Can Foreign Buyers Purchase U.S. Real Estate?

Yes. Foreign nationals can purchase real estate in the United States without restriction — there is no federal law prohibiting foreign ownership of U.S. real property. The U.S. real estate market is one of the most accessible in the world for international buyers.

However, foreign buyers face additional legal, tax, and compliance requirements that U.S. buyers do not — and navigating these requirements correctly before closing is essential.

FIRPTA: The Foreign Investment in Real Property Tax Act requires buyers to withhold 15% of the purchase price when purchasing real property from a foreign seller. This withholding is an advance payment against the seller's potential U.S. tax liability on the sale. Buyers who fail to withhold when required become personally liable for the withholding amount.

State-specific restrictions: A small number of states have enacted laws restricting foreign ownership of real property near military installations or agricultural land — but these restrictions generally do not affect luxury residential real estate in major markets.

Financing: Foreign nationals who are not U.S. residents typically cannot access standard U.S. mortgage products. Jumbo portfolio loans, securities-backed lending, and cash purchases are the primary financing options for non-resident foreign buyers.

Tax identification: Foreign buyers must obtain an Individual Taxpayer Identification Number (ITIN) to complete a real estate purchase in the U.S. and to file required tax returns.