Foreign Land Buyers: How to Buy Land in the United States
1. Are there any restrictions on non-U.S. citizens buying land in the U.S. ?
2. Do I have to pay taxes on land I buy ?
3. When I buy land in the U.S., do I have to pay for it all at once or can I finance it?
4. Is there a credit check for financing?
5. Who pays the property taxes while I am paying for my land?
6. What about currency exchange?
7. What are the wire transfer instructions?
8. Can I use a credit card?
9. Who owns the land?
10. How is title to the land transferred to me?
11. Who holds the title while I am paying for my land?
12. What happens if I want to sell the land I buy ?
1. Are there any restrictions on non-U.S. citizens buying land in the U.S.? There are NO restrictions that would prevent foreigners from buying land in the U.S. You only need proof of residency in your country and valid identification such as a passport or visa.
2. Do I have to pay taxes on land I buy? Yes, every owner will owe annual property taxes. Foreigners who purchase land in the United States must pay U.S. property taxes. Taxes will vary by state, county and city. Local taxes are levied to pay for education, public safety and other services. You may want to hire a real estate attorney to guide you through the U.S. tax system.
3. When I buy land in the U.S. , do I have to pay for it all at once or can I finance it? Depending on the seller You can buy land for a single payment, or with financing. Purchasing land outright with a credit card or wire transfer is the easiest way to buy land from. With this type of purchase, you are responsible for paying any annual taxes when they come due each year.
Any and all information we have about a property is listed on the item’s description on our website, including the APN number, which is used as the property identifier. We cannot provide any additional information other than what is listed on our website. If you call the County Assessor’s office for the county in which the land is located, you can give them the APN and obtain any specific details you need to evaluate your buying and bidding decision.
4. If I want to finance land, are you going to check my credit? Most sellers do not run a credit check for financing.
5. Who pays the property taxes while I am paying for my land? If you finance your land purchase and pay in monthly installments, most sellers add the taxes a to your monthly bill as a pass-through expense.
6. What about currency exchange? All land is sold and denominated in U.S. dollars. When you become a buyer and you go to your bank to wire the money, they should be able to do the exchange conversion for you. If you pay by credit card, your card company does the exchange conversion for you, and it will show up on your monthly statement.
7. What are the wire transfer instructions? Bank-to-bank wire transfer is considered the safest international payment method. International buyers should wire your money transfers.
8. Can I use a credit card? Yes, paying with a credit card is the easiest and preferred method of paying for the land thru most sellers. You can use a credit card to buy land from us in a single payment, or you can finance your sale and you can use a credit card to make your monthly payments.
9. Who owns the land? All of the land should be sold free and clear. This means that no one else owns the land or has any rights to use it or claim it.
10. How is title to the land transferred to me? If you purchase outright with one lump-sum payment for your land, most sellers will handle all the legal paperwork on your behalf. You will provide them with vesting information, and the seller will take care of the rest, which includes recording the sale with the local County Assessor, showing you as the new owner in the public record If you purchase with financing, you will receive a contract outlining all the terms and conditions of sale, and specifics on your monthly installment payment. Once the property is paid off, the seller will record the sale with the local County Assessor, showing you as the new owner in the public record.
11. Who holds the title while I am paying for my land? When you purchase and make monthly installment payments, the seller will usually hold the Title until you have paid in full.
12. What happens if I want to sell the land? You may sell the property, after being paid in full, and transfer ownership to a party you would designate. If a foreigner, if you sell any land you purchased in the United States, The sale is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding.
To ensure that taxes on the sale of the land are collected from foreign taxpayers, FIRPTA requires those who buy land from non-U.S citizens to withhold 10% of the sales price. As the seller, you may apply to the Internal Revenue Service (IRS) to reduce this 10% to the amount of tax estimated to be due. The IRS routinely and quickly approves such applications from sellers. You may want to hire a real estate attorney to help you better understand FIRPTA and how you can decrease the 10% tax withholding.