At present, no federal restrictions are imposed on the ownership of US real estate by aliens. However, the US Department of Commerce and the US Department of Agriculture require that real estate ownership by nonresident aliens or foreign entities be reported, subject to certain threshold requirements. These reports are for statistical purposes rather than regulatory ones, and noncompliance has been high. As a result, these agencies have announced that they intend to encourage compliance through heightened enforcement of the available penalties.
Many states place restrictions on the ownership of real property by foreign nationals.
These state restrictions may be modified or even nullified by various US treaties. Individuals who want to purchase property should seek legal counsel to determine whether any restrictions apply in their circumstances. Individuals should also determine whether a particular state imposes reporting requirements on foreign owners of real estate. The income and estate tax consequences of owning or selling property will vary depending on the vehicle through which the actual investment is made. Among corporate owners, foreign corporations may be subject to the US branch profits tax, while a US corporation will not be.