Who can buy
Foreign nationals can purchase US real estate as individuals or through a foreign or US legal entity (LLC, corporation, trust). There is no visa or immigration status requirement to own US property — though property ownership does not grant any immigration benefit.
Common ownership structures
Personal name
Simplest, lowest cost. Income from rental property is reported on US Form 1040-NR. Estate tax exposure (US estate tax applies to non-residents on US real property) is a significant concern for higher-value properties.
US LLC
Provides liability protection. Single-member LLCs are typically disregarded for tax purposes (taxed like personal ownership), so they don't help with estate tax exposure. Multi-member LLCs are taxed as partnerships.
Foreign corporation or US C-corp
Can mitigate estate tax exposure but adds corporate-tax complexity and FIRPTA-withholding mechanics. Generally only worth it above ~$1M property value. Always consult a US cross-border tax attorney before structuring.
Financing
Many international buyers pay in cash, but financing is available for non-residents from a subset of US banks and "foreign national" loan programs. Typical terms:
- Down payment: 30–40% (vs. 5–20% for US residents)
- Interest rate: typically 0.5–1.5% higher than rates for US residents
- Documentation: 2–3 years of foreign tax returns or equivalent, foreign credit references, bank statements, an international reference letter
- Reserves: 6–12 months of mortgage payments in a US bank account
Tax basics
Property tax
All US property owners pay annual property tax to the county. Florida property tax rates are typically 1.0–2.0% of assessed value, depending on the county and any applicable exemptions. Non-residents do NOT get the Florida homestead exemption (which is for primary residences only).
Rental income tax
Rental income from US real estate is US-source income and is taxed in the United States regardless of where the owner lives. By default, a flat 30% withholding tax applies to gross rental income — but most non-resident owners elect to be taxed on net rental income at regular graduated rates, which is almost always lower. Election is made on Form W-8ECI.
FIRPTA on sale
When a non-resident sells US real estate, the buyer is required to withhold 15% of the gross sale price under FIRPTA (Foreign Investment in Real Property Tax Act). This is a prepayment of tax — the actual tax due is calculated on the capital gain, and any over-withholding is refunded. Withholding can be reduced or eliminated through a withholding certificate filed in advance.
Estate tax
US estate tax applies to non-residents on US real property and US-situs assets above a $60,000 exemption — far lower than the multi-million exemption available to US citizens and residents. Top rate is 40%. Estate tax exposure is the single most important reason to consult a cross-border tax attorney before buying significant US real estate.
Practical steps
- Open a US bank account. Some major US banks have international or "private client" desks that can open accounts for non-residents, often during a single in-person visit.
- Obtain an ITIN. An Individual Taxpayer Identification Number (Form W-7) is required for tax filings. Apply through an IRS-authorized Acceptance Agent.
- Hire a US-based real estate attorney. Strongly recommended for any non-resident purchase. Florida is an "attorney optional" state but attorneys add critical protection in cross-border transactions.
- Hire a US-based cross-border tax advisor. They should review the ownership structure before you make an offer.
- Find a partner agent with international-buyer experience. They can coordinate remote tours, digital signing, and the logistics of an out-of-country buyer.
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This guide is educational and not legal or tax advice. Cross-border real estate transactions require qualified US tax and legal counsel — always consult a licensed attorney and a US-experienced tax advisor before signing.