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Foreign National Luxury Real Estate Buyer Guide

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Foreign National Buyer Data

Foreign nationals purchased approximately $42 billion in US residential real estate in the 12 months ending March 2025, with luxury properties disproportionately represented — international buyers account for an estimated 15–25% of all luxury transactions above $5M in Florida, New York, and California. The foreign national buyer in 2026 operates in a legal and regulatory environment that has been materially tightened since 2020: FinCEN Geographic Targeting Orders require all-cash luxury purchases above defined thresholds in targeted markets to be reported with beneficial ownership information; state-level restrictions prohibit or limit purchases by nationals of designated adversary countries in Florida, Texas, and other states; CFIUS review applies to agricultural land purchases near military installations; and FIRPTA imposes a 15% gross withholding obligation on the buyer when the foreign national eventually sells. Navigating this environment correctly — entity structure for the purchase, ITIN mortgage financing options, FinCEN compliance, state law restrictions, and long-term tax planning for the eventual disposition — requires specialists who have closed foreign national luxury transactions in the specific market and understand the current regulatory landscape, not the one that existed five years ago.

Foreign national luxury purchases require entity structure planning, FinCEN GTO compliance, state-level foreign buyer restriction assessment, ITIN mortgage or cash financing, and FIRPTA disposition planning. Own Luxury Homes® verifies luxury specialists with documented closing history on foreign national luxury real estate transactions in FinCEN-targeted markets. Request a verified specialist introduction →

Foreign Buyer Legal Requirements

FinCEN Geographic Targeting Orders — Beneficial Ownership Reporting in Luxury Markets. The Financial Crimes Enforcement Network (FinCEN) issues Geographic Targeting Orders (GTOs) requiring title insurance companies in designated markets to collect and report beneficial ownership information for all-cash luxury real estate purchases above defined dollar thresholds. The current GTO markets include: Miami-Dade, Broward, and Palm Beach counties in Florida; Manhattan, Brooklyn, Queens, Bronx, and Staten Island in New York; Los Angeles, San Diego, San Francisco, San Mateo, and Santa Clara counties in California; King County (Seattle) in Washington; Bexar County (San Antonio) and Dallas County in Texas; and Las Vegas in Nevada. The GTO threshold varies by county but is generally $300,000–$1M depending on the market. GTO compliance requires the title company to collect: the buyer’s or purchasing entity’s name, address, and identification; the beneficial owner’s name, date of birth, address, and identification document if the purchase is through an LLC or trust; and the source of funds documentation. A foreign national purchasing a $5M Miami Beach condominium through a domestic LLC is subject to GTO reporting — the title company will request the beneficial owner’s passport and identification as part of the closing package. GTO non-compliance exposes the title company to sanctions and may delay closing. Florida Verified Specialists →

Florida SB 264 and State Foreign Buyer Restrictions — Country-Specific Prohibitions. Florida’s SB 264 (effective July 1, 2023) prohibits nationals of designated “foreign countries of concern” — China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria — from purchasing real property within 10 miles of military installations or critical infrastructure. Chinese nationals are further prohibited from purchasing any agricultural land in Florida, and from purchasing commercial real estate within these restricted zones. The practical impact: a Chinese national cannot purchase a home within 10 miles of Eglin Air Force Base, MacDill Air Force Base, Kennedy Space Center, or dozens of other Florida military installations. Texas HB 17 (2023) similarly restricts purchases by nationals of China, Russia, Iran, and North Korea near critical infrastructure. A foreign national from a designated country must verify that any targeted property is outside the restricted zone before proceeding with an offer. Violations are subject to civil penalties and forced divestiture. The specialist’s pre-offer due diligence on any Florida or Texas luxury transaction involving a buyer from a designated country must include a GIS proximity check against the restricted zone map before the offer is written. Florida Verified Specialists →

CFIUS Review — Agricultural Land Near Military Installations. The Committee on Foreign Investment in the United States (CFIUS) has jurisdiction over foreign national purchases of US real estate, with particular scrutiny applied to: agricultural land, land near US military installations (including airports with dual military use), and properties with proximity to sensitive government facilities. CFIUS review of real estate transactions became significantly more aggressive after the 2022 FIRRMA regulations expanded CFIUS authority. A Chinese national’s purchase of a 500-acre ranch in Montana near Malmstrom Air Force Base was blocked by CFIUS in 2023. Foreign nationals from any country (not just designated adversary nations) who are purchasing agricultural land, ranch properties, or land within proximity to military installations should obtain a CFIUS analysis from a national security attorney before executing a purchase contract — because CFIUS review can be initiated retroactively and forced divestiture is the remedy. Montana Verified Specialists →

ITIN Mortgage Financing — Jumbo Loans for Foreign Nationals Without a Social Security Number. Foreign nationals who have a US Individual Taxpayer Identification Number (ITIN) but no Social Security Number — because they are not US citizens or permanent residents — can qualify for ITIN mortgage loans from portfolio lenders and private banks. ITIN jumbo program parameters in 2026: 30–40% down payment typically required (higher than standard jumbo due to the perceived risk), 12–24 months PITI reserves in US bank accounts, documentation of income from the home country (tax returns, employment letters, bank statements in English or certified translation), and the property must be purchased as a second home or investment property (ITIN lenders do not extend primary residence loans because the borrower’s primary residence is outside the US). Loan amounts up to $3M–$5M are available from specialty ITIN lenders. Super jumbo ITIN financing above $5M is available through private banks with international banking relationships — HSBC Private Bank, Citi Private Bank, and Santander Private Banking serve international UHNW clients with US luxury property financing. Foreign nationals from countries with US tax treaty relationships may have additional qualification options. Florida Verified Specialists →

Entity Structure for Foreign National Purchases — LLC, Corporation, or Individual Name. Foreign nationals purchasing US luxury real estate must choose an entity structure that addresses: privacy (limiting the connection between their name and the property in public records), liability protection (shielding non-US assets from potential US litigation arising from the property), estate planning (how the property transfers at death without triggering US estate tax on the full value), and tax efficiency (structuring the ownership to minimize US income tax on rental income and capital gains on disposition). US estate tax exposure for foreign nationals: non-resident aliens are subject to US estate tax on US-sited assets (including real property) above $60,000 — the estate tax exemption for non-resident aliens is $60,000, compared to $15 million for US citizens under the OBBBA. On a $5M US property held individually by a non-resident alien, the estate tax at death is approximately $2M — 40% on $4.94M above the $60,000 exemption. The standard estate tax planning structure for non-resident aliens: hold the US property through a domestic LLC, whose membership interests are held by a foreign corporation. At death, the foreign corporation’s shares pass outside the US estate tax system — the US property is owned by the LLC which is owned by the foreign corporation, and the foreign corporation’s shares are not US-sited property for estate tax purposes. New York Verified Specialists →

FIRPTA Pre-Planning — The 15% Withholding the Foreign Buyer Becomes the Foreign Seller. Every foreign national who purchases US luxury real estate is also a future foreign seller — and the FIRPTA 15% gross withholding requirement applies at disposition regardless of how long the property has been held. Pre-planning at purchase for the eventual FIRPTA event: establish a US ITIN before closing (required for the FIRPTA withholding certificate application), document the adjusted cost basis from day one (purchase price plus capital improvements, documented with receipts), and select an entity structure that minimizes the withholding base. The withholding certificate (Form 8288-B) reduces withholding from 15% of gross price to the estimated actual tax liability — but requires a 60–90 day IRS processing window. On a $5M property held through an LLC, the FIRPTA withholding at disposition applies to the LLC interest sale at 15% gross if the LLC is foreign-owned — or the buyer is the withholding agent on the real property if the LLC is domestic. The entity structure chosen at purchase determines the FIRPTA mechanics at disposition. Florida Verified Specialists →

The Bottom Line

Foreign national luxury real estate investment in the United States has never been more regulated or more strategically complex. FinCEN GTO beneficial ownership reporting, state-level country-specific restrictions, CFIUS agricultural land oversight, ITIN financing parameters, non-resident alien estate tax exposure, and FIRPTA pre-planning are all closing-level decisions that must be addressed before the offer is written — not discovered during the title search or at the closing table.

FAQ

What are FinCEN Geographic Targeting Orders and which luxury markets are covered?

FinCEN GTOs require title companies in designated markets to collect and report beneficial ownership information for all-cash luxury purchases above dollar thresholds. Markets include Miami-Dade, Broward, and Palm Beach in Florida; all five NYC boroughs; Los Angeles, San Diego, San Francisco, San Mateo, and Santa Clara in California; King County Washington; Bexar and Dallas counties in Texas; and Las Vegas. Thresholds range from $300,000 to $1M depending on county. Purchases through LLCs require disclosure of the beneficial owner's identity.

What restrictions does Florida SB 264 impose on foreign national buyers?

Florida SB 264 prohibits nationals of designated foreign countries of concern (China, Russia, Iran, North Korea, Cuba, Venezuela, Syria) from purchasing real property within 10 miles of military installations or critical infrastructure. Chinese nationals are additionally prohibited from purchasing agricultural land in Florida. Texas HB 17 similarly restricts purchases near critical infrastructure. Specialists must perform a GIS proximity check before writing offers for buyers from designated countries.

What is the US estate tax exposure for a foreign national owning US real estate?

Non-resident aliens are subject to US estate tax on US-sited assets above $60,000. The estate tax exemption for non-resident aliens is $60,000 compared to $15 million for US citizens under the OBBBA. On a $5M US property held individually by a non-resident alien, the estate tax at death is approximately $2M. The standard planning structure: hold the US property through a domestic LLC whose membership interests are held by a foreign corporation, placing the shares outside the US estate tax system.

What ITIN mortgage financing is available for foreign national luxury buyers?

ITIN jumbo programs are available from portfolio lenders with 30 to 40 percent down payment, 12 to 24 months PITI reserves in US accounts, and income documentation in English or certified translation. Loan amounts up to $3M to $5M from specialty ITIN lenders. Super jumbo ITIN financing above $5M is available through private banks with international operations including HSBC Private Bank, Citi Private Bank, and Santander Private Banking.

Primary Markets

• Best Luxury Real Estate Agents in Florida
• Best Luxury Real Estate Agents in New York
• Best Luxury Real Estate Agents in California
• Best Luxury Real Estate Agents in Texas
• Best Luxury Real Estate Agents in Washington

Related National Guides

• FIRPTA Foreign Seller Withholding Guide
• EB-5 Visa and US Residency Real Estate Guide
• Geopolitical Safe Haven Real Estate Guide
• Luxury Real Estate Closing Costs by State Guide

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