Condos vs. co-ops, FIRPTA withholding, financing without U.S. credit, ownership structures, and the tax implications most international buyers don't discover until it's too late. A straightforward guide from someone who works with foreign purchasers regularly.
Yes — and unlike markets such as Canada, Singapore, or Australia, the United States places no citizenship or residency requirement on property ownership. There is no foreign buyer ban, no additional stamp duty, and no special permit required. If you have the funds and the documentation, you can buy.
This openness is one of the reasons NYC real estate for foreign buyers has remained consistently attractive. International buyer activity in New York doubled in the first half of 2025 compared to the same period the previous year, with capital flowing in from Asia, Europe, the Middle East, and Latin America. Nationally, foreign buyers purchased 78,100 U.S. homes worth $56 billion between April 2024 and March 2025 — a 33% increase in dollar volume year-over-year.
The question isn't whether you can buy in New York. It's whether you understand the rules well enough to buy smartly. The tax implications alone can cost or save you hundreds of thousands of dollars depending on how you structure the purchase.
2×Foreign BuyerThis is the single most important decision for any foreign buyer considering NYC real estate, and the answer is nearly always the same: buy a condo.If you want to make it even smoother, buy a sponsor unit and you'll be able to avoid any sort of application altogether.
Co-ops make up roughly 70% of NYC's ownership housing stock, and they're often more affordable per square foot. But co-op boards present near-insurmountable barriers for most international purchasers. Boards typically require U.S. tax returns, U.S.-based employment or income, an established American credit history, and in-person interviews. They can — and regularly do — reject applicants without providing any explanation. The law doesn't require them to.
Condominiums have none of these restrictions. You own the unit outright as real property. Most condo boards have only a right of first refusal (rarely exercised) rather than full approval authority. Condos welcome foreign investors, allow pied-à-terre use, permit subletting and renting, and accept entity ownership through LLCs — all of which matter to international buyers. For a deeper comparison of the two property types, see our guide to co-ops vs. condos in NYC.
| Condo | Co-op | |
|---|---|---|
| Foreign Buyer Access | Open — minimal restrictions | Extremely difficult — U.S. tax returns, credit, employment required |
| Board Approval | Right of first refusal only | Full board approval with interview |
| LLC Ownership | Accepted | Rarely permitted |
| Subletting/Renting | Generally allowed | Restricted or prohibited |
| Pied-à-Terre Use | Allowed | Often restricted |
| Financing | Foreign national mortgages available | Max 80% financing, U.S. lender required |
| Median Price (Manhattan) | ~$1.65M–$1.8M | ~$760K–$860K |
Three out of four Manhattan condo buyers in late 2025 paid in cash. That statistic tells you everything about the profile of the international condo buyer in this market — and why developers design their buildings to attract this capital.
I work with foreign buyers across time zones. Let's talk about your goals, timeline, and the right structure for your situation.
Start a ConversationMany international buyers purchase in all cash, but foreign national mortgage programs do exist and the market has matured significantly. You don't need a U.S. Social Security number, U.S. credit history, or U.S. employment to obtain financing — but the terms differ meaningfully from what domestic buyers receive.
Down payment: 30–50%. Most foreign national programs require at least 30% down, with luxury properties or higher-risk profiles pushing toward 50%. Compare this to a domestic buyer who might put down 10–20% on a condo.
Reserves: 12–24 months. You'll need to demonstrate liquid assets covering 12 to 24 months of carrying costs (mortgage, common charges, and taxes) sitting in accessible accounts after closing. If your carrying costs are $15,000 per month, that's $180,000–$360,000 in post-closing liquidity.
Interest rates: 0.5–1.5% premium. Foreign national loans are typically priced half a point to a point and a half above comparable domestic rates, reflecting the additional currency and credit risk for the lender.
Banks with established foreign national programs include HSBC, which has strong infrastructure for international clients, along with several private banks and portfolio lenders that specialize in this space. Your real estate agent and attorney should be able to connect you with lenders who regularly close foreign buyer transactions in New York.
💡 Documentation You'll NeedExpect to provide: a valid passport, proof of funds (bank statements from your home country), income verification (employment letters, tax filings from your home jurisdiction), and a reference letter from your current bank. Some lenders accept international credit reports. Start gathering these documents well before you begin looking at properties.
This is where NYC real estate for foreign buyers gets genuinely complicated — and where the wrong structure or the wrong advice can cost you a staggering amount of money. There are taxes when you buy, taxes while you own, and taxes when you sell. You need to understand all three before you make an offer.
New York does not impose a special foreign purchaser tax. You pay the same transfer taxes and closing costs as a domestic buyer. The major costs include the mansion tax (1–3.9% on purchases over $1M), mortgage recording tax if financing (1.8–1.925%), and attorney fees ($3,000–$5,000+). For a complete breakdown, see our NYC buyer closing costs guide.
Property taxes apply to all owners regardless of citizenship. If you rent the property, rental income is taxable in the U.S. and you'll need to file a federal tax return. New York State and New York City also impose income taxes on rental earnings. Many foreign owners hire a U.S.-based CPA to handle annual filings.
This is the big one. FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer to withhold 15% of the gross sale price when purchasing property from a foreign seller and remit it to the IRS. This isn't an additional tax — it's a withholding against your actual capital gains tax liability — but it means 15% of your sale price is held by the IRS until you file a return and claim any overpayment back.
On top of FIRPTA, New York State withholds an estimated 8.82% on gains from non-resident sellers. Combined, these withholdings can tie up a significant portion of your proceeds for months.
💡 The Estate Tax TrapThis catches more foreign owners off guard than any other rule. Non-resident aliens face federal estate tax of up to 40% on U.S.-situated assets, with an exemption of only $60,000 — compared to $13.61 million for U.S. citizens. If you personally own a $3 million Manhattan condo and pass away, your heirs could owe over $1.1 million in estate tax. This is the primary reason most advisors recommend entity ownership for foreign buyers. Talk to a cross-border tax attorney before closing.
How you hold title to a New York property can have a greater financial impact than the purchase price itself. For foreign buyers, this decision affects estate tax exposure, FIRPTA withholding, privacy, and asset protection.
The simplest approach. You buy the condo in your own name. The downside: full exposure to the $60,000 estate tax exemption (essentially no exemption), FIRPTA withholding at sale, and your name on public records. For a primary residence you plan to live in long-term, personal ownership can work — but most foreign buyers should at least evaluate the alternatives.
Purchasing through a U.S.-based LLC is the most common structure for foreign investors. Benefits include reduced estate tax exposure (the property is held by the entity, not you personally), added privacy, liability protection, and simplified transfer of ownership. However, LLC ownership adds costs — formation fees, annual filing requirements, and potentially higher property taxes in some scenarios. Your CPA and attorney should model the total cost before you decide.
Some foreign buyers use irrevocable trusts or foreign trusts to remove the property from their taxable estate entirely. These structures are more complex and expensive to establish but can provide significant estate tax savings on high-value properties. The right structure depends on your home country's tax treaties with the United States — treaties that can materially change the calculus.
The bottom line: do not close on a New York property without consulting a cross-border tax attorney and a CPA who specializes in international clients. The upfront cost of proper structuring is a fraction of what the wrong structure will cost you over time.
The NYC buying process for foreign purchasers follows the same basic steps as any domestic purchase, with a few critical additions. Here's the sequence as I walk my international clients through it.
The entire process typically takes 60–90 days from signed contract to closing for a condo. For a more detailed overview of each stage, see our ultimate NYC buyer's guide.
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Manhattan remains the primary destination for foreign capital in NYC real estate, but the specific neighborhoods and price points have shifted meaningfully over the past two years.
Midtown and the Financial District continue to attract buyers looking for new-construction condos with full amenity packages, concierge services, and the kind of turnkey experience that works for pied-à-terre use or rentals. That includes as far south as Nomad and as high up as Billionaires Row. These buildings are designed with the international buyer in mind — they understand the profile and the needs.
West Chelsea and Hudson Yards remain popular among buyers from Asia and the Middle East seeking trophy assets with strong brand recognition. The newest towers offer world-class views and finishes, though per-square-foot prices are among the highest in the city.
Tribeca and the West Village. Rent producing staples in premium neighborhoods combine the mix of appreciating prices and high rents. When everything else stalls, top properties in these two neighborhoods continue to set records.
The Manhattan median sale price hit $1.4 million in January 2026 — up 14.8% year-over-year. But this figure is heavily driven by the luxury segment. Plenty of well-located condos in strong buildings trade between $800K and $1.5M, particularly in the Upper East Side, Murray Hill, and emerging areas like the Lower East Side. For help choosing the right neighborhood, explore our overview of NYC's top real estate firms working in these markets.
After years of working with international clients, these are the patterns that cost people the most money and stress.
Not consulting a tax advisor before closing. The ownership structure decision alone — personal vs. LLC vs. trust — can swing your long-term tax liability by six figures. And once you close in the wrong structure, unwinding it triggers additional taxes. Get the advice first.
Underestimating closing costs. Foreign buyers frequently budget for the purchase price and forget about the 4–6% in closing costs for condos, plus attorney fees, LLC formation costs if applicable, and ongoing property taxes. On a $2M condo, closing costs alone can exceed $100,000.
Not knowing your home country's remittance laws . Regulation and reporting surrounding transfers of money can be deal-killing if not handled quickly and early. Less often but more frequently overlooked are your bank's transfer rules. Avoid anything that can cause delays in the most crucial moments.
Trying to buy a co-op. I've seen foreign buyers fall in love with a beautiful prewar co-op, only to discover they can't get past the board. Save yourself the heartbreak — unless you have U.S. tax returns, U.S. income, and U.S. credit, focus on condos from the start.
Choosing an agent without international experience. The logistics of a cross-border transaction — time zones, wire transfers from overseas banks, power-of-attorney closings, entity purchases — require specific experience. Not every agent has it. Ask how many foreign buyer transactions they've closed in the past year.
Ignoring the estate tax exposure. This is the costliest mistake of all. A $5M condo held personally by a non-resident alien could generate nearly $2M in federal estate tax alone. Proper planning eliminates most or all of this exposure. The planning costs a fraction of the tax.
Yes. The United States has no citizenship, visa, or residency requirement for purchasing real estate. Foreign nationals from any country can buy condos, townhouses, and houses in NYC. Co-ops are technically open to foreign buyers but rarely approve applicants without U.S. tax returns and credit history, making condos the practical choice.
There is no special foreign buyer tax when purchasing. You pay the same mansion tax, transfer taxes, and closing costs as any domestic buyer. However, when you sell, FIRPTA requires 15% of the sale price to be withheld by the IRS, and New York State withholds an estimated 8.82% on capital gains from non-resident sellers. Estate tax exposure is also significantly higher for non-resident aliens due to the $60,000 exemption (vs. $13.61M for U.S. citizens).
Yes. Foreign national mortgage programs are available from banks like HSBC and specialized portfolio lenders. Expect a 30–50% down payment, 12–24 months of reserves, and interest rates 0.5–1.5% above domestic rates. You do not need a U.S. Social Security number or U.S. credit history, but you will need passport, proof of funds, income verification, and a bank reference letter.
In most cases, yes — particularly for investment properties or high-value purchases. LLC ownership reduces estate tax exposure, provides asset protection, and offers privacy. However, the benefits depend on your home country's tax treaty with the United States and your specific financial situation. Consult a cross-border tax attorney before deciding.
FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer to withhold 15% of the gross sale price when purchasing from a foreign seller and remit it to the IRS. This is a withholding against your capital gains tax, not an additional tax. You can file a U.S. tax return to claim a refund if the withholding exceeds your actual tax liability. Foreign sellers may apply for a withholding certificate before closing to reduce the amount.
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