Buying a home in the US as a foreigner

Yes, foreigners can buy property in the US. There's no federal ban on foreign individuals buying a home, and you don't need a visa, a green card or US residency to own one. The main differences for a non-resident are how you pay (non-resident mortgages are harder to get), the US tax paperwork, and the tax withheld when you eventually sell.

Key points

• You can generally buy as a non-resident, but some states restrict certain foreign buyers. These rules are mostly about farmland, land near military sites or buyers from specific countries.
• Closing costs are the same as for a local buyer, typically about 2% to 5% of the price.
• You'll usually need an ITIN (an IRS tax number) if you rent the home out or sell it.
• Non-resident mortgages usually need a bigger down payment. Many foreign buyers pay cash.
• When you sell, the buyer usually withholds 15% of the amount realised under FIRPTA, unless an exception or a withholding certificate applies.

Can foreigners buy property in the US?

For an ordinary house or condo, generally yes. Ownership rights don't depend on your immigration status, and owning a home doesn't give you a right to live or work in the US. You need a visa for that.

There are some limits to know about:

• State laws. These are now the biggest exception, and they're growing fast. By early 2026 about 36 states had laws limiting some foreign ownership of land, so check before you make an offer. See the section below.
• Farmland. Under the federal Agricultural Foreign Investment Disclosure Act, foreign persons who hold a significant interest in US agricultural land must report it to the US Department of Agriculture.
• Condos and co-ops. A condo association or co-op board may have its own rules, such as limits on renting the unit out. Co-op boards in particular can be strict about buyers who live abroad.

How buying a house in the US as a non-resident works

The process is the same as for a US buyer. You make an offer, sign a purchase contract, pay an earnest money deposit, arrange inspections, and close through a title company, escrow company or attorney, depending on the state. The extra steps for a non-resident are mainly about identity, money and tax:

1. Plan how you'll own it. You can buy in your own name or through a company or trust. The right choice depends on tax in the US and at home, so take advice before you sign.
2. Prove your funds. You'll need to show where your money comes from, and money sent from abroad can take time to clear. Lenders must document the source of your cash to close.
3. Get a tax number. See the ITIN section below.
4. Arrange insurance. Lenders require homeowners insurance, and you'll usually pay the first 6 to 12 months at or before closing.
5. Sign and fund. Some closings can be done remotely or through a power of attorney, but notarisation abroad can take time. Ask your closing agent early.

ITIN: your US tax number

An Individual Taxpayer Identification Number (ITIN) is a 9-digit number the IRS issues to people who need a US tax number but can't get a Social Security number. It's for tax only. It doesn't give you any immigration status or the right to work.

You generally need one if you have to file a US tax return. As a foreign owner, that usually means when you:

• Rent the home out. Rental income a non-resident earns from US property is generally taxed at 30% (or a lower treaty rate) on the gross rent. Alternatively, you can elect to treat it as business income, deduct expenses and pay tax on the net amount. You make that choice by filing Form 1040-NR.
• Sell the home. You'll need a tax number to file a return and claim back any tax withheld above what you owe.

Allow time for an application. The IRS says decisions usually take about 7 weeks, and 9 to 11 weeks during tax season or if you apply from overseas.

Mortgages for non-residents

Some US lenders offer mortgages to foreign nationals, but there are fewer of them, and they're stricter than standard loans. As a typical guide, expect:

• a bigger down payment, often 25% or more of the price
• more paperwork on your income, assets and credit history abroad
• sometimes a higher interest rate or extra fees

The Loan Estimate and Closing Disclosure rules still apply, so you can compare offers line by line. See closing costs explained.

Closing costs for a foreign buyer

Being foreign doesn't add a federal tax to buying a home. Your closing costs are lender fees, title insurance, escrow, recording fees and any state or local transfer taxes. They typically come to about 2% to 5% of the price.

Example. You buy a $500,000 condo in a typical state to rent out. Budget about US$15,000 for closing costs, plus your down payment, plus a few months of property tax, insurance and any condo fees.

Property tax and insurance

Property tax is charged by counties, cities and school districts, not the federal government. It's an annual tax based on the assessed value of the home. Rates vary widely, from well under 1% a year in some places to over 2% in others. Some states give lower tax to owners who live in the home as their main residence, and those reliefs often don't apply to a holiday home or a rental. Ask the county assessor's office for the current bill before you buy.

Homeowners insurance is required by lenders. In areas at risk of hurricanes, wildfires or floods it can be expensive or hard to get, and flood cover is usually a separate policy. Get a quote before you commit.

State laws on foreign buyers ("foreign adversary" laws)

There's no federal ban, but state laws have spread quickly. By early 2026 about 36 states had laws restricting some foreign ownership of land. Most target governments, companies and people from countries the US treats as foreign adversaries, usually China, Russia, Iran and North Korea, and sometimes Cuba, Venezuela and Syria. The rules differ in who they cover, which land they cover and what exceptions apply.

• Florida (since July 2023). People and companies from China, Cuba, Iran, North Korea, Russia, Syria and Venezuela face limits on buying agricultural land and land within 10 miles of military bases or critical infrastructure. People domiciled in China face wider limits on owning property in the state, with a narrow exception for one home of up to 2 acres away from military sites. A federal appeals court let the law stand in November 2025.
• Texas (from 1 September 2025). Senate Bill 17 bars governments, companies and many individuals connected to designated countries (including China, Russia, Iran and North Korea) from buying land in Texas. US citizens and green-card holders are exempt, and so is a lawfully present resident buying their own home to live in. Leases under a year are allowed. Breaking it can lead to criminal penalties and a forced sale.
• Many other states, including Alabama, Arkansas, Georgia, Indiana, Louisiana, Montana, Tennessee, Utah and Virginia, have their own versions, often focused on farmland or land near military sites.

What to do: if you're a citizen of, live in, or are funded from one of these countries, ask a real estate attorney in that state to confirm you can buy before you sign anything. For buyers from the UK, EU, Canada, Australia and most other countries, these laws generally don't apply, but some farmland rules cover all foreign buyers.

FIRPTA: tax withheld when you sell

Under the Foreign Investment in Real Property Tax Act (FIRPTA), when a foreign person sells US property, the buyer usually must withhold 15% of the amount realised (broadly, the sale price) and pay it to the IRS. This isn't the final tax. You file a US return for the year of sale, and any amount withheld above your actual tax is refunded.

• If the buyer will live in the home and the price is $300,000 or less, withholding generally doesn't apply.
• If the buyer will live in the home and the price is over $300,000 and up to $1 million, a reduced rate of 10% applies.
• You can apply for a withholding certificate (Form 8288-B) to reduce the amount withheld when your actual tax will be lower. The IRS normally acts within 90 days of getting all the information it needs.

FIRPTA also matters if you buy from a foreign seller. The buyer is usually the withholding agent and can be liable if tax isn't withheld.

Common mistakes

• Not checking state rules first. Restrictions on some foreign buyers vary by state and are changing.
• Forgetting the ITIN timeline. Start early if you plan to rent the home out.
• Underestimating running costs. Property tax, insurance and HOA fees can be high, especially in states with high taxes or big weather risks.
• Ignoring tax at home. Your own country may tax US rental income or gains too. Check with a tax adviser in both countries.

Tax back home

Buying abroad can create tax to pay and forms to file where you live, not just where you buy.

• UK residents are generally taxed on their worldwide income and gains. Rent from a home abroad goes on your Self Assessment return, and when you sell you may owe UK Capital Gains Tax. You can usually claim Foreign Tax Credit Relief for tax already paid in the other country, so the same income isn't fully taxed twice.
• US citizens and green-card holders are taxed on worldwide income wherever they live. Report foreign rental income on your US return. If your foreign bank accounts together go over $10,000 at any time in the year, file an FBAR (FinCEN Form 114), and you may also need Form 8938 (FATCA) if your foreign financial assets pass its thresholds. A home you own directly isn't reported on Form 8938, but the foreign account you pay through may be.
• Everyone else: check how your country taxes foreign rent and gains, and whether it has a tax treaty with the country you're buying in.

Plan this before you buy, ideally with a tax adviser who knows both countries.

Work out your own figures

Use our US buying costs calculator to estimate closing costs at a lower-cost, typical or higher-cost level for the price you have in mind. Then confirm state taxes, insurance and loan terms with your closing agent and lender.