Can Foreigners Buy and Own Land in United States? The short answer is yes! But with a few considerations that we will explain in details below. Or watch our video!
Buying Land as a Foreigner
Buying property in the USA is not a problem for foreigners. You do not need a green card, a particular type of visa, or even US citizenship to be eligible to do so. Anyone may buy and own property in the United States, regardless of citizenship. There are no laws or restrictions that prevent any individual of any foreign citizenship from purchasing or owning property in the U.S.
Payment Options as a Foreigner
It’s easiest if you’re paying cash. Normally your local bank will be able to do an international wire transfer for you. You would not need to worry about foreign exchange conversion. Your local bank will be able to convert your local currency to U.S. Dollar. Slightly different from U.S. domestic wire transfer that base on bank’s routing number. International wire transfer relies on SWIFT code. SWIFT code identifies the destination bank, country, location, and branch. When you need to do an international wire transfer, remember to ask for the destination SWIFT code.
If you’re seeking financing to purchase real estate in the U.S. as a non-citizen, getting a mortgage is the challenging part. Typically U.S. banks are regulated at the state level, and they rarely provide mortgages to foreigners.
At ELEGMENT LAND, we normally can provide owner finance for selected countries’ foreign buyers.
Do foreign buyers have to pay extra stamp duties?
No. There are no extra stamp duties imposed on foreigners buying US property. Unlike Hong Kong, Singapore, London, Vancouver, Toronto, Sydney and Melbourne, which all add between 7% – 30% additional tax on foreign buyers. The United States does not penalize foreigners when buying US property. In fact, many foreign nationals purchase residential lands and vacation houses in the United States, and there are many wealthy foreign investors who purchase investment property such as multi-unit apartments or condos, single family homes, and even business properties such as shopping malls.
Foreigners pay the same stamp duty as U.S. citizens. Furthermore, according to United States Internal Revenue Service (IRS) Publication 530 (2021), Tax Information for Homeowners (Link), the stamp duty (property transfer tax) can be applied to the cost basis of the property when you sell, reducing your future tax liability.
Who do I work with on buying U.S. properties?
As a foreign buyer, you can choose to working with a real estate agent, or purchase directly from owners. You want to work with companies and teams who won’t push you beyond what you’re comfortable offering or rush you into making a bad decision is key. Elegment Land own all the land parcels they sell, and always have buyers’ best interests at heart. Contact us, if you are a foreigner and wanted to buy a piece of American Land!
Check out our available land listing: https://land.elegment.com/