Your 2025 Guide to Buying Property in the U.S. as a Foreigner: Legal Steps, Financing, and Tax Tips

For many international investors and aspiring homeowners, owning a piece of the American dream is more accessible than you might think. Whether you’re eyeing a luxury condo in Miami, a rental home in Texas, or a commercial space in California, the U.S. real estate market remains open to foreigners—with the right knowledge and planning.

This guide outlines everything non-U.S. citizens need to know to confidently buy property in the United States, from legal permissions and financing options to tax obligations and closing procedures.

Can Foreigners Buy Property in the U.S.?

Yes, absolutely. There are no federal laws restricting foreigners from purchasing real estate in the U.S.—including homes, land, and commercial buildings. However, some individual states may impose specific restrictions, especially concerning agricultural land or properties near sensitive sites like military bases.

Legal Requirements and Documentation

To secure property in the U.S., foreign buyers will typically need to provide:

• Proof of identity (passport, government-issued ID)

• Proof of address and residency status

• Proof of income and affordability (tax returns, pay stubs, debt documentation)

If financing is involved, expect additional paperwork. It’s also recommended to work with a local real estate attorney to navigate any state-specific regulations.

Financing Options for Foreign Buyers

Obtaining a mortgage without U.S. residency or credit history is possible but comes with challenges. Here are your options:

1. Cash Purchases

The simplest route—no need for a credit score, no interest rates, and faster closing.

2. Foreign National Mortgage Programs

Tailored for non-residents, these programs don’t require a U.S. Social Security number or credit score. Instead, international buyers can submit home-country credit reports or bank statements to verify financial stability.

3. FHA and FNMA Loans

Permanent residents and some work visa holders (e.g., H1B, L1, E2) may qualify for loans backed by U.S. agencies like Fannie Mae and the FHA—offering competitive terms, but requiring residency documentation and verifiable U.S. income.

Tax Implications for Foreign Owners

U.S. tax laws apply to all property owners—citizens or not. Here’s what you need to plan for:

• Property Taxes: Owed annually based on property value; rates vary by state and city.

• Capital Gains Taxes: Profit from selling property is taxable. Long-term ownership (12+ months) benefits from lower rates (15%–20%). Short-term sales may be taxed up to 40.8%.

• FIRPTA Withholding: When a foreign seller disposes of U.S. real estate, a 15% tax is withheld from the sale price as a prepayment toward possible gains taxes.

• Estate & Gift Taxes: Non-resident estate exemptions are just $60,000 (compared to $13.6M for citizens), with up to 40% federal estate tax. Gifting property may also trigger tax filing obligations.

What Can Foreigners Buy?

There are virtually no limits on the types of property foreigners can purchase:

• Residential Homes: Including single-family houses, condos, and co-ops.

• Commercial Real Estate: From retail stores to multi-unit buildings.

• Land: With added scrutiny for agricultural use or proximity to military or ecological zones.

How to Buy Property in the U.S. – Step-by-Step

1. Set Your Budget & Explore Financing
   Determine whether you’ll buy with cash or through financing. Explore mortgage options early and be ready for higher down payments and rates.

2. Pick Your Location
   Florida, California, and Texas remain top picks for international buyers. Evaluate neighborhoods for lifestyle needs or investment growth potential.

3. Hire a Real Estate Agent
   A skilled agent helps you navigate listings, paperwork, and negotiations—often at no direct cost to you, as seller pays the commission.

4. Make an Offer
   Once you’ve found your property, submit a competitive offer with pre-approval documentation. A signed contract will follow, including terms and contingencies.

5. Request a Title Report
   This ensures the property is legally clear of ownership disputes or liens—a critical step before closing.

6. Get a Home Inspection
   Identify any hidden issues. This may give you leverage to renegotiate the deal or request repairs.

7. Close the Deal
   Finalize legal paperwork, pay the deposit and closing costs, and transfer ownership. U.S. property law typically requires an escrow process for added security.

Tips for a Smooth International Property Purchase

• Use a Global Money Transfer Service: Apps like Instarem help avoid costly bank exchange rates and hidden fees when transferring large sums.

• Consult Tax Experts: A cross-border financial advisor can help you avoid unexpected costs and ensure legal compliance.

• Know Your Credit Score: Even as a non-resident, lenders may consider international credit reports. Avoid new debt while seeking financing.

Final Thoughts

Yes, you can buy real estate in the U.S. as a foreigner—without residency, a visa, or citizenship. With strategic planning, local support, and financial clarity, owning property in the U.S. is an achievable goal whether you’re looking for a vacation home, investment asset, or long-term retreat.

For seamless international transfers and better rates, platforms like Instarem can help you manage your money across borders—ensuring your dream of U.S. homeownership stays efficient and cost-effective.

FAQs

• Can foreigners buy U.S. property? Yes, there are no federal restrictions.

• Does ownership grant residency? No, property ownership does not equal U.S. residency.

• Can I get a Green Card by buying a home? Not directly. Only specific investment programs like EB-5 may apply.