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The United States does not place any restrictions on non-US citizens buying and owning real estate in the United States even if you never visited the United States. You won't need a green card to buy a house in the USA, but you will need an Individual Taxpayer Identification Number (ITIN). Depending on your nationality, you may also need a valid foreign passport, visa and two or more current photo identifications, such as a driver's license.According to VISIT-USA Act, foreign nationals can buy property in USA worth of minimum Half a Million Dollar ($500,000) and get 3 years visa to stay in the United States. This visa does not provide work permit and one must stay in this residence at least for six months (not necessarily consecutive) in a year.Congress created the EB-5 Immigrant Investor Program in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. Under this program, a foreigner who invests $500,000 — and in some instances, $1 million — in a project that will create at least 10 jobs can apply for a green card. It generally takes from 22 to 26 months to obtain legal residency through the program.In addition, there are E-2 Treaty Investors, which allows an individual to enter and work inside of the USA based on an investment he or she will be controlling, while inside the United States. This visa must generally be renewed every two years, but there is no limit to how many times one can renew. The investment must be "substantial." Investor visas are available only to Treaty Countries.Here is some important information you might need to know before you proceed forward.Get an ITIN:To obtain an ITIN, you must complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number. The Form W-7 requires documentation substantiating foreign/alien status and true identity for each individual. You may either mail the documentation, along with the Form W-7, to the address shown in the Form W-7 Instructions, present it at IRS walk-in offices, or process your application through an Acceptance Agent authorized by the IRS.Type of Property You Can Buy:You can buy single-family homes, condominiums, duplexes, triplexes, quadraplexes and townhomes. But you can not buy housing cooperatives or co-ops, because in order to buy a co-op you must have income inside the USA and a lot of co-ops generally prohibit foreign ownership.Financing:It is possible to obtain financing for a purchase by a foreign buyer, however, foreigners are more likely to pay higher interest rates. Most qualified Foreign Buyers can obtain financing for properties with a 30% down payment ( 40% for Miami). You will need to have $100,000 on deposit with the bank and if you withdraw money and your deposit goes below this threshold, your interest rate will increase. And the loan limit for foreign buyers are within $3,000,000. You are welcome to make an all-cash purchase, but U.S. law mandates that cash transactions over $10,000 be reported to the federal government.Closing:If you want to attend your real estate closing you are more than welcome, but it is not necessary for you to be in the US. Rather, you can provide your representative with “Power of Attorney” and the representative will have the right to close the deal on behalf of you. This is quite common and convenient for the buyer who does not want to come back to the US for the closing.Taxes:A foreigner does not need to pay a specific tax due to their residence status. The US government requires that the Foreign National “elect” to pay US income taxes on any net income (rental revenues less expenses) derived from rental property. If this election is not made in a timely fashion (e.g., US income tax returns not filed), a tax of 30% of the gross rental income will be assessed. Under this scenario, the investor would not be able to deduct any expenses such as depreciation, interest, property taxes, common charges, etc. Even if the Foreign Investor is incurring tax losses in the beginning years of their investment, and, therefore, doesn’t owe any taxes to the government, they still must file their tax returns in a timely manner in order to make the election.Foreign buyers who finance their purchases with a 40% to 50% down payment are usually able to avoid paying income taxes on any rental income derived from the property for the first 10 to 15 years. This results from the types of expenses the U.S. government allows taxpayers to deduct from their income when filing income taxes. Things like mortgage interest, common charges, property taxes, and depreciation are included in these calculations, often leading to “negative income” calculations, meaning no taxes will need to be paid.A foreign person needs to pay gains tax and FIRTPA withholding tax. Federal Gains tax is currently 15% of the net capital gain. Net capital gain is the amount of the gain on the property with the original purchase price, closing costs, and capital improvements (renovations), subtracted out.Homeowners in the U.S. are subject to property taxes regardless of their nationality. Property taxes vary from state to state, and even within states, from 2.076% in Bergen County, New Jersey to 0.251% in Hawaii County, Hawaii.Foreign persons are also subject to Federal estate tax on property owned in the U.S. when they die. Currently the estate tax rate can be as high as 35%. U.S. citizens are given an individual exemption from the tax up to 5 million dollars. Married couples are currently exempt up to 10 million dollars. However, non U.S. citizens are not granted the exemption, unless a treaty exists with their country. See the discussion on treaties below. As a result, property valued above $60,000 is subject to estate tax. Discussed below are suggestions of vehicles that can be created to avoid Federal Estate tax including an irrevocable trust and a foreign holding company.This is easily avoided if the Foreign Buyer does some upfront planning. The planning involves setting up a Limited Liability Corporation (LLC) and a Foreign Corporation. The LLC would own the property, the Foreign Corporation would own the LLC, and the buyer would hold shares of stock in the Foreign Corporation. Under this scenario, since the property is “owned” by the Foreign Corporation, the US government would receive nothing upon the death of the Foreign Buyer. This is a great tax savings for Foreign Buyers and is not very expensive to implement. This structure also allows for the easy transfer of the property from one party to another by the selling of shares of the corporation rather than the sale of the property, which might trigger a taxable event. It is advisable for any owner of investment real estate (foreign or US) to create at least an LLC to hold the property, since using this structure limits the owner’s liability to the value of the LLC, which would strategically own only that particular property and, therefore, the owner’s liability would be limited to the net value of the property. Taking this one step further, using a Foreign Corporation to own the LLC would provide protection to the Foreign Buyer against the estate tax.Buying in the name of an Individual vs in the name of an LLC:If a foreign person wishes to purchase the property individually, they can create an irrevocable trust to hold the property. An irrevocable trust will avoid estate tax when the foreign person dies. In addition, a trust can provide similar privacy protections to a corporation.As noted above, owning a property through an LLC or US corporation can provide liability protection and additional privacy to the foreign buyer.Currently, long term capital gains tax rates are 15% for individuals and there is no capital gains treatment for C corporations. Federal corporate tax rates can be as high as 35%. What this means for the foreign buyer is a tax savings on the capital gains on the sale of the property if it is held individually as opposed to a standard corporation. However, these taxes can be avoided, and the foreign person can obtain the Federal capital gains tax rate of 15%, by creating an LLC. LLC’s allow individuals to be taxed at their own individual tax rate, instead of being subject to the high corporate tax rates of 35%. As a result, there is not a significant advantage in tax treatment to a foreign buyer if they own a property individually.While there is not a significant difference in tax treatment between owning the property individually or through an LLC, there is a difference in liability protection. Owning a property individually can subject the foreign buyer to lawsuits in the U.S., whereas, an LLC can protect the foreign buyer’s assets outside those owned by the LLC from liability.Disclaimer:I am not an attorney or a real estate expert. My answer is solely based on information available on public websites. The Answer is not intended to provide legal advice.

From the IRSElection to File Joint ReturnIf, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U.S. resident. This includes situations in which one of you is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other is a nonresident alien at the end of the year.If you make this choice, the following rules apply:You and your spouse are treated, for income tax purposes, as residents for all tax years that the choice is in effect,You must file a joint income tax return for the year you make the choice, andEach spouse must report his or her entire worldwide income on the joint income tax returnIf you make this choice, you and your spouse are treated as residents for your entire tax year for the purpose of your federal individual income tax return, and for the purpose of withholding U.S. federal income tax from your wages.In addition, you may still be treated as a nonresident alien for the purpose of withholding Social Security and Medicare tax. Refer to Aliens Employed in the U.S. – Social Security Taxes.Generally, neither you nor your spouse can claim tax treaty benefits as a resident of a foreign country for a tax year for which the choice is in effect and you are both taxed on worldwide income. However, the exception to the saving clause of a particular tax treaty might allow a resident alien to claim a tax treaty benefit on certain specified income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years.Example:Pat Smith has been a U.S. citizen for many years. She is married to Norman, a nonresident alien. Pat and Norman make the choice to treat Norman as a resident alien by attaching a statement to their joint return. Pat and Norman must report their worldwide income for the year they make the choice and for all later years unless, the choice is ended or suspended. Although Pat and Norman must file a joint return for the year they make the choice, as long as one spouse is a U.S. citizen or resident, they can file either joint or separate returns for later years.How to Make the ChoiceAttach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the following:A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year, andThe name, address, and social security number (or individual taxpayer identification number) of each spouse. (If one spouse died, include the name and address of the person making the choice for the deceased spouse.)You generally make this choice when you file your joint return. However, you can also make the choice by filing a joint amended return on Form 1040X, Amended U.S. Individual Income Tax Return (PDF). If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice.You generally must file the amended joint return within 3 years from the date you filed your original US income tax return or 2 years from the date you paid your income tax for that year, whichever is later.Suspending the ChoiceThe choice to be treated as a resident alien does not apply to any later tax year if neither of you is a US citizen or resident alien at any time during the later tax year.Example:Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. They chose to treat Judy as a resident alien and filed a joint 2010 income tax return. On January 10, 2011, Dick became a nonresident alien. Judy had remained a nonresident alien. Since neither Dick nor Judy is a resident alien at any time during 2011, their choice to treat Judy as a resident alien is suspended for that year. For 2011, both are treated as nonresident aliens. If Dick becomes a resident alien again in 2012, their choice to treat Judy as a resident alien is no longer suspended. Since Dick is a resident alien, they can again choose to treat Judy as a resident alien and file a joint 2012 income tax return.Ending the ChoiceOnce made, the choice to be treated as a resident applies to all later years unless suspended (as explained above) or ended in one of the ways shown below. If the choice is ended for any of the reasons listed below, neither spouse can make a choice in any later tax year.Revocation by either spouseDeath of either spouseLegal SeparationInadequate recordsFor a more detailed explanation of these items, refer to the section titled Ending the Choice in Chapter 1 of Publication 519, U.S. Tax Guide for Aliens.Note: If you do not choose to treat your nonresident spouse as a U.S. resident, you may be able to use head of household filing status. To use this status, you must pay more than half the cost of maintaining a household for certain dependents or relatives other than your nonresident alien spouse. For more information, refer to Head of Household and Publication 501, Exemptions, Standard Deduction, and Filing Information.Special SituationsIf you are a nonresident alien from American Samoa or Puerto Rico, you may be treated as a resident alien.If you are a nonresident alien in the United States and a bona fide resident of American Samoa or Puerto Rico during the entire tax year, you are taxed, with certain exceptions, according to the rules for resident aliens of the United States. For more information, see chapter 5 of Publication 519, U.S. Tax Guide for Aliens.If you are a nonresident alien from American Samoa or Puerto Rico who does not qualify as a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you are taxed as a nonresident alien.Resident aliens who formerly were bona fide residents of American Samoa or Puerto Rico are taxed according to the rules for resident aliens.Social Security NumberIf your spouse is a nonresident alien and you file a joint or separate return, your spouse must have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). To get an SSN for your spouse, apply at a social security office or U.S. consulate. You must complete Form SS-5. You must also provide original or certified copies of documents to verify your spouse's age, identity, and citizenship. If your spouse is not eligible to get an SSN, he or she can file Form W-7 with the IRS to apply for an ITIN. Refer to Taxpayer Identification Numbers (TIN) for more information.References/Related TopicsU.S. Citizens and Resident Aliens Abroad - Filing RequirementsNote: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases, or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations, or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court case opinions issued after September 24, 1995, visit the Opinions Search page of the United States Tax Court.

Don’t Let the Nice Sounding Description Fool You; HR1 is a horrible bill.What this bill does is take the worst aspects of what happened in the 2020 election and cement them into federal law all over the country. It is designed to ensure fraud. The ethics and campaign finance rule changes are designed to restrict and chill political speech.HR1 mandates that(1) States implement same day registration.(2) Voter IDs are disallowed. States must allow anyone to vote who simply signs a form saying that they are who they claim to be.That means I could walk into any polling place on Election Day, register under an assumed name and sign a form saying that is me. I cast my ballot, get back in line again and repeat the process throughout the day. Election officials would have no way to stop this.Democrats can now adopt the mantra "Vote early, vote often."(3) HR1 also mandates that states allow "vote harvesting" where paid operatives can go around collecting other people's votes. They can go to nursing homes, assisted living centers, apartment complexes, etc. collect votes and deliver them to the polling place. There would be no way to stop them from delivering only ballots that voted the "correct" way or from changing the ballots.(4) HR1 mandates that no state can require a witness signature on an absentee ballot. Coupled with the requirement that disallows any type of identification, this means that anybody can send in an absentee ballot.(5) HR1 mandates that states send out mail-in ballots to everybody and with the same lack of security as absentee ballots. It also forces states to count ballots that arrive up to 10 days after the election.(6) HR1 would force states to allow online registration opening up registration to fraud by cybercriminals.(7) HR1 would force states to allow registration over the phone – an unsecure system.(8) HR1 would worsen the problem of inaccurate voter registration rolls. States could not compare registration rolls with other databases. They could not use the registration rolls of another state, they could not use the U.S. Postal Services change of address system to find people who have moved, and they could not use the driver’s licenses and addresses stored in the state DMV database.(9) HR1 would require states to automatically register people who interact with numerous state and federal agencies. Interact with the DMV, welfare office, etc. and you get registered to vote. This would lead to multiple registrations of the same individuals and the registration of illegal aliens and other ineligible people.In short, HR1 would turn every election into a game of who could cheat the most. And that’s not all of the bad aspects of the bill.(10) HR1 imposes regulatory restrictions on political speech and activity including online and policy related speech by candidates, citizens, civic groups, unions, corporations, and nonprofit organizations. Also, membership organizations would be required to publicly disclose their members and donors potentially subjecting them to intimidation and harassment.(11) HR1 authorize the IRS to investigate and consider the political and policy positions of nonprofit organizations enabling the party in the White House to use the IRS to go after people criticizing them or their policies.(12) HR1 would set up public funding for congressional candidates forcing taxpayers to subsidize the political campaigns of those they vehemently disagree with.(13) HR1 asserts that Congress has the authority to make the District of Columbia into the 51st state giving the Democrats two more Senate seats breaking the current 50-50 tie.Note: This is unconstitutional. The Constitution clearly states that Congress has the power “To exercise exclusive Legislation in all Cases whatsoever” over the District housing the seat of the Government. A constitutional amendment is required in order to change the District of Columbia into a state.Is HR1 Constitutional?The relevant text is Article I, section 4.“The Times, Places and Manner of holding Elections for Senators and Representatives, shall be prescribed in each State by the Legislature thereof; but the Congress may at any time by Law make or alter such Regulations, except as to the Places of choosing Senators.”IMO, it is Constitutional.Current Status of HR1Every Democrat in the House of Representatives signed onto HR1. It passed the House on a party line vote. It has moved to the Senate. The hurdle in the Senate is the Republicans can stop it by using a filibuster – talk the bill to death and never allow a vote. It takes 60 votes to kill a filibuster. The Senate currently has a 50-50 tie and hence, the Democrats don’t have the 60 votes to stop a filibuster. Some Democrats are trying to get rid of the filibuster in order to pass HR1 over Republican opposition.Is HR1 a priority?HR1 is shorthand for “House of Representatives, bill 1.” This is the first bill the Democratic leadership submitted to the House for consideration. The first bill is always what the leadership believes is the most important needed legislation. Apparently, destroying the integrity of elections throughout the entire country is what the Democratic leadership considers to be the most vitally needed legislation.