,200,000 sale, that is $180,000 withheld at closing, regardless of what the seller paid for the property. The seller can file for a withholding certificate from the IRS to reduce this amount, but the process takes 90+ days and must be initiated well before the closing date.
Who is subject to FIRPTA? Foreign nationals who are not U.S. tax residents. A foreign national who holds a U.S. green card, or who meets the IRS Substantial Presence Test (generally 183 days or more in the U.S. in the current and prior two years, weighted), is a U.S. tax resident and is NOT subject to FIRPTA withholding. A foreign national who does not meet either test faces the full 15% withholding when selling.
FIRPTA exemptions include:
The practitioner's responsibility: FIRPTA withholding is the buyer's responsibility — not the seller's, not the title company's. If a buyer fails to withhold from a foreign seller and the IRS later determines withholding was required, the buyer faces liability for the unpaid withholding plus interest and penalties. Every buyer's agent working with a foreign seller must confirm FIRPTA status before closing.
Critical planning point: FIRPTA withholding is eliminated when a foreign seller holds through a U.S. LLC or domestic corporation that is the seller of record. Proper entity structuring at the time of purchase — not at the time of sale — is the most effective FIRPTA planning tool. A foreign national who purchases in personal name and structures later loses this opportunity.
The estate tax exposure for foreign nationals holding U.S. real property in personal names is the most expensive and most easily preventable mistake in international real estate. It is also, in our experience at GCRID, the most frequently overlooked.
U.S. citizens and residents: $13.61 million estate tax exemption (2024). The overwhelming majority of estates face no estate tax at all.
Non-resident aliens (foreign nationals): $60,000 exemption. On any U.S. real property holding above this threshold, the estate is subject to U.S. estate tax at rates up to 40%.
A Colombian national who holds a $1.5M Brickell condominium in personal name dies with an estate tax liability of approximately $576,000 — on an asset their heirs may have no immediate way to liquidate to pay the bill. This is not a hypothetical. It is a predictable, measurable outcome of failing to structure correctly at purchase.
| Country | Estate Tax Treaty with U.S. | NRA Exemption | Tax on $2M Property |
|---|---|---|---|
| United Kingdom | Yes (proportionate relief) | Proportionate | Reduced — calculate per treaty |
| Germany | Yes | Proportionate | Reduced — calculate per treaty |
| Canada | Limited (income treaty only) | $60,000 | ~$776,000 |
| Colombia | No | $60,000 | ~$776,000 |
| Mexico | No | $60,000 | ~$776,000 |
| Brazil | No | $60,000 | ~$776,000 |
| Argentina | No | $60,000 | ~$776,000 |
| UAE | No | $60,000 | ~$776,000 |
| India | No | $60,000 | ~$776,000 |
| China | No | $60,000 | ~$776,000 |
| Australia | No (income treaty only) | $60,000 | ~$776,000 |
| South Korea | No | $60,000 | ~$776,000 |
| Nigeria | No | $60,000 | ~$776,000 |
The solution is entity structuring at purchase — specifically, holding U.S. real property through a structure where the direct owner is not a foreign natural person. See the Entity Structuring section below.
The standard recommendation for foreign nationals purchasing U.S. real estate above any meaningful value is to purchase through an entity rather than in personal name. The right entity structure eliminates FIRPTA exposure at sale, removes estate tax exposure, provides asset protection, and creates a clean framework for rental income reporting.
| Structure | FIRPTA at Sale | Estate Tax Protection | Best For |
|---|---|---|---|
| Personal name (no entity) | 15% withheld | No — $60K exemption only | Never recommended for foreign nationals above $60K |
| U.S. LLC (single) | LLC is disregarded — same as personal name for FIRPTA unless election made | Partial — requires proper structure | Not sufficient alone for foreign nationals |
| U.S. LLC owned by foreign holding company | Eliminated (holding company is the seller) | Yes (foreign entity, not individual, holds asset) | Most common — Colombian, Argentine, Brazilian, UAE buyers |
| U.S. C-Corp (domestic) | Eliminated | Yes | Larger portfolios — creates double taxation on dividend distributions |
| Foreign trust owning U.S. LLC | Eliminated | Yes — may also provide succession planning benefits | HNW buyers with complex estate planning needs |
The most common structure for Latin American and Middle Eastern buyers is a U.S. LLC owned by a foreign holding company — typically incorporated in a low-tax jurisdiction (BVI, Cayman, Panama, Uruguay, or Singapore depending on the buyer's country). The LLC takes title to the U.S. property. The foreign holding company owns the LLC. The individual owns the foreign holding company. This structure achieves all three goals: FIRPTA elimination, estate tax protection, and asset protection from the buyer's home country creditors or court orders.
Thin paper structures don't work. The IRS scrutinizes entity structures that lack business substance — entities that exist solely on paper with no independent economic activity. A properly maintained foreign holding company needs genuine substance: a real office or registered agent in its jurisdiction, board meetings, annual filings, and genuine business purpose. Your U.S. real estate attorney and your home-country tax advisor need to coordinate on this at setup.
The Financial Crimes Enforcement Network's Geographic Targeting Orders (GTOs) require all-cash real estate purchases above specified dollar thresholds in covered metropolitan areas to disclose the full beneficial ownership of any legal entity involved in the purchase to the title company.
Current threshold: $300,000 in most covered jurisdictions (Florida counties, Texas metro counties, New York/New Jersey/Connecticut metro area, California counties, Hawaii, Nevada, and others). Title companies in covered areas are required to collect beneficial ownership information — name, address, passport number, and ownership percentage — for every person who owns 25% or more of a purchasing entity. This is a federal regulatory requirement, not a local policy.
For foreign national buyers purchasing through entities — which they should be, for the FIRPTA and estate tax reasons above — FinCEN GTO compliance means having the beneficial ownership documentation organized before the offer is submitted. A transaction that stalls at closing because the title company cannot get UBO documentation from a foreign holding company will create significant problems, including potential forfeiture of earnest money deposits.
Practical steps for GTO-covered purchases: (1) Confirm before the offer whether the county/metro is GTO-covered. (2) Organize LLC operating agreement, foreign holding company certificates, and passport copies for all 25%+ beneficial owners before the offer goes in. (3) Brief the title company on the structure at offer acceptance, not at closing. (4) Allow 2–3 weeks of additional timeline for international document notarization and apostille if foreign entity documents need authentication.
Foreign nationals can obtain mortgage financing in the United States — but the process is more limited and more complex than for U.S. citizens and permanent residents. The majority of foreign national purchases at the higher price points are cash, but mortgage financing is available from certain lenders who specialize in international borrowers.
Who offers foreign national mortgages: Most conventional lenders (Fannie Mae/Freddie Mac conforming products) require U.S. residency. Foreign national mortgage programs are offered by private lenders, international banks with U.S. operations (HSBC, Santander, international private banking divisions), and specialized non-QM lenders. Down payments typically range from 30–40%. Interest rates carry a premium of 0.5–1.5% above comparable U.S.-resident borrower rates.
Documentation requirements for foreign national mortgages are substantially more extensive than for U.S. borrowers. Expect to provide: 2 years of foreign tax returns (translated and notarized), 12 months of foreign bank statements (translated), employment verification or business ownership documentation, passport and visa documentation, and sometimes a letter from a foreign attorney confirming the legal source of funds. Allow 60–90 days for foreign national mortgage processing rather than the standard 30 days.
ITIN borrowers: Foreign nationals with a U.S. Individual Taxpayer Identification Number (ITIN) — available to foreign nationals who have U.S. tax reporting obligations — have access to a broader set of lenders than those without any U.S. tax ID. Foreign buyers who plan to generate U.S. rental income from their property (which creates a U.S. tax filing obligation) should obtain an ITIN at the time of purchase or shortly after.
The most frequently underestimated logistical challenge in international real estate is not the legal structure — it is the wire. Getting capital from a buyer's home country to a U.S. closing account on schedule requires understanding each country's foreign exchange rules and planning accordingly. In some corridors, the buyer's funds are already outside the home country; in others, they must clear a regulatory process that takes weeks.
| Country | Annual Limit / Control | Regulatory Body | Typical Wire Timeline |
|---|---|---|---|
| United States (green card/citizen) | No limit | — | 1–3 business days |
| Canada | No limit | — | 1–3 business days |
| Australia | No limit | AUSTRAC (AML reporting) | 1–3 business days |
| United Kingdom | No limit | FCA (AML reporting) | 1–3 business days |
| UAE | No limit (AED/USD pegged) | CBUAE | 2–5 business days |
| Colombia | DIAN reporting, some limits | Banco de la República | 5–10 business days |
| Brazil | BACEN compliance required | Banco Central do Brasil | 5–10 business days |
| Mexico | SAT reporting required | SAT / Banxico | 5–10 business days |
| India (FEMA/LRS) | $250,000 USD/year per person | Reserve Bank of India | 7–14 business days |
| South Korea | $50,000 USD/year without MOSF approval | Bank of Korea / MOSF | 10–21 business days with approval |
| China (SAFE) | $50,000 USD/year — most restrictive | SAFE | Typically via offshore accounts |
| Argentina (Cepo) | $200 USD/month official — effective ban | BCRA | Wires come from Uruguay/offshore only |
| Nigeria | CBN compliance required for large transfers | Central Bank of Nigeria | 4–8 weeks |
In corridors with significant capital controls (China, Argentina), the buyer's funds are almost never wiring directly from the home country. They are coming from offshore accounts accumulated over years — in Hong Kong, Singapore, Uruguay, or U.S. bank accounts established through prior business or investment activity. Source of funds documentation for these buyers traces through those offshore accumulation points, not from the home country bank.
The U.S. federal government has not enacted a general prohibition on foreign national real estate purchases. However, since 2023, several states have enacted laws restricting or prohibiting purchases by nationals of countries designated as "foreign countries of concern" — primarily China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria — near military bases and critical infrastructure.
States with laws currently in effect or in litigation (as of 2025): Florida (HB 1355), Texas (SB 147), Montana, Louisiana, Virginia, Alabama, Indiana, Utah, and others. The scope, exemptions, and current litigation status vary by state. Most of these laws:
Practitioners advising clients from designated countries on purchases in these states must consult with a real estate attorney who is tracking the current legal status of the specific state law. These laws change through court decisions and legislative amendment.
These laws do NOT apply to: Chinese-Americans who are U.S. citizens or permanent residents, Venezuelan-Americans who are U.S. citizens or TPS holders, or most Cuban-Americans. The restrictions apply specifically to nationals of designated countries who lack U.S. status and are purchasing near restricted zones. A real estate attorney in the relevant state can confirm the current scope.
Before you view your first property, you need: (1) a U.S. real estate attorney who handles international buyer transactions, (2) a CIPS-designated buyer's agent familiar with your corridor, (3) a U.S. CPA or tax advisor who handles foreign national tax issues, and — if your capital originates from outside the U.S. — a tax advisor in your home country who can coordinate. Build this team first. The attorney, not the agent, should drive your entity structure decision before you sign a contract.
Before you make an offer, your entity should be in place. The U.S. LLC needs to be formed, the foreign holding company (if applicable) needs to be incorporated and its relationship to the LLC documented, EIN numbers need to be obtained, and a U.S. bank account needs to be open in the entity's name for receiving rent and paying expenses. This process takes 4–8 weeks. Don't compress it against a closing timeline.
Before you make an offer, organize your source of funds documentation: bank statements for the account from which the wire will originate (12 months minimum), documentation showing how those funds were earned or accumulated, and — for funds in offshore accounts — documentation of the transfer of funds to that offshore account. Title companies will require this. Having it organized early prevents closing delays.
Work with a buyer's agent who understands your corridor and your legal situation. When you are ready to make an offer, your agent submits a purchase contract. Florida and Texas use standard association contract forms; other states use attorney-drafted contracts. Your attorney should review any purchase contract before you execute it — particularly the timeline and contingency provisions, which affect how much time you have for due diligence and financing.
During the inspection period (typically 10–15 days in Florida), you have an independent home inspector evaluate the property's physical condition. Simultaneously, the title company conducts a title search — verifying ownership history, existing liens, and encumbrances. For international buyers, this is also the period to finalize GTO documentation if the purchase is all-cash and in a covered area.
For international wires: initiate the wire from your home country bank (or offshore account) no later than 10–14 business days before the scheduled closing date. International wires can take 5–10 business days to clear U.S. title company trust accounts; your home country bank's compliance review adds additional time. Wires that arrive after the closing date create contractual default risk. Initiate early.
U.S. real estate closings are typically conducted by a title company (not an attorney, in most states). The closing involves signing the deed, settlement statement, and related documents. For international buyers who are not physically present, remote closing via notarization is possible in most states — your attorney can arrange this. The deed is then recorded with the county, and title vests in your entity's name. Congratulations — you own U.S. real estate.
Within 30 days of closing: obtain U.S. homeowner's or landlord's insurance in the entity's name. If renting the property, establish a U.S. bank account for rent deposits and a property manager if you will not self-manage. Obtain an ITIN if you haven't already (required for U.S. tax filing). File your first U.S. tax return for the year of purchase — even if no rental income was earned, the property acquisition is a tax event in some home countries and must be reported there as well.
Rental income taxation. If you rent your U.S. property, that rental income is subject to U.S. federal income tax. Foreign nationals who rent U.S. property have two options: (1) flat 30% withholding on gross rental income, remitted by the tenant or property manager to the IRS; or (2) elect to be treated as a U.S. trade or business and file a Form 1040-NR, reporting net rental income after deductions for mortgage interest, property taxes, depreciation, management fees, insurance, and repairs. The net income election almost always results in lower tax and is almost always worth the cost of a U.S. tax return preparation. Some countries have income tax treaties with the U.S. that reduce or eliminate this withholding for their nationals (the U.S.-Australia and U.S.-South Korea income tax treaties are examples).
Annual entity maintenance. Your U.S. LLC requires annual state filings, registered agent maintenance, and — if it is the subsidiary of a foreign holding company — the foreign corporation must maintain its own filings and registered agent. These are not optional. An LLC that is dissolved for failure to maintain state filings can lose its liability protection and create gaps in your FIRPTA and estate tax planning structures. Budget $500–$1,500/year for entity maintenance, plus accounting fees.
Property taxes. U.S. real property is subject to annual county property taxes. As a foreign national, you are generally not eligible for homestead exemption (which reduces assessed value for Florida primary residents). Your property will be taxed at its full assessed value. In Florida, property taxes average approximately 1–1.5% of assessed value annually.
Future sale planning. When you are ready to sell, notify your U.S. attorney and tax advisor well in advance of listing. A FIRPTA withholding certificate application should be filed with the IRS 90+ days before the anticipated closing date. Your home-country tax advisor should be engaged to determine whether the capital gain must also be reported in your home jurisdiction and what credits or treaty protections apply.
GCRID · Foreign Buyer Guide
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