International buyers represent 30-40% of Miami's luxury market and 20-30% of NYC's. Here's everything you need to know about purchasing US luxury real estate as a foreign national in 2025.
Can You Buy as a Non-US Citizen?
Yes! No visa or residency required to own US real estate. However, financing and tax implications differ from US citizens.
Financing for International Buyers
Options:
- All-cash: Simplest and most common (60% of international purchases)
- Foreign national mortgages: 30-40% down required, higher interest rates (+0.5-1%), proof of income in home country
- US bank account required for monthly payments
- ITIN (Individual Taxpayer ID) needed for financing
LLC vs. Personal Ownership
LLC Benefits:
- Privacy (name not on public record)
- Estate planning advantages
- Potential tax benefits
- Easier to transfer ownership
- Cannot get homestead exemption
- Some buildings prohibit LLC ownership
- Annual LLC maintenance costs
- More complex financing
Tax Implications
Property taxes: Same as US residents (1-2% of value annually)
FIRPTA (when selling): 15% withholding on sale proceeds for IRS. File to get refund if actual tax is lower. Can structure sales to minimize impact.
Rental income: Taxed at 30% unless tax treaty exists with your country. Can elect to file US tax return and pay at lower graduated rates (often better).
Estate taxes: Significant for large estates. Consult estate planning attorney for foreign nationals.
Required Documentation
To purchase:
- Valid passport
- Proof of funds (bank statements)
- Reference letters
- ITIN or SSN (if financing)
- Certified translation of foreign documents
Opening US Bank Account
Required for purchases and ongoing expenses. Most banks require in-person visit. Bring passport and proof of address. HSBC and Citibank are international-buyer friendly.
Miami vs NYC for International Buyers
Miami Advantages:
- More international-buyer friendly
- Condo-focused (easier than NYC co-ops)
- No state income tax
- Latin American proximity
- Year-round weather
NYC Advantages:
- Global business center
- More established market
- Better wealth preservation
- Cultural institutions
- Educational opportunities
Common Mistakes to Avoid
Don't skip legal review. Don't assume home country laws apply. Don't forget about exit strategy. Don't ignore tax implications. Don't buy without visiting in person. Don't use home country financing (US financing is better if available).
2025 Outlook for International Buyers
Strong dollar makes US real estate relatively affordable for Euro and GBP buyers. Political stability and property rights continue attracting foreign investment. Miami benefits from Latin American buyers. NYC attracts European and Asian buyers.
Team DOM50 specializes in international buyer transactions with multilingual support and global network connections. We handle the complexities so you can focus on finding your perfect luxury property.
