Many foreigners choose to invest in US real estate because of the market’s stability, transparency, and strong potential for returns. The U.S. offers residential and commercial real estate opportunities, and non-citizens can legally purchase and own property.
Key Takeaways
- You don’t need citizenship or a visa to buy U.S. property.
- Tax rules and investment structures work differently for non-residents.
- Working with qualified professionals helps ensure legal and financial compliance.
How to Get Started
- Choose a Market – Pick a city with strong rental demand or growth potential. Popular options include New York, Miami, Los Angeles, and Houston.
- Work With a Realtor – Connect with a real estate agent who has experience helping international buyers. They’ll help you find properties and complete paperwork.
- Set Up a Legal Entity – Use a U.S.-based LLC or trust to hold your property. This structure can reduce liability and simplify estate planning.
Tax & Legal Considerations
- FIRPTA – The Foreign Investment in Real Property Tax Act requires buyers to withhold 15% of the sale price when a foreign seller sells U.S. property.
- U.S. Taxes – Non-residents must report and pay tax on U.S. rental income. File IRS Form W-8 or W-8ECI to stay compliant.
- Estate Tax – U.S. estate tax applies when a non-resident dies while owning property in the country. Proper planning with legal structures can help reduce this burden.
Financing
- Cash Buyers – Most foreigners pay for properties in full. However, some U.S. banks do offer mortgage loans to foreign nationals, though they usually require larger down payments and charge higher interest rates.
FAQs
Q: Can foreigners own property in the U.S.?
A: Yes. Non-citizens can legally buy residential or commercial real estate in the United States.
Q: Do I have to live in the U.S. to buy property?
A: No. You can buy U.S. property even if you live in another country and don’t have a visa.
