INTERNATIONAL BUYER

Popular Locations: Major metropolitan areas like Miami, Fort Lauderdale, Boca Raton, West Palm Beach, are particularly attractive to international buyers. Cities with strong economic opportunities and cultural amenities also draw foreign interest.

Investment Opportunities: Many international buyers view U.S. real estate as a stable investment. Properties in high-demand areas can offer good rental yields and long-term appreciation.

Property Types: Research the types of properties available and identify what best suits your needs—whether residential, detached homes, townhomes, condominiums, commercial properties, or vacant land to build on. Also properties with a homeowners association, as they have rules and regulations, fees and assessments, rental restrictions, among others.

Insurance Needs

Property Insurance: Purchase adequate insurance coverage for your property, including homeowner’s insurance and, if applicable, flood or earthquake insurance depending on the location.

Title Insurance: Consider title insurance to protect against any issues with the property's title that could arise.

Closing

Closing Costs: Be aware of the closing costs associated with purchasing U.S. property, including attorney fees, transfer taxes, and other administrative expenses.

Escrow and Settlement: Understand the escrow process and ensure all legal and financial requirements are met before closing the deal.

Legal Considerations

Title and Ownership: Ensure clear title and understand the types of ownership available (e.g., joint tenants, tenants in common). Conduct thorough due diligence.

Legal Representation: Engage a U.S. attorney experienced in international real estate transactions to navigate legal requirements and protect your interests.

Visa and Residency Considerations: While owning property in the U.S. does not grant residency or visa status, some buyers use real estate investments as part of a broader strategy to secure visas or residency through programs like the EB-5 Investor Visa, which requires a significant investment in U.S. businesses or real estate.

Financing: Funding: Many foreign buyers purchase U.S. property with cash, but some may need financing. Research mortgage options available to non-resident buyers, which may have different terms and conditions.

Credit History: U.S. lenders may require a U.S. credit history or a higher down payment. Building a relationship with international-friendly banks can be beneficial.

Legal and Tax Implications: International buyers need to be aware of legal and tax implications, including property taxes, income taxes on rental income, and potential estate taxes. It’s often advisable to consult with legal and tax professionals who are familiar with cross-border transactions.

Banking: Set up a U.S. bank account for transactions related to the property, including tax payments and utility bills.

FIRPTA withholding is a U.S. tax law that applies to foreign buyers and investors who sell their real estate in the United States. Typically they pay between 10% to 15% of the sales price. Please consult an accountant.

Exemptions: There are certain exemptions and exceptions to FIRPTA withholding. For example:

Personal Use: If the property is sold for $300,000 or less and the buyer intends to use it as their primary residence, FIRPTA withholding may not apply.

Reduced Rate: In some cases, the withholding rate can be reduced or eliminated if the seller can provide a certification from the IRS that a lower rate applies or if the sale qualifies for an exception.

By addressing these considerations, foreign buyers can make informed decisions, comply with U.S. regulations, and successfully navigate the U.S. real estate market.

Overall, international home buyers contribute significantly to the U.S. real estate market, bringing diverse perspectives and investment capital.