Buying US real estate from abroad: the 5 decisions before closing
You can buy property in the United States without residency, without a special visa and without traveling — the market is open. What's not included is the structure. And the difference between a well-built purchase and a future problem is five decisions made BEFORE closing.
🌐 También en español: Comprar propiedad en USA siendo extranjero
1 · Your own name or an LLC?
Your own name is simpler and sometimes easier for a mortgage — but it exposes you on two fronts: if a tenant is injured and sues, your entire personal wealth answers; and at death, the property enters the estate tax base with only USD 60,000 of exemption. An LLC separates liability and organizes ownership. The finer choice (one simple LLC or layered structures) depends on the size of the estate.
2 · Financed or cash?
Loans for foreigners without US credit history exist: DSCR loans (debt service coverage ratio), underwritten on the property's rental flow instead of your score. Expect larger down payments (typically 25-40%) and higher rates than residents get. Cash is simpler; financing can improve returns and preserve liquidity. It's arithmetic, not religion — run it with real numbers.
3 · Rental taxes: the election that changes everything
Default rule for non-residents: 30% withholding on GROSS rent. The almost-always-better alternative: electing to be taxed on NET income (rent minus expenses, depreciation included) by filing an annual return. The election is made formally — it is not automatic, and skipping it is giving money away every month.
4 · The future sale: FIRPTA
When a non-resident sells US real estate, the buyer must withhold a percentage of the TOTAL sale price (the general rule is 15%) against the tax. If your actual gain is smaller, the excess is recovered by filing — but that cash flow is planned before signing, not at the closing table.
5 · Signing without traveling
Remote closings are routine: powers of attorney and closing documents are signed before a notary — and if you're in your country, remote online notarization (RON) plus apostilles solve the full circuit. I'm a Florida notary with RON authorization myself: this is literally my specialty.
The remote buyer's minimum team
- A realtor who works with foreign buyers
- A DSCR lender (if financing)
- A title company for closing
- An accountant for the net election and annual return
- A property manager
Buying takes a day; operating well is every year.
📄 Take this with you as a PDF
This article is also a free printable guide: Buying US real estate from abroad.
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