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ITIN for Foreign Buyers: How to Get a Tax ID to Buy Property in the USA

An ITIN — Individual Taxpayer Identification Number — is the IRS-issued tax identification number for people who need to file US taxes but are not eligible for a Social Security Number. For foreign nationals buying or selling US property, it is almost always required: for the mortgage application, for FIRPTA withholding compliance, and for annual US tax returns if the property generates income. Apply before you start the buying process. The 7–11 week processing timeline means discovering you need one at closing is a problem.

What an ITIN Is and Is Not

An ITIN is a 9-digit tax processing number issued by the IRS. It begins with the number 9. What it IS: a tax identification number for filing US tax returns and for certain financial transactions. What it IS NOT: (1) It is not a Social Security Number and cannot be used instead of an SSN for employment. (2) It is not a work authorization. (3) It does not create any immigration status. (4) It does not grant any right to social security benefits. The ITIN’s sole purpose is tax administration. For real estate purposes, it enables: mortgage applications at foreign national lenders, FIRPTA withholding return filing (Form 8288), annual US income tax returns (Form 1040-NR for rental income), and FBAR filing if required.

How to Apply: Form W-7 Step by Step

(1) Complete IRS Form W-7: the Application for IRS Individual Taxpayer Identification Number. Available at IRS.gov. (2) Select the reason code: code “h” applies to most foreign property buyers: “Exception — not required to file a US federal tax return” combined with a specific real estate transaction. (3) Attach original identity documentation: a valid passport is the only document that satisfies all identity and foreign status requirements on its own. Other documents (national ID, birth certificate + foreign driver’s license) require combinations. (4) Attach a tax return or exception document: for a real estate purchase, the purchase contract can serve as the exception document under the real estate exception. (5) Submit to IRS or through a Certified Acceptance Agent: mail directly to IRS (Austin, TX address) or use a Certified Acceptance Agent (CAA) who certifies documents without requiring originals to be mailed. Using a CAA is strongly recommended to avoid sending original passport by mail. (6) Processing time: 7–11 weeks by mail. In-person at an IRS Taxpayer Assistance Center may be faster but appointment required.

When to Apply: The Timeline That Matters

Apply for your ITIN as soon as you decide to purchase US property — not when you find a property, not when you make an offer. The timing matters: (1) Mortgage pre-approval: most foreign national lenders need an ITIN on file before issuing pre-approval. (2) FIRPTA for the seller: if you’re buying from a foreign seller, the seller must have an ITIN for the withholding return. Confirm this before closing. (3) Post-purchase rental: if you intend to rent, the first US tax return requires the ITIN by the filing deadline. The buyer who applies at the start of the search process has the ITIN ready when needed. The buyer who applies at contract signing may not receive it before closing.

International Buyer Resources: Foreign National Mortgage — ITIN Guide — US Estate Tax — Does Buying Give Residency? — FBAR Guide — Rental Income — Halal Mortgage — FIRPTA Guide

Frequently Asked Questions

What is an ITIN and do I need one to buy property in the USA?

An Individual Taxpayer Identification Number (ITIN) is an IRS tax ID for people without a Social Security Number. Foreign nationals buying US property almost always need one for the mortgage application, FIRPTA compliance, and tax filing. Apply using IRS Form W-7.

How long does it take to get an ITIN?

7-11 weeks by mail. Faster through an IRS Taxpayer Assistance Center in-person. Using a Certified Acceptance Agent (CAA) is recommended to avoid mailing original documents.

Can I buy property in the USA without an ITIN?

Cash purchases may proceed without an ITIN in some cases, but you will need one for FIRPTA compliance when you sell. Most foreign national mortgage lenders require an ITIN before issuing pre-approval. Apply early — before you start searching.

Do I need an ITIN if I'm paying cash for US property?

You will need one eventually for FIRPTA withholding compliance when you sell, and for US tax filing if the property generates rental income. Apply at the time of purchase even if not immediately required.