Can Foreigners Buy Property in the USA? 2026 Guide

Introduction

Yes, a foreigner can buy property in the United States. There is no federal law that stops a non-US citizen from buying a home, and you do not need a visa, a green card or US citizenship to own one. What surprises many overseas buyers is how different the process is from buying at home — the deposit rules, the tax on selling, and the mortgage rates in 2026 all change the numbers.

Foreign buying has slowed this year. According to the National Association of Realtors’ 2026 international report, foreign buyers bought 67,100 existing homes worth $45.3 billion between April 2025 and March 2026 — down 14% in homes and 19.1% in dollars on the year before, and the second-lowest count since the survey began in 2009. International buyers made up about 1.7% of all existing-home sales. NAR chief economist Lawrence Yun linked the slowdown to fewer international visitors and a more uncertain political climate, even though a slightly weaker dollar gave overseas buyers more purchasing power.

That slowdown is also an opportunity. Prices are still rising, but slowly. The national median price for an existing home was $417,500 in September 2026, up 1.3% on a year earlier, according to NAR. In this guide you will learn who can buy, what documents you need, how to pay, what it costs, where foreign buyers actually buy, the restrictions to watch, and the steps to complete your first purchase.

Who Can Buy Property in the USA?

Almost anyone. US law does not restrict residential property ownership by nationality. You can be a non-resident living abroad, a recent immigrant, or a visa holder living in the USA — all three groups buy homes every year. In the NAR survey, 56% of foreign buyers already lived in the United States on a visa or green card, while 44% lived abroad. The buyers living abroad spent more: non-resident buyers were 44% of purchases but 52% of the dollars, because they typically shopped higher up the market.

The biggest group of foreign buyers is now Canadians, at 16% of international purchases, followed by buyers from Mexico at 14%, China at 11%, India at 9% and the United Kingdom at 4%. Chinese buyers spent the most in dollars — $7.6 billion — because they bought higher-priced homes, many of them in California.

Buying property does not give you a visa or the right to live in the USA. Ownership and immigration are completely separate. You can own a home and still need a visa to visit it, and owning a home does not help a visa application.

What You Need Before You Buy

The paperwork is simple, but you should prepare it before you start looking at homes.

A valid passport. This is your main identification for the purchase, the bank account and the closing documents.

Proof of funds. If you pay cash, the seller and the title company will ask for bank statements showing the money is yours and where it came from. Anti-money-laundering checks apply to every buyer, and large cash transfers are reported.

A US tax number (ITIN). If you earn rental income or sell the property later, you will need an Individual Taxpayer Identification Number from the Internal Revenue Service. Apply early — it can take several weeks.

A US bank account. It is not legally required, but it makes everything easier: paying the deposit, the closing costs and later the property tax and insurance. Some banks let you open an account as a non-resident with a passport and proof of address from your home country.

A local team. At minimum, a real estate agent who works with foreign buyers, a title company or real estate attorney, and a tax adviser who understands cross-border rules. In the USA the buyer usually does not pay the agent directly — the seller pays the commission — but the attorney and the tax adviser are your own cost.

How to Pay: Cash or a Foreign-National Mortgage

Nearly half of all foreign buyers pay cash. In the NAR survey, 48% of foreign buyers paid all cash, against 28% of US buyers overall. Cash is faster, simpler and avoids the mortgage rules entirely — and in a competitive market, sellers often prefer a cash offer.

If you need a mortgage, look for a foreign-national loan. These are designed for buyers without US credit history or a Social Security number. Expect:

• A deposit of 25–40% of the purchase price.
• Interest rates roughly 1–2 points above standard loans, because the lender takes more risk.
• Proof of income and assets from your home country, usually translated into English.
• A larger pile of documents than a local buyer would need — bank statements, employment letters, tax returns from your country.

Borrowing costs are high in 2026. Freddie Mac’s Primary Mortgage Market Survey put the average 30-year fixed rate at 7.11% on 12 November 2026 — the fourth weekly decline in a row, but still far above the 6.24% of a year earlier. The 15-year fixed rate averaged 6.45%. These are national averages for borrowers with excellent credit and a 20% deposit, so a foreign-national loan will usually cost more. Test your numbers at the real rate you will pay, not the headline rate. See the latest weekly rates on Mortgage News Daily’s Freddie Mac survey page.

Where Foreign Buyers Actually Buy

Foreign buyers concentrate in a few states. Florida took 20% of foreign purchases and California 19%, followed by Texas at 12%, according to the NAR 2026 report. The median purchase price for foreign buyers nationally was $465,000 — but in California it was $965,900, more than double the national figure.

Florida appeals to buyers from Canada, Latin America and Europe for its climate, beaches and large international communities. California draws buyers from China and across Asia, with the highest prices in the country. Texas attracts buyers with its lower prices, no state income tax and strong job growth in cities like Austin, Dallas and Houston.

If your goal is rental income rather than a holiday home, look beyond the famous cities. Sunbelt and Midwest markets such as Cleveland, Memphis and Indianapolis offer lower entry prices — often around $190,000 to $220,000 — and the median cap rate on single-family rentals was 6.2% in July 2026. Compare what your budget buys in New York and across the USA listings on ZameenInfo.

Costs and Taxes You Must Budget For

The purchase price is only part of the cost. Budget for these:

Closing costs. Usually 2–5% of the price: title insurance, recording fees, the attorney, the appraisal and the lender’s fees if you borrow.

Property tax. Charged every year by the local county or city, and it varies widely — roughly 0.3% of the value in Hawaii to over 2% in New Jersey and Illinois. Check the exact rate for the property, not the state average.

Homeowners insurance. Required by lenders and sensible for cash buyers too. Costs are much higher in Florida and along the Gulf Coast because of hurricanes and flooding.

FIRPTA withholding when you sell. This is the tax rule that catches most foreign sellers by surprise. Under the Foreign Investment in Real Property Tax Act, when a foreign person sells US property, the buyer must withhold 15% of the gross sale price and send it to the IRS. You can claim back any overpayment when you file a US tax return, but the money is held back at closing, so plan your cash flow around it.

Income tax on rent. Rental income is taxable in the USA. With a tax election, you can deduct expenses — mortgage interest, property tax, insurance, repairs, management — and pay tax on the net income. Without it, you may be taxed on the gross rent. Get a cross-border tax adviser involved before you buy, not after.

Estate tax. The US estate tax exemption for non-resident owners is only $60,000, far below the exemption for US citizens. Many foreign buyers hold property through a company or trust to manage this risk. This is a decision for a qualified adviser, not something to improvise.

Restrictions to Know About

There is no federal ban on foreign buyers, but the rules are tightening at state level. As of August 2026, 26 states have enacted some restriction on foreign ownership, mostly aimed at farmland, land near military bases, or buyers tied to a handful of specific governments. Residential property in cities is generally unaffected, but check the law in the exact state where you plan to buy — the rules differ state by state and they change often.

Some buildings add their own rules. Condominiums and co-operatives can restrict renting out, require board approval for a sale, or limit short lets. In New York, many co-operatives restrict renting, while condominiums are usually simpler. Always read the building’s rules before you make an offer, especially if you plan to rent the property out.

Short-term letting is another trap. Cities like New York, Los Angeles and Miami have strict rules on short lets, and many buildings ban them outright. If your plan depends on holiday rental income, confirm the city rules and the building rules in writing first.

How to Buy in 5 Steps

1. Set your budget and goal. Decide how much you can spend and whether you want a home to use, a rental income, or long-term growth. This decides your city shortlist — and whether cash or a mortgage makes sense.
2. Build your team and your paperwork. Find an agent who works with foreign buyers, a title company or attorney, and a cross-border tax adviser. Get your passport, proof of funds and ITIN application ready before you make an offer.
3. Pick your city and check the numbers. Compare prices, rents and property tax in one or two cities. Look at properties for sale and rent in the USA to see what your budget actually buys, then narrow your search on the property search results page.
4. Make an offer and open escrow. Your agent submits the offer; once accepted, you pay a deposit (earnest money) into escrow, and the title company checks the ownership history. Get a home inspection — it is your best protection against expensive surprises.
5. Close and plan the exit. At closing you sign the documents, pay the balance and the closing costs, and the deed is recorded in your name. Keep records of every cost from day one — you will need them for tax and for FIRPTA when you eventually sell.

Mistakes to Avoid

• Forgetting FIRPTA. The 15% withholding on sale catches many first-time foreign sellers. Budget for it from the day you buy.
• Buying on headline yield alone. A property showing 8% gross rent can easily be 4% net after property tax, insurance, management, repairs and empty months.
• Skipping the inspection. Photos hide damp, roof problems and bad plumbing. A few hundred dollars for an inspection can save tens of thousands.
• Ignoring the building rules. A flat you cannot legally rent out is not an investment property, whatever the listing says.
• Sending money to someone you have not verified. Use a licensed agent, a title company and an attorney. Never wire a deposit to a private individual on the basis of an online listing.
• Assuming you can live there. Buying a home gives you no visa and no right to stay in the USA. Your visits are still governed by immigration rules.

Frequently Asked Questions

Can a foreigner buy a house in the USA without a visa?

Yes. There is no visa or citizenship requirement to buy US residential property. You can buy from abroad, pay cash or use a foreign-national mortgage, and own the property outright. Owning it does not give you a visa or the right to live in the USA.

How much deposit do foreign buyers need in the USA?

Cash buyers need the full price plus closing costs. If you borrow, foreign-national loans usually require 25–40% down, at rates roughly 1–2 points above standard mortgages. In November 2026 the average 30-year fixed rate was about 7.11%, according to Freddie Mac.

What is FIRPTA and how much is withheld?

FIRPTA is the Foreign Investment in Real Property Tax Act. When a foreign person sells US real estate, the buyer must withhold 15% of the gross sale price and pay it to the IRS. You file a US tax return to claim back any amount above the tax actually owed.

Which US states do foreign buyers choose most?

Florida (20% of foreign purchases), California (19%) and Texas (12%), according to the National Association of Realtors’ 2026 report. The median foreign-buyer purchase price was $465,000 nationally, but $965,900 in California.

Do I need a US bank account to buy property?

It is not legally required, but it makes the purchase far easier — paying the deposit, closing costs, property tax and insurance all run through it. Many banks open accounts for non-residents with a passport and proof of address.

Can I rent out a property I buy in the USA as a foreigner?

Yes. Rental income is taxable in the USA, and you will generally need an ITIN to file a return. With the right tax election you can deduct expenses and pay tax on net income. Check the city and building rules on short lets before you rely on holiday rental income.

Start Looking at Real Properties

The rules are clear and the market is open — the next step is seeing what your money buys. Browse live properties for sale and rent in the USA, compare prices in Florida, California and Texas, and check the rents before you commit. If you also want to compare with the UK, read our guide to the best rental cities in the USA and UK. You can search everything on ZameenInfo.