Rules for Foreigners Investing in Rental Property in the U.S.

little wooden toy house with a 100 bill inside it and some stacks of coins next to it

The U.S. tax rules that apply to ownership and dispositions of U.S. real estate by foreign persons are different in some important respects from the rules that apply to U.S. persons. Also, property managers are under special rules when managing property for foreign owners, and sellers to foreign investors can be classified as withholding agents (which have important obligations and liabilities associated with the classification).