A foreign national can buy a house in the USA without holding a visa, green card, or any particular immigration status. The transaction itself looks much like one a U.S. citizen would complete, but the setup takes longer, financing is stricter, and the tax consequences — both while you own the property and when you eventually sell or pass it on — are the parts most buyers underestimate.
Can a Foreigner Legally Buy a Home in the U.S.?
Yes. There is no federal law requiring U.S. citizenship or residency to purchase real estate, and any foreign national can own property here regardless of visa status.1U.S. Citizenship and Immigration Services. Green Card for Immigrant Investors Buying does not grant any immigration benefit. Owning a house will not qualify you for a visa or green card, and if you plan to actually live in the property for extended periods, you still need the appropriate visa or residency status for that stay.
One boundary worth knowing before you make an offer: a growing number of states have passed or proposed laws restricting property purchases by nationals of certain countries deemed foreign adversaries. These restrictions vary widely. Some target agricultural land, some apply only to property near military installations, and some reach residential real estate more broadly. If you hold a passport from China, Russia, Iran, North Korea, Cuba, or Venezuela, check the specific state’s law before you sign anything. Penalties can include forced divestiture.
Get Your ITIN and U.S. Bank Account First
Two practical steps need to happen before you can realistically close on a property, and both take time.
The first is an Individual Taxpayer Identification Number. An ITIN is a nine-digit number the IRS issues to people who need to file U.S. taxes but aren’t eligible for a Social Security number.2Internal Revenue Service. Individual Taxpayer Identification Number ITIN You’ll need one for a mortgage application, for reporting rental income, and for the withholding that applies when you sell. Apply using IRS Form W-7, which you can submit by mail, through an IRS-authorized Certifying Acceptance Agent, or in person at an IRS Taxpayer Assistance Center. Processing typically takes seven weeks or longer, so start before you find a property.
The second is a U.S. bank account to hold your down payment, pay closing costs, and cover ongoing expenses like property taxes and insurance. Most banks require you to visit a branch in person with a valid passport, proof of address, and your ITIN. Expect to bring a utility bill or formal letter showing your address, and expect an initial deposit requirement that varies by bank.
Paying Cash vs. Getting a Mortgage
Paying cash is the simplest path. It skips the lending process, speeds up closing, and makes your offer more competitive. Many foreign buyers go this way, particularly investors.
If you need financing, the main product is a “foreign national loan.” These are conventional mortgages built for buyers without U.S. credit history or residency, and the terms are noticeably stiffer than what a citizen would see:
- Down payments typically start at 30% and can run 40% to 50% depending on the property and your financial profile.
- Documentation includes a valid passport, a foreign credit report or alternative credit verification, foreign bank statements as proof of income, and evidence of sufficient assets.
- Interest rates run higher than standard U.S. mortgages because collecting on a default from overseas is harder.
- Most lenders require an ITIN in place of a Social Security number.
Foreign nationals who already hold U.S. residency, including green card holders and certain visa holders, may qualify for conventional or even FHA loans on standard terms. The stricter requirements above apply mainly to non-resident foreign nationals who don’t live and work in the United States.
Walking Through the Purchase
The mechanics are largely the same as for any U.S. buyer: find a property, make a written offer, negotiate price and contingencies, sign a purchase agreement, complete due diligence, and close. A home inspection identifies structural or mechanical problems, and an appraisal confirms market value (required if you’re financing). Closing involves signing the deed, transferring funds through your U.S. bank account, and recording the transaction with the local county.
Two professional hires are worth more than they cost. First, a real estate agent experienced with international transactions, because not every agent understands the financing constraints, tax implications, or documentation issues foreign buyers face. Second, a U.S. real estate attorney. This isn’t legally required in every state, but for a foreign buyer dealing with unfamiliar property laws, title issues, and contract terms, the fee is well spent.
Closing from Abroad
If you can’t be physically present at closing, you can usually authorize someone to sign on your behalf using a power of attorney. The POA should be specific to the transaction, naming the property address, legal description, and the actions your representative can take. Settlement agents are particular about these documents. Most require POAs to be recent (generally no older than three to six months) and will reject anything stale or too broadly worded.
If you sign the POA outside the United States, it will likely need to be notarized by a U.S. consular officer, or notarized locally and then authenticated with an apostille certificate if your country belongs to the Hague Apostille Convention. Non-Hague countries require a longer authentication chain through their own government and the U.S. embassy. Plan for several weeks, and confirm the exact format your settlement agent will accept before you sign anything overseas.
Reporting Rules for Cash and Entity Purchases
Buying through an LLC, trust, or other legal entity triggers federal reporting rules aimed at the real people behind the structure.
FinCEN’s Geographic Targeting Orders already require title insurance companies to identify the beneficial owners behind shell companies used in non-financed residential purchases in certain major metropolitan areas across roughly a dozen states. The reporting threshold is $300,000 in most covered areas.3Financial Crimes Enforcement Network. FinCEN Renews Residential Real Estate Geographic Targeting Orders
FinCEN’s broader Residential Real Estate Rule takes effect for transfers occurring on or after March 1, 2026. It requires settlement agents, title companies, and attorneys involved in closings to report non-financed transfers of residential real estate to any legal entity or trust, anywhere in the country, with no minimum purchase price.4Financial Crimes Enforcement Network. Residential Real Estate Rule Transfers directly to an individual are not covered.5Financial Crimes Enforcement Network. FinCEN RRE Fact Sheet If you’re buying through a company, expect the settlement agent to collect detailed information about who ultimately owns and controls it.
Taxes While You Own
If you rent out the property, the default IRS rule for non-resident aliens is a flat 30% tax on gross rental income, with no deductions allowed.6Internal Revenue Service. Nonresident Aliens – Real Property Located in the U.S. That means paying tax on every dollar of rent before mortgage interest, management fees, repairs, or depreciation.
Most owners avoid this by making an election under IRC Section 871(d) to treat rental income as “effectively connected” with a U.S. trade or business. Once elected, you’re taxed on net income at graduated rates and can deduct ordinary operating expenses.6Internal Revenue Service. Nonresident Aliens – Real Property Located in the U.S. You make the election by attaching a statement to your U.S. tax return, and it then applies to all your U.S. real property income.
Local property taxes apply regardless of citizenship. They’re set by county or municipal governments and vary widely, from well under 1% of assessed value annually in some areas to over 2% in others. Budget for it as a steady carrying cost.
FIRPTA Withholding When You Sell
The Foreign Investment in Real Property Tax Act requires the buyer to withhold a percentage of the sale price when a foreign person sells U.S. real property and send it to the IRS.7Internal Revenue Service. FIRPTA Withholding This isn’t a separate tax. It’s an advance payment toward whatever capital gains tax you actually owe. But it ties up a significant chunk of your proceeds at closing.
The rate depends on the sale price and how the buyer plans to use the property:8Office of the Law Revision Counsel. 26 U.S. Code 1445 – Withholding of Tax on Dispositions of United States Real Property Interests
- No withholding if the buyer will use the property as a residence and the sale price is $300,000 or less.9Internal Revenue Service. Exceptions From FIRPTA Withholding
- 10% withholding if the buyer will use it as a residence and the sale price is between $300,001 and $1,000,000.
- 15% withholding on all other sales, including investment properties and sales above $1,000,000.
When the withheld amount exceeds your actual tax liability, which is common if the property hasn’t appreciated much, you can apply for a withholding certificate on IRS Form 8288-B before closing to ask the IRS to reduce or eliminate the withholding.10Internal Revenue Service. About Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests Processing can take several months, so file well before your expected sale date. You can also file a U.S. tax return after the sale to claim a refund of anything overpaid.
Estate Tax: The Trap Most Buyers Miss
This is where foreign ownership of U.S. real estate gets genuinely dangerous from a planning perspective. U.S. citizens in 2026 receive a $15 million estate tax exemption. Non-resident aliens get $60,000.11Internal Revenue Service. Some Nonresidents With U.S. Assets Must File Estate Tax Returns If you’re a foreign national who owns a $500,000 condo in Miami and you die, your estate faces federal estate tax on roughly $440,000 of that value at rates up to 40%.12eCFR. 26 CFR Part 20 – Estates of Nonresidents Not Citizens That can easily mean a bill north of $150,000 before your heirs see anything.
The U.S. has estate tax treaties with about 15 countries that may improve this picture. The U.S.-UK treaty, for example, allows UK residents to claim a proportional share of the full U.S. exemption, which can effectively eliminate the tax for most property owners. If your home country has an estate tax treaty with the United States, review it carefully before you buy.
Holding Property Through a Foreign Corporation
Many foreign buyers hold U.S. real estate through a foreign corporation, or a foreign LLC that elects to be taxed as a corporation. U.S. estate tax applies to U.S.-situated assets owned by a non-resident alien, but shares in a foreign corporation are considered situated outside the United States regardless of what the corporation owns. If a foreign LLC treated as a corporation owns your U.S. property, your interest in that LLC falls outside the estate tax entirely.
The trade-off is complexity. Holding property through a foreign corporation means corporate tax returns, potential branch profits tax, and additional reporting. Annual compliance can run into thousands of dollars, so the structure makes sense for higher-value properties where the estate tax savings justify the overhead. A tax advisor who works with non-resident alien property owners should model the numbers for your situation before you commit to a holding structure.