Can Foreigners Buy Property in the USA? What You Need to Know

If you're curious whether foreigners can own real estate in the United States, the short answer is yes—almost always. As someone who isn’t an agent or pushing services, my goal on US PROPERTY MARKET BLOG is to offer clear, honest guidance for anyone exploring homes for sale, property investment tips, or land for sale—no strings attached. Can Foreigners Buy Property in the USA? What You Need to Know.

Let’s walk through key considerations, step by step, so you can understand your options—and decisions—confidently.

1. Legal Ownership: It Is Allowed

There’s no federal barrier preventing foreign nationals from purchasing residential, commercial, or industrial real estate in the U.S.—you don’t need a green card, visa, or residency.

What matters most is where the property is located, and whether any local regulations apply. Can Foreigners Buy Property in the USA? What You Need to Know.

2. State-Level Restrictions Exist, Primarily for Security

Some states impose restrictions—particularly around sensitive land:

• Florida: Law (SB 264) restricts individuals from certain countries from buying land within proximity to critical infrastructure or military sites.
  

• Texas: Starting Sept 2025, SB 17 limits property purchases or long-term leases by nationals from certain countries—though exceptions exist for primary residences.
  

• Federal review: Transactions involving land near military sites are now subject to national-security review under expanded review rules.
  

This means restrictions exist but are generally limited to strategic locations—not standard residential zones.

3. Financing as a Foreign Buyer: More Complex, But Doable

While cash purchases are always simpler, financing options exist for non-U.S. buyers:

• Foreign National Mortgages are available—but expect higher down payments (25–50%) and higher interest rates (often 6–8%).
  

• Non-resident buyers must provide extensive documentation, from home country credit reports to proof of fund sources.
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• Alternatives like FHA, Fannie Mae, and Freddie Mac loans may be accessible if you're a resident alien or have a visa and meet documentation requirements.
  

Basically, mortgages are possible—but come with stricter underwriting.

4. Required Documentation and Setup

If you're financing or even buying with cash, here are must-have items:

• ITIN (Individual Taxpayer Identification Number)—required for tax reporting and opening bank accounts.
  

• Local U.S. bank account—highly recommended to manage payments and closing costs.
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• Trusted local professionals: Real estate agent (ideally with international experience), real estate attorney, mortgage specialist, and accountant.
  

5. Taxes and Legal Considerations

• FIRPTA: This federal law requires buyers to withhold up to 15% of the sales price when a foreign seller disposes of U.S. property.
  

• Capital gains & estate taxes: Foreign sellers are subject to U.S. capital gains, and estate tax thresholds for non-residents are much lower, so future planning is critical.
  

Taxes matter—and your legal or tax advisor should be part of the process. Can Foreigners Buy Property in the USA? What You Need to Know.

6. What Can You Buy?

Foreign buyers have nearly the same property rights as citizens:

• Residential: Single-family homes, condos, multi-unit buildings. Co-ops are tricky and often not ideal.
  

• Commercial Real Estate: Offices, shops, multifamily buildings—used frequently for investment purposes.
  

• Raw Land: Available in most places, though agricultural lands or fire-sensitive zones may have added restrictions.
  

7. Understanding Market Impacts

Foreign investment can influence real estate dynamics:

• In Florida alone, as of 2024, foreign buyers spent $42 billion on U.S. residential property—with popular buyers from Canada, China, Mexico, and India.
  

• Proposed visa programs tying investment to residency may push up property prices in major cities, impacting affordability.
  

These trends matter if you're positioning real estate purchases with long-term returns in mind.

Summary Table: Foreign Buyers at a Glance

FactorWhat It MeansOwnershipAllowed federally with rare state-level restrictionsFinancingAvailable, but higher hurdles than for residentsDocumentation RequiredITIN, finances, legal help, bank accountsTaxes and RegulationsFIRPTA, capital gains, estate tax are importantProperty Types AvailableResidential, commercial, condos, land (some limits)Market InfluenceGrowing foreign demand affects pricing and availability

Final Thoughts

Yes, as a non-U.S. citizen, you can buy property in the United States—legally and with transparency. While complexity surrounds financing, taxes, and compliance, none of it is insurmountable. Buying property here can be a smart move—whether for a home, as an investment, or part of a global strategy. Can Foreigners Buy Property in the USA? What You Need to Know.