Whether a foreign person may acquire a particular U.S. property depends on the buyer, property, state, and federal rules; do not assume universal eligibility. Federal reporting and national-security review may apply, and the National Agricultural Law Center’s current state-law resource documents that state restrictions differ and continue to change. Tax treatment also depends on facts such as residency status, entity structure, use, and disposition. Confirm current rules before sending funds or signing a contract.
Start with the buyer, property, and jurisdiction
Identify the buyer’s citizenship and tax status, every beneficial owner, the property’s state and county, whether the land is agricultural, and whether it is near a sensitive federal site. State restrictions can distinguish agricultural land from other real estate and can change. Local zoning, private covenants, access, and permitting also control what the buyer may do after closing.
31 C.F.R. Part 802 defines the covered-real-estate framework, including relevant real-estate rights, covered locations, and exemptions. Whether a filing is required, optional, or outside CFIUS jurisdiction is fact-specific; use current Treasury filing instructions and qualified counsel for the particular buyer and property.
Texas rules for foreign buyers
Texas added its own rule in 2025. Texas Property Code Subchapter H bars governments, companies and certain individuals connected to China, Iran, North Korea and Russia from buying Texas real property, with exceptions that include U.S. citizens, lawful permanent residents and some homestead purchases. The Texas Attorney General enforces the law. If you are not a U.S. citizen or permanent resident, check the current statute and get legal advice before you sign a contract.
Agricultural land may trigger separate reporting
The Agricultural Foreign Investment Disclosure Act can require foreign persons to report covered interests in U.S. agricultural land. The AFIDA regulation’s definition of “any interest” excludes leaseholds of less than 10 years, meaning longer leaseholds may be covered when the other definitions apply. The USDA Farm Service Agency’s portal is the federal reporting channel. Federal reporting does not replace state-law review, and filing does not establish that a purchase is permitted under every applicable law.
Choose a payment and ownership structure carefully
Cash, institutional financing, and seller financing can each be possible, but none is automatic. Compare the structures in the land-purchase financing methods guide, then obtain current transaction-specific terms. Banks and payment providers apply identity, sanctions, source-of-funds, anti-money-laundering, exchange, and wire procedures. A foreign buyer may face different underwriting because U.S. credit history, income documentation, collateral, or a domestic account is limited.
Do not create an LLC, partnership, trust, or corporation solely from a marketing suggestion. Entity choice can affect liability, reporting, estate planning, tax, financing, and later transfers. Obtain coordinated U.S. legal and tax advice, plus advice in the buyer’s home country where appropriate. Never rely on emailed wire instructions without independently confirming them through a trusted closing contact.
Budget beyond the purchase price
Closing costs vary by state, county, contract, lender, and service provider. Ask the title company, escrow agent, or closing attorney for a written estimate covering title work, recording, transfer taxes if any, survey, legal fees, lender charges, and prorations. After closing, budget for property taxes, association assessments, insurance, maintenance, compliance, and any utility or access work.
Buying does not provide a visa, immigration status, or a right to occupy land in a way local rules prohibit. Use the general parcel and buildability screen to organize questions about legal and physical access, boundaries, title exceptions, mineral rights, utilities, water and wastewater, environmental and flood constraints, zoning or other land-use controls, deed restrictions, and permits for the exact intended use.
Plan for tax reporting and a future sale
U.S. federal income-tax residency is not the same as immigration status. Rental, business, agricultural, and sale activity can create different filing and withholding consequences. The IRS FIRPTA guidance explains that a buyer generally must withhold when acquiring a U.S. real-property interest from a foreign seller, subject to exceptions and adjusted procedures. FIRPTA is primarily relevant when a foreign person disposes of U.S. real property; it should not be described as a simple purchase fee.
Use a controlled closing process
Before committing funds, verify the seller and current recorded title, review the contract and title commitment, confirm the closing agent’s licensing or authority, and document conditions and deadlines. International buyers should allow time for identity checks, fund transfers, translations, notarization or apostille needs, and tax identification issues. Requirements vary, so the closing team should confirm what is needed for that buyer and jurisdiction.
This overview is educational, not legal, tax, immigration, or investment advice. Current federal, state, and local rules and the transaction documents control.
Legal sources reviewed August 26, 2026: National Agricultural Law Center state-law resource; 31 C.F.R. Part 802 and Treasury CFIUS real-estate instructions; 7 C.F.R. § 781.2 and the USDA AFIDA reporting-portal announcement; and IRS FIRPTA guidance. Each linked source in this set returned current usable content on that date.
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Official resources
- U.S. Treasury: CFIUS Real Estate Instructions
- USDA FSA: AFIDA Reporting Portal
- IRS: FIRPTA Withholding
- Electronic Code of Federal Regulations: CFIUS real-estate regulations, 31 C.F.R. Part 802
- Electronic Code of Federal Regulations: AFIDA definitions, 7 C.F.R. § 781.2
- National Agricultural Law Center: Foreign ownership of agricultural land: state-law resource
- Texas Property Code Chapter 5, Subchapter H: Purchase of real property by certain foreign individuals or entities
- Texas Real Estate Research Center: New Bill Limits Foreign Real Estate Ownership in Texas (SB 17)
