How International Buyers Navigate
the U.S. Real Estate Market

For buyers and investors coming from outside the United States, the hardest part of acquiring U.S. property is rarely the property itself. It's the system around it — ownership structures, financing as a non-resident, tax treatment on exit, and a closing process that works very differently from most other countries.

This guide is written for the international buyer who has already decided that the U.S. market makes sense, and now wants to understand how it actually works before committing capital. It does not cover whether you can buy or the earliest "first steps" questions — it covers what a serious buyer needs to think through once the decision is real.

Foreign Ownership: The Starting Point

There is no citizenship or residency requirement to own real estate in the United States. A foreign national can hold U.S. property in their personal name or through an entity, with no special government approval. That openness is one of the reasons the U.S. attracts international capital so consistently.

The decisions that follow — how to hold the asset, how to finance it, and how to plan for tax on income and on eventual sale — are where most of the real complexity lives, and where good guidance matters most.

How the U.S. Buying Process Differs

If your reference point is a civil-law country where a notary sits at the centre of every transaction, the U.S. process will feel unfamiliar. The key differences:

• Escrow, not a notary. A neutral third party (an escrow or title company) holds funds and documents and coordinates closing. There is no single notarial authority validating the deal.
• Title insurance. Rather than relying on a central registry guarantee, buyers purchase title insurance to protect against defects in ownership history. It is a one-time cost at closing.
• Inspections and contingencies. Contracts typically include inspection, appraisal and financing contingencies — windows in which a buyer can renegotiate or withdraw. Understanding these protects you.
• Closing timeline. An all-cash purchase can close in roughly 2–3 weeks; a financed purchase usually takes 30–45 days, longer for foreign national loans that require additional documentation.
• Remote closing. You generally do not need to be physically present. Documents can be signed remotely, often before a U.S. consulate or an authorised official, which is why many international buyers complete a purchase without travelling for closing.

Personal Name vs LLC: How to Hold the Asset

One of the most consequential early decisions is the ownership structure. Many international investors hold U.S. property through a Limited Liability Company (LLC) rather than in their personal name. The trade-offs:

Consideration	Personal Name	LLC
Setup cost & admin	None — simplest path	Formation + annual filing and registered-agent costs
Liability separation	Personal exposure to property liabilities	Separates the asset from personal liability
Privacy	Owner name on public record	Greater privacy depending on state of formation
Financing	Wider range of foreign national loan options	Often routed to DSCR / portfolio lenders
Estate planning	Direct exposure to U.S. estate tax rules	Can be combined with broader structuring for estate efficiency
Best suited to	A single primary-use or lifestyle property	Investment assets, multiple properties, or longer-term portfolios

There is no universally "correct" answer — the right structure depends on whether the property is for personal use or investment, how many assets you intend to hold, and your broader tax and estate situation. This is precisely the kind of decision worth getting right before you buy, not after.

Financing as a Foreign National

International buyers who don't pay all-cash typically use a foreign national mortgage — a loan product designed for borrowers without a U.S. credit profile or income. What to expect:

• Loan-to-value of roughly 60–75%. Larger down payments are standard; lenders price for the additional risk of a non-resident borrower.
• Documentation differs. Rather than a U.S. credit score, lenders often rely on international bank references, reserves, and proof of funds. The paperwork is heavier and timelines longer.
• DSCR loans for investors. Debt-Service-Coverage-Ratio loans qualify the property's rental income rather than the borrower's personal income — a common route for investors buying through an LLC.
• Rate premium. Foreign national loans generally carry higher rates than loans to U.S. residents. That premium should be factored into any yield calculation.

FIRPTA: What Happens When You Sell

This is the single most overlooked issue for international owners. Under the Foreign Investment in Real Property Tax Act (FIRPTA), when a foreign national sells U.S. real estate, the buyer is generally required to withhold 15% of the gross sale price — not 15% of the profit — and remit it to the IRS.

That withholding is a prepayment against your actual U.S. tax liability, and the difference can often be recovered, but it ties up significant capital and requires planning. In some cases a withholding certificate can reduce the amount held at closing. The practical takeaway: FIRPTA should be part of your thinking on the way in, not a surprise on the way out.

Tax & Estate Considerations

Owning U.S. property creates ongoing U.S. tax obligations that exist regardless of where you live:

• Rental income is generally taxable in the U.S., with deductions available for expenses, depreciation and financing costs — the net position is often more favourable than the gross numbers suggest.
• U.S. estate tax exposure is the issue most international owners underestimate. Non-residents can face U.S. estate tax on U.S.-situated assets above a relatively low threshold — one of the main reasons structuring is discussed early.
• Treaty positions between your home country and the U.S. can change the analysis significantly, which is why generic advice rarely fits a specific situation.

Brighthold does not provide tax or legal advice — but we help you understand which questions to put to the right professionals, and we connect you with U.S. attorneys and accountants who work with international owners regularly.

Ongoing Costs & Remote Ownership

For owners who won't live in the property, the carrying costs matter as much as the purchase price:

• Property management for remote owners typically runs 8–12% of gross rental income.
• HOA fees in many condominium developments can be significant and should be verified before purchase.
• Insurance in Florida markets includes hurricane and flood considerations that add to holding costs.
• Property taxes vary widely by state — Texas has no state income tax but higher property tax rates, while Florida's profile is different. The market you choose changes the math.

Where International Buyers Typically Start

Across the markets Brighthold operates in, three tend to be the natural entry points for international buyers — for different reasons:

• Miami is the lowest-friction gateway: deep international buyer pool, strong Spanish-language penetration and established legal infrastructure. It suits buyers prioritising capital preservation and exit liquidity over immediate yield.
• Orlando balances accessible entry pricing with solid rental fundamentals and short-term-rental optionality — useful for buyers who want some personal-use flexibility alongside income.
• Houston is the strongest cashflow case: diversified economy, no state income tax and entry pricing that keeps yields compelling for investors focused on income from day one.

This article is general information for international buyers and investors, not legal, tax or financial advice. Tax treatment, financing terms and ownership structures depend on your specific circumstances and home-country treaty position. Brighthold Realty connects clients with qualified U.S. attorneys, accountants and lenders for advice on their individual situation.