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Properties foreigners can and cannot buy in the US

On Behalf of | Feb 5, 2025 | Real Estate Law |

Dreaming of owning a piece of the American landscape? As a foreigner, you might wonder about your options for purchasing property in the United States. The good news is that many opportunities exist, but understanding the rules and regulations regarding the types of real estate non-U.S. citizens can and cannot buy is crucial.

No federal limitations on foreign individuals owning real estate

In general, foreigners can buy most types of property in the U.S., including:

  • Residential homes
  • Condominiums
  • Apartments
  • Commercial buildings
  • Vacant land

Foreign nationals cannot purchase agricultural land, property near military bases or government buildings or certain historical landmarks. Additional limitations may be imposed by state and local laws, and some cooperative boards may be reluctant to approve foreign buyers.

Legal considerations when buying a property

The real estate purchase process for foreigners is similar to what U.S. citizens experience, but with a few extra considerations. If you do not have a Social Security number, you will need to acquire an Individual Taxpayer Identification Number (ITIN). This allows you to pay taxes on your property and comply with U.S. tax laws.

Foreign buyers can get financing, but it might be different from what U.S. residents receive. Lenders typically ask for bigger down payments and extra paperwork from foreign buyers. It is best to look into these requirements early when planning to buy.

Purchasing property in the U.S. is attainable with the right preparation. Arm yourself with information and consult a professional for advice. This way, you can ensure your American dream becomes a secure and fulfilling reality.