United States – Buying Property

Can foreign nationals legally buy and own property in the United States?

In short, yes: non-US citizens may acquire any type of property in America with full ownership rights. That ownership is not conditional on immigration status, and the buyer need not be physically present in the country. This stands in contrast to nations such as New Zealand, which bars most non-residents from purchasing existing homes, or Thailand, where foreign nationals are forbidden from owning land outright. The US federal government has no blanket prohibition of this kind.

At the national level, no overarching ban on foreign ownership of residential real estate exists. You need not hold US citizenship, a green card, or any kind of visa. No special permits are required. That said, the legislative environment at the state level has been shifting considerably in recent years.

Foreign land ownership has become a prominent political and legal issue; at least 22 states have passed laws addressing it in some form. Such legislation may target foreign governments, foreign-controlled businesses, and individual foreign citizens alike. The most frequently seen restrictions concern land that carries military or political sensitivity, as well as agricultural holdings.

As of 2025, roughly 28 to 30 states have adopted some form of foreign land ownership restriction, producing a complex and geographically uneven set of rules. An increasing number of these states prohibit or limit ownership by individuals or entities linked to specific nations — typically those designated as “foreign adversaries” — a category that most commonly includes the People’s Republic of China, Russia, Iran, North Korea, Cuba, Syria, and Venezuela.

A final rule that took effect in December 2024 broadened the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) to encompass additional military installations, clarifying when foreign real estate transactions require review. Properties falling within defined distances of military bases, ports, airports, and other critical infrastructure are within scope. Federal courts in several jurisdictions have found that state-level foreign ownership restrictions may be preempted by CFIUS statutes (50 U.S.C. § 4565), introducing further legal uncertainty for affected buyers.

If you do not hold a Social Security number, you will need to obtain an Individual Taxpayer Identification Number (ITIN) in order to meet your US tax obligations as a property owner. The IRS provides guidance on the application process at irs.gov. Given the pace at which laws are evolving, always seek advice from a qualified attorney in the specific state where you intend to purchase before proceeding.

What are average property prices in the United States, and how do they vary by region?

The Zillow Home Value Index places the average US home value at $360,727, reflecting a 0.1% increase over the prior year as of 2025. The average sales price for newly sold homes reached $534,000 in Q4 2025, according to the US Census Bureau and the Department of Housing and Urban Development. These national figures, however, conceal striking differences from one region to another across the country’s 50 states.

California records the highest median sale price at $825,000, a figure driven by intense demand in coastal urban centres and a chronic shortage of new housing supply. Cities such as San Jose and San Francisco consistently rank among the least affordable US housing markets, a situation compounded by restrictive zoning policies and years of undersupply.

At the more affordable end of the spectrum, states including Ohio ($240,000), Indiana ($260,000), and Mississippi ($266,000) continue to offer some of the lowest entry prices in the country. The South and Midwest broadly represent the most accessible markets for buyers on tighter budgets, while the Northeast and Pacific Coast carry the steepest price premiums. Price per square foot also varies dramatically by geography: in New England, half of new speculative homes begun in 2024 exceeded $282 per square foot, while in the East South Central division, the median stood at just $133 — the most affordable figure in the nation.

These numbers are indicative and subject to change. For up-to-date listings and market data, consult authoritative portals such as Zillow, Redfin, and Realtor.com, as well as the National Association of Realtors (NAR).

Where are the most popular locations to buy property in the United States?

Based on the NAR’s 2025 Profile of International Transactions (covering April 2024 to March 2025), Florida held the top position for foreign buyers for the fifteenth year running, accounting for 21% of all international purchases. Miami alone recorded $3.1 billion in international transactions during 2024–2025, with 71% of luxury condo purchases completed in cash. The city’s standing as a financial and lifestyle hub draws high-net-worth buyers from Latin America, Europe, and beyond.

Florida (Miami, Orlando, Tampa): Florida’s appeal to international buyers rests on several pillars: the absence of a state income tax, a warm year-round climate, well-developed expat and international communities, and strong demand for short-term rentals. Orlando benefits from entrenched tourism infrastructure and dependable rental yields; Tampa has delivered robust economic and population growth in recent years.

New York (New York City): New York City occupies a singular position among the world’s prestige real estate markets. Manhattan condominiums and Brooklyn brownstones attract purchasers seeking a globally recognised address, though values are among the highest in the entire country. The market offers deep liquidity and long-term capital preservation for those who can meet the price of entry.

Texas (Austin, Dallas, Houston): Texas levies no state income tax and has experienced swift population expansion over the past decade, fuelled by technology industry migration and corporate relocations from higher-cost states. Austin in particular became a focal point for technology sector buyers, though its market has moderated from the extraordinary peaks of the pandemic era. Dallas and Houston offer more accessible entry prices alongside strong underlying rental demand.

California (Los Angeles, San Diego): Despite elevated costs, California’s coastal cities continue to attract significant international buyer interest, drawing on their lifestyle credentials, favourable climate, and proximity to Pacific Rim economies. San Diego represents a somewhat more affordable alternative to Los Angeles, with its property market underpinned by a strong military and technology employment base.

Hawaii and Arizona: Hawaii appeals to buyers seeking resort-lifestyle second homes framed by exceptional natural scenery, while Arizona — centred on the Phoenix metropolitan area — combines relative affordability, abundant sunshine, and an expanding economy that attracts both lifestyle purchasers and investment-focused buyers.

Are there any emerging or up-and-coming areas worth considering?

Beyond the well-known hotspots, a number of US markets are attracting growing attention from buyers seeking improved value alongside long-term growth potential.

Nashville, Tennessee: Nashville has sustained substantial population growth, buoyed by a thriving entertainment and healthcare economy and the absence of a state income tax. Property prices remain considerably more accessible than those in coastal cities, and ongoing infrastructure investment has supported continued development throughout the wider metropolitan area.

Raleigh-Durham, North Carolina: The Research Triangle has established itself as a significant technology and life sciences hub, drawing corporate investment from major global firms. Strong rental demand from university students and young professionals, combined with pricing that remains favourable relative to gateway cities, has made this region a consistent draw for both domestic and overseas investors.

Boise, Idaho and Salt Lake City, Utah: Both cities experienced dramatic price appreciation during the pandemic years before settling into a more measured trajectory. They continue to attract buyers drawn by outdoor lifestyle opportunities, growing technology sectors, and living costs that remain lower than those on the West Coast.

Savannah, Georgia and Charleston, South Carolina: These historic Southern cities appeal to lifestyle buyers seeking character, lower prices than the major metros, and solid short-term rental demand driven by steady tourism flows. Coastal properties in particular have attracted rising interest from domestic and international purchasers alike.

Detroit, Michigan: An unconventional option, Detroit’s continuing urban renewal has drawn investors attracted by high rental yields and low acquisition costs. Infrastructure spending, a growing arts and technology scene, and proximity to the Canadian border make it a compelling choice for buyers prepared to accept a higher risk profile in pursuit of potentially stronger returns.

What are the current trends in the US property market?

The median sale price in the US stood at $443,471 in mid-2025, a 1.2% increase year on year, while the volume of homes changing hands over the same period declined by 2.1%. Just over 2 million homes were listed on the market — a 7.2% rise compared with the same month in 2024. These figures point to a market where supply is building but buyer activity is cooling.

Looking at how properties are selling relative to asking prices, only 29% of homes that sold in mid-2025 achieved more than the listed price — a sharp reversal from the peak of May 2022, when nearly 60% of transactions closed above asking price. Sellers no longer command the extraordinary leverage they held during the pandemic boom years.

The shift towards remote and hybrid working that gathered momentum between 2020 and 2022 continues to reshape where people choose to live. Demand for larger homes in secondary cities and suburban locations remains elevated versus pre-pandemic norms, as buyers freed from daily commuting prioritise living space, access to outdoor amenities, and overall quality of life over proximity to urban employment centres.

Sustainability is a notably growing theme in new construction. Green building certifications, energy-efficient design, solar installations, and low-carbon building materials are increasingly standard features in new developments across the country, driven by both evolving consumer preferences and state-level building code reforms, particularly in California.

According to the NAR, foreign buyers spent $56 billion on US residential property between April 2024 and March 2025, representing more than 78,000 home transactions. International demand has remained resilient despite global economic headwinds, reflecting enduring confidence in the stability and transparency of the US real estate market. For the most current market analysis, visit the NAR’s research and statistics portal or the Federal Housing Finance Agency House Price Index.

Is buying property in the United States a good investment?

The US real estate market ranks among the most liquid, transparent, and stable in the world. It is backed by robust legal protections for property owners, a deep and well-developed mortgage finance system, and consistent long-term population growth. For international buyers, these structural characteristics have historically made it a dependable long-term store of value.

Buyers can acquire US real estate from their home country, carry out transactions entirely remotely, and hold assets within one of the globe’s most stable and transparent property markets. For purchasers from nations with less stable currencies or weaker property rights protections, US real estate can function simultaneously as a financial hedge and a safe-haven holding.

Rental yields vary considerably by location. High-cost coastal markets such as San Francisco and New York tend to generate relatively modest gross yields — typically 3–5% — given the scale of capital required to acquire property there. Secondary cities and Sunbelt markets including Dallas, Atlanta, Phoenix, and Tampa more frequently deliver gross yields in the 5–8% range, making them considerably more compelling for yield-oriented investors. Short-term rental platforms have opened additional income streams in tourist-heavy markets, though local regulation of platforms such as Airbnb differs significantly across cities and neighbourhoods.

Currency considerations deserve particular attention from international buyers. Given that the US dollar serves as the world’s reserve currency, dollar-denominated assets provide a natural hedge for many investors. However, exchange rate movements can affect both the real cost of acquisition and the value of rental income when repatriated to the buyer’s home country. Engaging a specialist currency broker rather than a standard bank can meaningfully reduce transfer costs.

Property investment always carries risk. US real estate has undergone significant corrections in the past — most notably the 2008–2009 financial crisis, during which national values fell approximately 30% from peak to trough. Independent financial advice from a qualified adviser with cross-border investment experience is strongly recommended before committing funds.

What types of property are commonly available to buy in the United States?

NAR data indicates that 76% of foreign buyers purchased either a detached single-family home or a townhome. The US market offers considerable variety in property types, with substantial differences across urban, suburban, and rural settings.

• Single-family detached homes: The quintessential American property — a standalone house on its own parcel of land — is the dominant property type in suburban and rural areas. These homes typically offer generous living space, a private garden, and a garage. They are subject to annual property taxes and, where applicable, homeowners’ association (HOA) fees, but generally carry no service charges beyond these.
• Condominiums (condos): Individually owned apartments within a larger building or complex, condominiums are widespread in city centres and resort destinations. Owners hold title to their individual unit while sharing common areas managed by a homeowners’ association, which levies monthly fees to cover maintenance, insurance, and amenities. In New York City, co-operative apartments (co-ops) operate on a different basis: buyers purchase shares in a corporation that owns the building, and a board of directors may screen prospective purchasers — a process that can prove more restrictive for foreign nationals.
• Townhouses: Multi-storey properties sharing one or more walls with adjacent homes, townhouses are common in both urban and suburban settings. They frequently come with HOA fees covering exterior upkeep and shared areas.
• Multifamily properties: Duplexes, triplexes, and larger apartment buildings are popular with investors seeking rental income. A buyer may occupy one unit while leasing the others, or operate the entire building as a rental asset.
• Vacation and resort properties: Beach houses, ski lodges, lakefront homes, and golf community residences are found in resort destinations ranging from the Florida Keys to Colorado mountain towns. Many owners enrol these properties in managed rental programmes when not in personal use.
• Raw land: Foreign nationals may purchase vacant land, though raw land transactions typically require larger down payments (40–50%) and may involve zoning restrictions and development constraints, whereas purchases of existing homes often qualify for more standard mortgage products.

What is the typical step-by-step process for buying property in the United States?

The US purchase process differs significantly from property transactions in many other countries. A notary public plays no role in most states — unlike France, Spain, or Germany, where a notaire or notario is legally mandated. Instead, a title company or closing attorney typically administers the settlement process. The overall framework is well-regulated and transparent, though it moves at pace and requires advance preparation.

1. Obtain an ITIN and set up a US bank account: In the absence of a Social Security number, you will need an Individual Taxpayer Identification Number (ITIN). Apply using IRS Form W-7 before seeking mortgage financing. Establishing a US bank account simplifies fund transfers and is increasingly necessary for FIRPTA compliance when you eventually sell.
2. Arrange financing or proof of funds: Given the competitive nature of the US market and currency exchange dynamics, many foreign buyers opt to purchase in cash — 47% did so in 2024–2025, compared with 28% of all buyers. If you seek a mortgage, expect to present extensive documentation of overseas income and assets, provide a larger down payment (typically 30–40%), and accept higher interest rates than those available to US citizens.
3. Engage a licensed real estate agent (Realtor): In the US, buyer’s agents are ordinarily compensated by the seller, meaning their services generally cost the buyer nothing — though post-2024 NAR rule changes mean buyers may be asked to sign a buyer-agent agreement specifying compensation terms. Seek out agents holding the Certified International Property Specialist (CIPS) designation from the NAR.
4. Search for property and make an offer: Once you identify a property, your agent submits a written purchase offer — referred to as a “purchase agreement” or “offer to purchase” — specifying the proposed price, any contingencies (such as mortgage approval or a satisfactory inspection), and the intended closing date. The seller may accept, decline, or respond with a counter-offer. There is no equivalent of UK-style gazumping in most US states: the signed purchase agreement is binding on both parties, though contingencies permit withdrawal under defined conditions.
5. Pay the earnest money deposit: Once your offer is accepted, you will deposit earnest money — typically 1–3% of the purchase price — into an escrow account managed by a neutral third party (the title company or escrow agent). This sum demonstrates your commitment and is credited towards the purchase price at closing.
6. Conduct due diligence — inspections and title search: During the contingency period (ordinarily 10–30 days), commission a professional home inspection to assess the structural and mechanical condition of the property. Simultaneously, the title company will conduct a title search to confirm that the seller holds clear legal ownership and that the property is free from liens, encumbrances, or competing claims. Title insurance is standard practice in the US and protects buyers against subsequently discovered title defects — a different approach from many European systems, where title issues are addressed through a notarial process.
7. Secure title insurance and finalise mortgage: Two forms of title insurance are standard: lender’s title insurance (required when obtaining a mortgage) and owner’s title insurance (optional but strongly advisable). Where mortgage financing is involved, the lender will commission an independent appraisal of the property to confirm it supports the proposed loan amount.
8. Exchange of contracts / closing disclosure: The US process has no separate exchange of contracts stage equivalent to the one used in England and Wales. The signed purchase agreement functions as the binding contract from the outset. Three business days before closing, you will receive a Closing Disclosure — a standardised document setting out all costs, loan terms, and final transaction figures.
9. Closing (settlement): On the agreed closing date, all parties — or their authorised representatives — execute the required documents. Electronic signing platforms are now widely accepted for international buyers completing remotely. Funds are then transferred. Buyer closing costs typically amount to 2–5% of the purchase price and include title insurance premiums, lender fees, escrow charges, recording fees, and prepaid property taxes and insurance. There is no federal stamp duty equivalent, though many states and municipalities levy a transfer tax, generally in the range of 0.1–2% of the sale price (as of 2025 — confirm the applicable rate with your attorney and the relevant state revenue authority).
10. Property registration (recording): The deed is recorded at the county recorder’s office in the county where the property sits, establishing public record of ownership. The title company or closing attorney arranges this as part of the closing process, ordinarily within a few days of settlement.

Do I need a lawyer to buy property in the United States, and how do I find a reputable one?

Engaging a real estate attorney is not a legal requirement in most US states, but it is strongly advisable for foreign nationals, given the complexity of cross-border tax obligations, FIRPTA rules, state-level ownership restrictions, and entity structuring decisions. In certain states — including New York, Massachusetts, Georgia, and South Carolina — attorney involvement at closing is either mandated by law or established as customary practice.

For a foreign buyer, a real estate attorney will typically review and negotiate the purchase agreement, advise on the most appropriate ownership structure (individual versus corporate), assist with the ITIN application process, ensure FIRPTA compliance ahead of any eventual sale, review title commitments, and coordinate the closing. They will also commonly advise on estate planning implications — a consideration of real importance, since US real estate owned by a non-resident foreign national is subject to US estate tax upon the owner’s death.

Attorney fees vary according to state and transaction complexity. For a straightforward residential purchase, fees commonly fall in the range of approximately $1,000 to $3,000 (as of 2025), though transactions involving corporate structuring or high-value properties may command significantly higher fees. Always confirm current rates directly with the attorney before engagement.

To locate a qualified real estate attorney, contact the American Bar Association (ABA) — the national professional body for US lawyers — at americanbar.org. The ABA’s Lawyer Referral Directory can help identify state-licensed attorneys with real estate expertise. Each state also maintains its own bar association with a referral service; for example, the State Bar of California operates at calbar.ca.gov. The American College of Real Estate Lawyers (ACREL), accessible at acrel.org, lists attorneys holding specialist real estate credentials.

What are the most common pitfalls and problems expats encounter when buying property in the United States?

• Failing to verify state-level ownership restrictions: Before submitting any offer on US property, establish whether the relevant state imposes foreign ownership restrictions and whether your nationality or corporate structure would be affected. This question is distinct from your immigration status — you may be lawfully present in the US yet still be barred from purchasing property in certain states or zones. This area of law is evolving rapidly; always obtain current legal advice specific to your situation.
• Overlooking FIRPTA obligations on eventual sale: When a foreign national sells US real estate, FIRPTA obliges the buyer to withhold a portion of the proceeds and remit it to the IRS. This withholding takes place at closing, before the seller receives any payment, and many foreign sellers encounter this requirement for the first time mid-transaction. Plan for it from the outset, and maintain meticulous records of your original purchase price and any improvement costs.
• Co-op board rejection: Particularly in New York City, buyers of co-operative apartments must obtain approval from the building’s board of directors. Some cooperative boards may view foreign buyers as carrying elevated risk and may scrutinise applications more rigorously. Be ready to supply comprehensive financial records and credible references.
• Title defects and undisclosed liens: While the US title insurance system offers considerable protection, buyers who forgo owner’s title insurance leave themselves exposed to undiscovered claims — including unpaid contractor liens, residual mortgage encumbrances, or errors in public land records. Always purchase an owner’s title insurance policy.
• HOA-related surprises: Homeowners’ association rules can be highly restrictive, and HOA fees can be significant. Carefully review the association’s financial statements, reserve fund levels, and governing documents before committing to a purchase. Special assessments — large, unplanned charges to fund unexpected repairs — can arise with little warning, particularly in older condominium buildings.
• Currency transfer costs and exchange rate exposure: Converting large sums through a conventional bank typically costs significantly more than using a specialist currency transfer service. Exchange rate fluctuations between the date your offer is accepted and the closing date can also affect the effective purchase cost. Consider using forward contracts to lock in favourable rates.
• Off-plan purchase risks: Pre-construction purchases carry inherent risks, including developer insolvency, construction delays, and delivery of a finished product that differs from the marketed specifications. Thoroughly research the developer’s track record and confirm that your deposit is held in an independent escrow account.
• Cross-border tax compliance failures: Owning US property creates tax obligations both in the United States and potentially in your country of residence. Rental income generated by the property must be reported and taxed in the US, and may also be subject to tax in your home country. Failing to file the correct US tax returns can result in penalties that erode your investment returns. From the outset, work with a tax professional experienced in cross-border real estate taxation.

Can I buy property in the United States through a company, and is it worth doing?

Yes — acquiring US property through a corporate entity is entirely permissible and is in fact commonly used by foreign buyers for investment and tax planning purposes alike. The most widely used structures include a US Limited Liability Company (LLC), a US corporation (C-Corp or S-Corp), or a foreign corporation, with the LLC being the most popular vehicle for residential and investment property.

Potential advantages of purchasing through a US LLC:

• Liability protection: An LLC creates a legal separation between personal assets and the property. Should a tenant or visitor sustain an injury on the premises and pursue legal action, personal assets held outside the LLC are generally shielded from liability.
• Estate tax planning: US estate tax represents a significant concern for non-resident foreign nationals, as it applies to US-situated assets — including real property — at rates of up to 40% above a very modest exemption threshold for non-residents (as of 2025, only $60,000 for non-resident aliens, compared with $13.6 million for US citizens). Holding property through a non-US parent company or trust structure may potentially exclude the asset from the US estate tax calculation, though achieving this outcome requires careful and expert structuring.
• Privacy: In certain states, holding property in an LLC means the individual owner’s identity does not appear in publicly accessible records.
• Simplified co-ownership: An LLC with multiple members streamlines shared ownership arrangements and can facilitate the transfer of ownership interests without necessitating a formal property transaction.

Potential drawbacks:

• LLCs carry formation costs, annual state filing fees, and additional accounting requirements.
• Some mortgage lenders decline to lend to LLC borrowers or impose higher interest rates on such loans, which may require buyers to purchase in cash and later refinance into the LLC structure.
• Corporate arrangements introduce ongoing compliance obligations and costs, which become more complex when the structure spans multiple jurisdictions.
• FIRPTA withholding obligations apply equally to corporate sellers as to individuals when the corporation is treated as a “foreign person” under US tax law.

Whether corporate ownership is appropriate depends on each buyer’s specific circumstances, including the property value, their country of domicile, their overall US asset exposure, and their long-term plans. Independent legal and tax advice from a qualified cross-border specialist is essential before proceeding with any such structure.

What taxes and ongoing costs should I budget for when owning property in the United States?

The US imposes no federal property transfer tax or anything equivalent to the UK’s Stamp Duty Land Tax. Nevertheless, several taxes and costs arise both at the point of purchase and throughout the period of ownership.

If you let your property, you face a choice between two tax treatment options. You may make a Section 871(d) election to treat rental income as Effectively Connected Income, which permits you to deduct allowable expenses — such as mortgage interest, property management fees, and maintenance costs — so that tax is levied only on your net income. Without this election, a flat 30% withholding tax applies to your gross rental receipts with no deduction for expenses whatsoever. The Section 871(d) election is almost invariably the more advantageous approach and should be implemented with the assistance of a qualified US tax adviser.

For current federal tax rates and obligations, refer to the Internal Revenue Service (IRS) at irs.gov. For state-level tax information, consult the revenue authority in the state where your property is situated.

What are the official sources I should consult when buying property in the United States?

• Internal Revenue Service (IRS): The federal tax authority. Essential for FIRPTA guidance, ITIN applications, and the tax treatment of rental income. irs.gov
• Committee on Foreign Investment in the United States (CFIUS): Oversees national security review of foreign real estate transactions near sensitive installations and infrastructure. Administered by the US Treasury. home.treasury.gov/CFIUS
• National Association of Realtors (NAR): Publishes comprehensive data on the US property market, including the annual international buyers report, and administers agent accreditation standards. nar.realtor
• US Department of Housing and Urban Development (HUD): The federal body responsible for housing policy, fair housing legislation, and housing market data. hud.gov
• Federal Housing Finance Agency (FHFA): Publishes the authoritative US House Price Index. fhfa.gov
• US Census Bureau (New Residential Sales data): Publishes official data on average and median new home sale prices broken down by region. census.gov/construction/nrs
• American Bar Association (ABA): The national body for US lawyers; its referral directory can help identify qualified real estate attorneys by state. americanbar.org
• Financial Crimes Enforcement Network (FinCEN): Administers the Residential Real Estate Rule requiring beneficial ownership disclosure for all-cash transactions. fincen.gov
• County Recorder / Register of Deeds: Property ownership records and deed registration are managed at the county level. Contact the recorder’s office in the county where your property is located — most maintain online portals for title searches and access to recorded documents.

Frequently asked questions

Do I need to visit the United States in person to complete a property purchase?

No. Buyers can acquire US real estate from overseas and close transactions entirely without setting foot in the country. Remote closings conducted via electronic signing platforms are broadly accepted throughout the US, though certain lenders may still require an in-person step during mortgage origination. A power of attorney arrangement can also authorise a trusted representative to sign documents on your behalf at closing.

Will buying property in the United States give me the right to live there?

No. Owning real estate in the US confers no immigration entitlements whatsoever. The right to live, work, or reside in the country is governed exclusively by US visa and immigration law, which is administered by US Citizenship and Immigration Services (USCIS) and is entirely separate from property ownership rights. If obtaining US residency is your objective, consult a qualified immigration attorney about the visa pathways available to you.

What is an escrow and why is it used in US property transactions?

Escrow is an arrangement whereby a neutral intermediary — typically an escrow company or title company — holds funds and transaction documents until all conditions of the sale have been fulfilled. The buyer places their earnest money deposit and ultimately the full purchase amount into the escrow account; the escrow officer then coordinates the handover of ownership documents, the payment of closing costs, and the release of funds to the seller once every contractual obligation has been satisfied. This differs from many other countries, where funds pass more directly between the parties or their banks without this structured intermediary step.

What is FIRPTA and how does it affect me when I eventually sell my US property?

The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) governs the taxation of foreign persons who dispose of US real estate. Under its provisions, the buyer is required to withhold a percentage of the purchase price — ordinarily 15% — at closing when purchasing from a foreign seller and remit it to the IRS. If the sale price is below $300,000 and the buyer intends to occupy the property as their primary residence, FIRPTA withholding may be waived entirely. Where the price falls between $300,000 and $1 million and the buyer will use it as a primary residence, the withholding rate reduces from 15% to 10%. The withheld sum functions as an advance payment of capital gains tax; if your actual tax liability is lower than the amount withheld, you may claim a refund by filing a US tax return.

Can I get a mortgage in the United States as a foreign national?

Yes. Foreign nationals, including those residing overseas, can access what are known as foreign national loans or foreign national mortgages — lending products specifically designed for borrowers based outside the US who wish to purchase or refinance American property. These products are not backed by Fannie Mae or Freddie Mac. Lenders will typically require a larger down payment than they would from a domestic borrower, as well as more extensive financial documentation, and may charge a higher interest rate to reflect the additional risk.

Are there any restrictions on renting out my US property?

At the federal level, there are no restrictions preventing foreign nationals from leasing their US properties. Short-term lettings — including Airbnb-style arrangements — are, however, subject to local zoning rules, HOA regulations, and city or county licensing requirements that differ considerably from place to place. Several major cities, among them New York City, Los Angeles, and San Francisco, have introduced strict short-term rental regulations that sharply limit or prohibit unlicensed short-term letting. Always investigate the local rules thoroughly before incorporating short-term rental income into your investment projections.

What is title insurance and is it really necessary?

Title insurance is a one-off premium paid at closing that shields the policyholder against financial loss arising from defects in the property’s title — including errors in public land records, undisclosed liens, fraudulent conveyances, forgery, and boundary disputes — that may not have come to light during the title search. Two distinct policies exist: lender’s title insurance, which most mortgage lenders require as a condition of the loan, and owner’s title insurance, which is optional but strongly recommended. Unlike conventional property insurance, which covers future occurrences, title insurance protects against past events that could affect your ownership rights. In a country where public land records can contain gaps or inaccuracies, an owner’s title insurance policy provides important protection and is considered standard practice.

Do I need to file US tax returns if I own property but do not live in the United States?

In most cases, yes. Non-US citizens who generate rental income from their US property must declare that income and pay tax on it in the United States, and may also have obligations in their country of residence. Even where no rental income is produced, owning US real estate can create filing requirements, and the eventual disposal of the property will require the submission of a US non-resident alien income tax return on Form 1040-NR. Engage a tax professional with specific experience in non-resident alien taxation from the very beginning of your ownership. The IRS provides guidance for international taxpayers at irs.gov/individuals/international-taxpayers.