How to Invest in Real Estate in the United States as a Foreigner

1. Introduction

Acquiring property in the United States remains a dream and a solid investment strategy for foreigners. Whether to diversify income, generate rental revenue, or as a financial haven, the U.S. real estate market offers unmatched opportunities, even in 2025.

According to the National Association of Realtors (NAR), home sales are expected to grow by 4% this year if mortgage rates stabilize, with states like Florida and Texas emerging as key destinations.

This guide will explore how foreigners can buy a house in the U.S., the requirements, and the benefits of doing so through an LLC (Limited Liability Company), along with the latest real estate market data.

2. Can a Foreigner Buy a House in the U.S.?

Absolutely! The U.S. imposes no significant legal barriers for foreigners to purchase property. In 2025, international investors are capitalizing on the growth of metropolitan areas like Miami, Austin, and Los Angeles, where real estate prices are stable with potential for growth.

Reasons to Invest in U.S. Real Estate:

1. Global Diversification: Investing in the U.S. helps diversify your portfolio in a highly stable market.
2. Safe Haven Asset: U.S. properties are seen as secure assets during global economic uncertainty.
3. Passive Income Generation: Properties in key locations generate competitive short- and long-term rental income.

3. Requirements for Foreigners to Buy a House in the U.S.

While citizenship or residency is not required, there are certain documents and steps that foreigners must follow to purchase property in the U.S.:

1. Identification and Passport
   A valid passport is required. In some cases, banks or financial institutions may request additional information to comply with client identification regulations.
2. Taxpayer Identification Number (ITIN)
   While a Social Security Number (SSN) is not mandatory to buy property, it’s recommended to obtain an ITIN (Individual Taxpayer Identification Number) if you plan to finance the purchase or generate income from the property (e.g., through rentals). This number allows you to pay property-related taxes or report income.
3. Payment Method
   Most foreigners buy properties in the U.S. with cash since obtaining a mortgage can be more challenging without a U.S. credit history. However, some financial institutions offer mortgage loans to foreigners, often requiring a larger down payment (30% or more).
4. Legal and Tax Advice
   It’s essential to work with a real estate attorney and a tax advisor to understand the legal and tax implications. Foreigners are subject to laws like FIRPTA (Foreign Investment in Real Property Tax Act), which regulates tax withholding on profits from the sale of U.S. properties.

4. Why Buy a House in the U.S. Through an LLC?

Creating an LLC to purchase properties can be your best decision in 2025, as it simplifies the process and offers multiple benefits.

Benefits of an LLC:

1. Asset Protection: Separates your personal assets from the risks associated with property ownership.
2. Tax Advantages: An LLC allows you to deduct operational costs, optimizing your taxes.
3. Flexible Management: Simplifies property transfer and enhances owner privacy.
4. Credibility: Increases your reputation with financial institutions.

5. Real Estate Market Insights for 2025

The NAR report highlights that:

• Florida leads in residential property sales due to internal and international migration.
• California shows resilience in premium areas like Los Angeles, where housing demand exceeds supply.
• Texas continues to attract investors with favorable tax policies and stable prices.

Explore more about ideal investment locations:

• Best Locations for Real Estate in the U.S.
• Investing in Real Estate in Florida with an LLC

6. How to Create an LLC to Buy Property

1. Select a State: Florida, Delaware, and Wyoming are popular for their simplicity and tax benefits.
2. Register the LLC: File the Articles of Organization and designate a registered agent.
3. Obtain an EIN: An Employer Identification Number is required to open bank accounts and manage taxes.
4. Open a Bank Account: Facilitates the management of property-related income and expenses.

7. Conclusion

Buying a house in the United States as a foreigner is an accessible and lucrative opportunity. However, protecting your investment through an LLC offers benefits ranging from asset protection to tax optimization.

Discover more about creating an LLC and maximizing your benefits with our complete guide:

• Advantages of Acquiring Properties in Miami with an LLC

If you’re considering investing in real estate in 2025, now is the perfect time to act. Contact us for a free consultation with our team of experts.