A foreign national can buy a house in the USA without holding a visa, a green card, or any particular immigration status. The transaction itself looks much like it does for a U.S. citizen: find a property, make an offer, complete due diligence, close. The differences show up around the edges — stricter mortgage terms if you finance, federal reporting rules aimed at foreign buyers, and a tax picture that gets complicated both while you own the property and when you eventually sell or pass it on.
Do You Need a Visa or Residency to Buy
No federal law ties property ownership to citizenship or immigration status. Any foreign national can own U.S. real estate. Buying a house does not, on its own, give you any right to live in it: extended stays still require the appropriate visa. And ownership grants no immigration benefit. If you’re looking for an investment path to residency, that’s the EB-5 program, which requires an $800,000 to $1,050,000 investment in a job-creating commercial enterprise and is separate from buying a home.1U.S. Citizenship and Immigration Services. Green Card for Immigrant Investors
One boundary worth checking before you make an offer: a growing number of states restrict property purchases by nationals of certain countries. Some target agricultural land, some cover property near military installations, some reach residential real estate more broadly. Countries commonly named include China, Russia, Iran, North Korea, Cuba, and Venezuela. Rules vary by state, and penalties can include forced divestiture, so verify the law of the specific state you’re buying in.
Get an ITIN and a U.S. Bank Account First
Two setup steps take real time and should start well before you find a property.
An Individual Taxpayer Identification Number is a nine-digit IRS number for people who need to file U.S. taxes but can’t get a Social Security number.2Internal Revenue Service. Individual Taxpayer Identification Number ITIN You’ll need one to apply for a mortgage, report rental income, and handle withholding when you sell. Apply on IRS Form W-7 by mail, through an IRS-authorized Certifying Acceptance Agent, or in person at a Taxpayer Assistance Center. Processing runs seven weeks or longer.
You’ll also need a U.S. bank account for your down payment, closing costs, and ongoing expenses. Most banks want you to open the account in person with a passport, proof of address, and your ITIN. Requirements vary, so call ahead about the initial deposit and what documents the branch will accept.
Paying Cash or Financing the Purchase
Cash is simpler. It skips the loan process, shortens the closing timeline, and strengthens your offer. Many foreign buyers, especially investors, buy this way.
If you need a mortgage, the main product is a “foreign national loan,” a conventional mortgage designed for buyers without U.S. credit history or residency. The terms run harder than a standard U.S. mortgage. Lenders typically require at least 30% down, and some ask for 40% to 50% depending on the property and your finances. 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 because collecting on a default from overseas is difficult. Most lenders require an ITIN in place of a Social Security number.
Foreign nationals with existing U.S. residency, such as green card holders and certain visa holders, may qualify for conventional or FHA loans on standard terms. The stiffer requirements above are aimed at non-resident foreign nationals.
Making the Purchase From Abroad
Hire a real estate agent who has closed international transactions before. Not every agent understands the financing constraints, documentation, or tax issues a foreign buyer faces. A U.S. real estate attorney is worth engaging as well, even in states that don’t require one, for contract review and title work in a legal system you’re not used to.
The sequence from there is standard: written offer, negotiation, purchase agreement, inspection, appraisal if you’re financing, and closing. Funds move through your U.S. bank account and the deed gets recorded with the county.
Closing Without Being There
If you can’t attend closing in person, you can authorize someone to sign for you with a power of attorney. Keep it specific to the transaction: property address, legal description, and the actions your representative may take. Settlement agents typically want a POA that’s recent, generally no older than three to six months, and will reject anything too broad or stale.
A POA signed abroad usually needs to be notarized by a U.S. consular officer, or notarized locally and then authenticated. If your country is a member of the Hague Apostille Convention, an apostille certificate handles the authentication. Non-Hague countries require a longer chain through the country’s own government and the U.S. embassy. Allow a few weeks, and confirm the exact format your settlement agent will accept before you sign anything overseas.
Reporting Rules for Purchases Through an LLC or Trust
If you buy directly in your own name, the following rules don’t apply. If you buy through a legal entity, they do.
FinCEN’s Geographic Targeting Orders require title insurance companies to identify the real people behind shell companies used in non-financed residential purchases in certain major metropolitan areas across roughly a dozen states. The reporting threshold in most covered areas is $300,000.3Financial Crimes Enforcement Network. FinCEN Renews Residential Real Estate Geographic Targeting Orders
A broader rule takes effect for transfers on or after March 1, 2026. FinCEN’s nationwide Residential Real Estate Rule requires settlement agents, title companies, and attorneys to report non-financed transfers of residential real estate to any legal entity or trust. It applies everywhere in the country, with no minimum purchase price.4Financial Crimes Enforcement Network. Residential Real Estate Rule Direct purchases by an individual are not covered, but if you buy through an LLC or trust, expect detailed questions about who ultimately owns and controls it.5Financial Crimes Enforcement Network. FinCEN RRE Fact Sheet
Taxes While You Own the Property
Local property taxes apply the same way they do for any owner, assessed by the county or municipality. Rates vary widely by location, from well under 1% of assessed value annually in some areas to over 2% in others. Build this into your carrying-cost budget.
If you rent the property out, federal tax treatment turns on one election. The default rule for non-resident aliens is a flat 30% tax on gross rental income, with no deductions.6Internal Revenue Service. Nonresident Aliens – Real Property Located in the U.S. That means tax on every rent dollar before subtracting mortgage interest, management fees, repairs, or depreciation.
An election under IRC Section 871(d) treats the rental income as effectively connected with a U.S. trade or business. You’re then taxed on net income at graduated rates and can deduct ordinary rental expenses. For most owners, this cuts the bill significantly. Make the election by attaching a statement to your U.S. tax return; once made, it applies to all your U.S. real property income.
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. It’s not a separate tax. It’s an advance payment against your capital gains tax, but it locks up a substantial portion of your proceeds at closing.7Internal Revenue Service. FIRPTA Withholding
The rate depends on the sale price and the buyer’s intended use: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% if the buyer will use it as a residence and the price is between $300,001 and $1,000,000.
- 15% on all other sales, including investment properties and sales above $1,000,000.
If the withholding will exceed your actual tax liability, apply for a withholding certificate on IRS Form 8288-B before closing. This asks the IRS to reduce or eliminate the withholding based on your expected tax.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 ahead of the sale. You can also file a U.S. tax return after closing to claim a refund of any overpayment.
Estate Tax Exposure
This is the piece of foreign ownership most buyers don’t see coming. U.S. citizens in 2026 have a $15 million federal estate tax exemption. Non-resident aliens get $60,000.11Internal Revenue Service. Some Nonresidents With U.S. Assets Must File Estate Tax Returns If a foreign national dies owning a $500,000 U.S. condo outright, the 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 The tax bill can easily exceed $150,000.
The United States has estate tax treaties with about 15 countries that may improve the picture. The U.S.-UK treaty, for instance, lets UK residents claim a proportional share of the full U.S. exemption, which can effectively eliminate the tax for many property owners. Check whether your country has a treaty and read it carefully.
Using a Foreign Corporation to Reduce Estate Tax
Many foreign buyers hold U.S. real estate through a foreign corporation, or through a foreign LLC that elects to be taxed as a corporation. U.S. estate tax reaches U.S.-situated assets owned by a non-resident alien, but shares in a foreign corporation are treated as situated outside the United States regardless of what the corporation owns. Your ownership interest in the foreign entity then sits outside U.S. estate tax entirely.
The trade-off is compliance. Holding property through a foreign corporation brings corporate tax returns, potential branch profits tax, and additional reporting, with annual costs that can run into thousands of dollars. The structure makes more sense for higher-value properties where the estate tax savings clearly outweigh the overhead. Work through the numbers with a tax advisor who handles non-resident alien property owners before choosing a holding structure.