How to Buy Property in NYC Without U.S. Residency

New York City has long been a magnet for global capital. International investors are drawn to its transparent legal system, deep rental market, cultural appeal, and reputation as a global financial center. The good news is that U.S. citizenship or permanent residency is not required to purchase property in NYC.

This guide provides a step-by-step roadmap for foreign nationals to buy real estate in New York City. From legal ownership structures to financing strategies and immigration considerations, we break down how non-residents can invest securely and effectively.

Can Foreigners Legally Buy Property in New York?

Yes. There are no citizenship or residency restrictions on property ownership in New York. Non-residents can freely purchase condos, townhouses, and certain commercial properties. However, specific rules apply depending on the type of property, financing, tax status, and long-term usage plans.

Before starting your search, it's essential to understand that while ownership is permitted, purchasing property in the U.S. entails significant legal, financial, and logistical responsibilities.

Step 1: Choose the Right Ownership Structure

The first major decision foreign buyers face is how to legally hold the property. The ownership structure you choose will impact privacy, taxation, estate planning, and financing.

Option 1: Buy in Your Personal Name

Purchasing in your own name is the simplest method. The deed lists you as the legal owner, and all property-related income or gains are taxed to you individually.

Pros:

• Easy to set up
  
  

• No entity maintenance
  
  

• Direct ownership rights

Cons:

• No privacy (your name is public on the records)
  
  

• Full exposure to U.S. estate taxes (only $60,000 exemption for non-residents)
  
  

• Potential legal liability

This option is best for modest purchases intended for personal use with minimal tax exposure.

Option 2: Purchase Through a U.S.-Based LLC

A popular alternative is to form a Limited Liability Company (LLC) in New York or Delaware to hold title to the property.

Pros:

• Greater privacy (LLC name appears on deed)
  
  

• Limits personal liability
  
  

• Useful for estate planning (transferring LLC shares instead of real estate)
  
  

• Can simplify ownership of multiple U.S. properties

Cons:

• Requires legal setup and annual maintenance
  
  

• Must file tax returns for the LLC
  
  

• Some banks may require additional due diligence for entity-based financing

LLCs are especially useful for high-value properties or rental investments.

Option 3: Use a Trust or International Holding Company

For long-term legacy planning, some buyers use a U.S. revocable trust, a foreign trust, or an offshore holding company.

Pros:

• Better estate planning control
  
  

• Avoids U.S. probate
  
  

• Centralizes family asset management

Cons:

• Legal and tax setup is more complex
  
  

• May increase scrutiny during financing or FIRPTA compliance
  
  

• May not be suitable for active income-producing assets
  
  

This structure is best for wealthy families or multi-generational buyers.

Step 2: Understand Property Types in NYC

Not all properties are equally suitable for non-residents. It’s important to know which ones to target based on your citizenship status and use case.

Condominiums (Condos)

Condos are the preferred property type for international buyers. Each unit is individually owned, and there is minimal interference from the building board.

Benefits:

• No board approval needed
  
  

• Can be used as a pied-à-terre or rented out
  
  

• Suitable for LLC ownership
  
  

Condos are the most flexible and foreigner-friendly type of residential property in NYC.

Cooperatives (Co-ops)

Co-ops are owned by a corporation. Buyers receive shares in the building rather than a deed.

Limitations for Foreigners:

• Requires board interview and approval
  
  

• Often prohibits use as a secondary residence or investment
  
  

• Usually disallows corporate or trust ownership

Non-residents typically avoid co-ops due to these restrictions, though exceptions exist for high-end or investor-friendly co-ops.

Townhouses and Multi-Family Homes

Foreign buyers also consider townhouses or brownstones, which offer full land ownership and no building restrictions.

Considerations:

• Can be held in an LLC
  
  

• Suitable for rental income or family use
  
  

• Higher maintenance and property taxes
  
  

These are popular among European buyers seeking privacy or long-term appreciation.

Step 3: Prepare for Financing and Currency Strategy

Buying with cash is ideal for foreign buyers, but financing is available for those who meet documentation requirements. Planning your currency conversion and capital transfer is equally important.

All-Cash Transactions

More than 60% of international deals in NYC are completed in cash. This simplifies the process, improves negotiation leverage, and reduces closing costs.

Advantages:

• Faster closings
  
  

• No mortgage recording tax (~2%)
  
  

• No risk of financing denial

If you have the liquidity, cash deals are generally preferred.

Financing as a Non-Resident

If you choose to finance:

Requirements:

• 30% to 50% down payment
  
  

• Foreign income verification (translated bank and tax records)
  
  

• Credit references or U.S. bank accounts
  
  

• Valid ID and visa (some banks allow passport-only financing)
  
  

Loan options:

• Foreign national mortgage programs
  
  

• Private bank financing
  
  

• International mortgage brokers

Expect higher interest rates (6–8% in 2025), limited lender options, and longer closing times (60–90 days).

Currency Conversion and Hedging

Currency fluctuations significantly impact real estate costs. Forward contracts, spot conversions, and staged transfers can help manage risk.

Best practices:

• Lock in FX rates once contract is signed
  
  

• Use specialist FX brokers (not retail banks)
  
  

• Keep enough USD in escrow for unexpected shifts

Buying when your home currency is strong can translate into hundreds of thousands in savings.

Step 4: Understand Legal and Tax Obligations

Non-residents must comply with U.S. and New York tax law. Property income, gains, and estate value all have tax consequences.

Rental Income Tax

If you rent your NYC property, you must pay U.S. tax on that income. You can either:

• Withhold 30% of gross income (default rule), or
  
  

• Elect to be taxed on net income (deducting expenses) by filing Form W-8ECI and IRS Form 1040NR
  
  

The second method reduces your effective tax rate and is commonly used by long-term investors.

FIRPTA Withholding on Sale

Under the Foreign Investment in Real Property Tax Act (FIRPTA), 15% of the sale price is withheld when a foreign owner sells U.S. property.

Steps to minimize FIRPTA impact:

• File Form 8288-B to reduce withholding
  
  

• Work with a tax attorney and accountant
  
  

• Apply for a refund if you overpaid

FIRPTA is a withholding mechanism not the final tax owed so preparation is key.

U.S. Estate Tax Exposure

If you die owning U.S. property worth over $60,000 (held in your own name), your estate may be taxed up to 40%.

Solutions:

• Own via LLC or trust
  
  

• Use life insurance to offset exposure
  
  

• Structure foreign ownership carefully

Proper planning avoids unnecessary estate tax liability for your heirs.

Step 5: Visa and Immigration Considerations

While owning property in the U.S. does not grant immigration benefits, many non-residents are concerned about travel and long-term access to their home.

Owning Property Without a Visa

You can own U.S. property without a visa. Many owners visit the U.S. under the Visa Waiver Program (90 days for citizens of 40+ countries) or apply for B-1/B-2 tourist visas.

Restrictions:

• No right to live permanently in the U.S.
  
  

• Must comply with visit duration and frequency limits
  
  

• Cannot use property ownership to justify residency

For some, property ownership is a stepping stone to longer-term visa strategies.

Property Ownership and E-2 or EB-5 Visas

Owning a property may support—but not qualify you for—a visa. However:

• E-2 visas (treaty investor) require active business operations
  
  

• EB-5 visas (immigrant investor) require $800,000+ investment into approved job-creating projects

While real estate alone is not sufficient, it can be part of a broader immigration and investment plan.

Step 6: Navigating the Closing Process

Buying real estate in NYC typically takes 60 to 90 days from accepted offer to closing. Here’s what to expect as a non-resident.

Key Players

• Real estate attorney (required): Reviews contracts, handles due diligence, and represents you at closing
  
  

• Broker: Helps you find the right property and negotiates terms
  
  

• Title company: Ensures clean title and handles transfer
  
  

• Lender: If financing, processes the loan
  
  

• Accountant: Assists with IRS filings, ITIN applications, and FIRPTA compliance

Select professionals who are experienced in working with foreign buyers and can operate across multiple time zones.

Typical Closing Costs

Expect to pay 2% to 6% in closing costs, depending on price and whether you’re financing.

• Mansion tax: 1% to 3.9% on homes over $1 million
  
  

• NYC and NY State transfer taxes: 1.425% to 2.075% (usually paid by seller)
  
  

• Title insurance: ~0.4%
  
  

• Attorney fees: $3,000 to $6,000
  
  

• Building fees: Application, processing, and move-in fees
  
  

Remote or Power-of-Attorney Closings

Many international buyers close remotely using power-of-attorney (POA). Your attorney signs on your behalf and handles escrow transfers. This is common and fully accepted by NYC legal and banking institutions.

Frequently Asked Questions

Can I use my foreign bank account to purchase?

Yes. Funds can be wired from a non-U.S. account, but they must be in U.S. dollars by the time of transfer. Be sure to notify your bank in advance to avoid compliance delays.

Do I need a U.S. Social Security Number?

No. You can apply for an Individual Taxpayer Identification Number (ITIN) to file taxes, claim refunds, and meet FIRPTA requirements. Your attorney or accountant can assist with the application.

Can I open a U.S. bank account?

Most foreign buyers open a U.S. bank account to streamline payments, but this process typically requires identity verification and may involve a physical visit. Some banks offer cross-border account services in partnership with international institutions.

Buying as a Non-Resident: Step-by-Step Checklist

1. Determine your ownership structure (personal, LLC, trust)
   
   

2. Choose your property type (condo, townhouse, etc.)
   
   

3. Secure financing or prepare for a cash transaction
   
   

4. Hire an NYC-based attorney and tax advisor
   
   

5. Submit offer, conduct due diligence, and sign contract
   
   

6. Open escrow and transfer funds
   
   

7. Close remotely or in person
   
   

8. File appropriate tax forms and set up ongoing compliance
   
   

9. Monitor market for rent or resale opportunities
   
   

10. Plan estate and exit strategy

Ready to Invest in NYC as a Non-Resident?

Buying real estate in New York City without U.S. residency is entirely possible and increasingly popular. With the right structure, planning, and advisors, international buyers can secure high-value assets in one of the world’s most stable and desirable markets.