United States — Property: Foreign Ownership

Why this matters

Foreign ownership can impact property values, local economies, and national security, making it a significant concern for the US government and citizens.

Key facts

• CFIUS Part 802 covers foreign purchases or leases of real estate near military installations, airports and maritime ports where the foreign person gains at least three specified property rights.
• It does not apply to a single housing unit or, generally, to real estate in urbanised areas unless within close proximity of a listed installation or in a covered port.
• Close proximity is one mile for certain installations, with an extended range of one to 100 miles for others; filing is voluntary, by notice or short-form declaration.
• A November 2024 Treasury rule expanded coverage around more than 60 installations in 30 states.
• Under FIRPTA the buyer generally withholds 15% of the amount realised when buying US real property from a foreign seller (10% for residence sales between USD 300,000 and USD 1 million; none at USD 300,000 or less for a residence).

Steps

1. Step 1: Determine Eligibility — Understand federal and state regulations regarding foreign ownership. Some states have restrictions on foreign ownership of agricultural land or property near military bases.
2. Step 2: Obtain Necessary Documents — Foreign buyers typically need to obtain an Individual Taxpayer Identification Number (ITIN) from the IRS and provide documentation of their foreign address and identification.
3. Step 3: Work with a Qualified Real Estate Agent — Choose an agent familiar with foreign property transactions to ensure compliance with regulations and smooth the buying process.