Buying property in the US as a UK citizen – Is it hard?

Fortunately, UK citizens can legally buy property in the US, and the process is generally straightforward. However, foreign buyers may face extra financial requirements compared with US citizens, such as larger down payments. It is also important to understand that owning property in the US does not automatically give you the right to live there.

Can UK citizens buy property in the US? 🤔

In short – yes. ✅ There are no legal restrictions on UK citizens purchasing property in the US. However, the process can be more complicated for foreign buyers than for US citizens.

💡 Things to consider include:

• State-specific property laws: The property-buying process can vary across states, so it’s important to do your research ahead of looking to buy.
• Financial requirements: Non-residents may face stricter mortgage requirements, including larger down payments and higher interest rates, especially if they have limited US credit history.
• Taxes: The tax implications for property purchases are different for those with tax obligations in more than one country.

If you are purchasing US property from abroad, Wise provides an easy-to-use and low-cost way to move money abroad for a property purchase. You can transfer money from the UK to the US at the mid-market exchange rate, with low transparent fees.

Wise also offers discounts on transfer fees when you transfer large amounts (over 20k GBP or equivalent), which can help you keep the costs low when you’re purchasing your property or making mortgage payments.

What buying property in the US gets you 🔍

💡 Buying a property in the US as a UK citizen means that you will have:

• A home in the US: This could be as a holiday home for visits, or a permanent home if you have the right to live in the US.
• Investment opportunities: You could earn rental income from the property or benefit from increases in real estate value over time.
• Access to financing: As the property builds equity, you may be able to use it as collateral for loans in the future, depending on your financial situation and lender requirements.

What buying property does not get you ❌

Although buying a US property as a foreigner has its advantages, it’s important to remember that it does not grant you:

• A US visa, residency, or citizenship
• The right to work in the US – you will need a work visa or other legal authorization to work in the US for this

How difficult is the process?

The process for buying US property as a foreigner is fairly straightforward, although it can take longer than it does for a US citizen. In general, expect the whole process to take between 4–6 months.

Documents you usually need to provide include:

• Valid photo ID, such as a passport
• US tax number, either a SSN for residents or ITIN for non-residents
• Proof of finance for the purchase, which could be income/assets and an offer of a US mortgage
• Proof of your current UK address, e.g., utility bill or official correspondence
• Current UK or US credit report (if applying for a mortgage)

You won’t necessarily need a US bank account to buy property in the US, although it will make things easier when it comes to managing regular property-related payments.

Forms you may need to fill in as part of the purchase process may include:

• Purchase agreement: Legal contract between the buyer and seller, required for all property sales.
• Relevant tax forms: Forms to confirm that you are not a US citizen for tax purposes, plus you may need to sign Foreign Investment in Real Property Tax Act (FIRPTA) documentation.
• Title documents: These confirm the legal transfer of ownership of the property.
• State or local forms: These may relate to additional disclosures about the property.

Typical timelines 🗓️

Here is a typical timeline for buying US property as a UK citizen, from finding a property to closing the process:

Process	Typical timeline
Finding a property	One week to two months
Offer acceptance	One week
Mortgage approval (if needed)	Up to 8 weeks
Property inspection and valuation	1–3 weeks
Legal checks	1–3 weeks
Closing process	Up to 2 weeks

Transferring money to the US for the purchase 🇬🇧 > 🇺🇲

If you are buying US property from overseas, you can use Wise to move money abroad for the property purchase. Wise money transfers and currency conversions use the mid-market exchange rate with transparent upfront fees and no hidden costs. This can save substantial amounts on large foreign purchases.

For real estate purchases, you can use Wise to transfer money between your UK and US bank accounts at low rates.

Alternatively, you can also open a Wise Multi-Currency Account to hold and manage money in 40+ currencies including USD and GBP, spend with the linked debit card and convert currencies with mid-market exchange rate.

What are the tax implications?

You will need to consider the tax implications when buying US property as a UK citizen. This is especially important if you remain a UK tax resident, as the UK taxes residents on their worldwide income and gains, including overseas property income and disposals.

Fortunately, the US and UK have double tax treaties to help prevent payment of tax twice on the same income.

In the US 🇺🇸

One-off and ongoing property-related taxes in the US may include:

• Transfer tax: Taxes or recording fees payable on purchase or sale of property, varying by state and local jurisdiction. These are often much lower than UK Stamp Duty, but can be up to around 4% of the sale price.
• Property tax: An annual tax levied by US states and municipalities, usually up to 2% of the property value.
• Income tax: You will usually have to pay this on any rental income on the property at the standard progressive rates. State income taxes may also apply.
• Capital Gains Tax: Due at rates of up to 20% on the sale of property owned for more than a year (gains on sales owned for less than a year are included with income tax).
• FIRPTA: A withholding tax of 15% of the gross sale price usually withheld by buyers when purchasing from a foreign owner. This is a withholding mechanism rather than the final tax liability, and excess amounts may be reclaimed by filing a US tax return.
• Inheritance/estate tax: Inheritance tax in the US only applies in five states, while federal estate tax can apply to real estate owned by non-US citizens. The standard exemption available to non-US domiciliaries is much lower than the exemption available to US citizens and residents (often effectively only $60,000 before treaty relief). The UK-US estate tax treaty may provide additional relief.

In the UK 🇬🇧

If you remain a UK tax resident, you will be liable for tax on your worldwide income. This could include:

• Income tax: On rental income at the progressive rates.
• Capital Gains Tax: Usually at rates of either 18% or 24% depending on taxable income.
• Inheritance tax: Up to 40% above available allowances and reliefs.

As tax can be complicated, particularly when dealing with cross-border obligations, it’s a good idea to seek advice from a qualified professional before making any overseas purchase.

Local laws and regional variations

Aside from differences in local taxes and property markets, each US state has its own property laws. These laws cover everything from the property-buying process to restrictions on buying certain types of property or land.

Many states have introduced restrictions affecting foreign ownership. Since 2021, a total of 44 states have proposed or enacted laws limiting property ownership by certain foreign individuals, governments, or companies, and 28 states are considering legislation related to foreign property ownership.

Most of these measures target buyers connected to “foreign adversary” nations – typically China, Iran, North Korea, and Russia – or foreign-controlled companies. In many cases, the restrictions focus on agricultural land, land near military bases or critical infrastructure, or large rural properties rather than ordinary residential homes.

Because the rules vary significantly by state, it is a good idea to check local requirements before purchasing. A local real-estate attorney, title company, or realtor can usually provide guidance. You can also use the Committee of 100 state legislation tracker to review current restrictions by state.

Renting out your property: is it allowed? 🤔

Yes – UK citizens and other foreign nationals can be landlords in the US. There are no US citizenship or residency requirements for renting out US property.

However, things to bear in mind include:

• Landlord licensing: Some states or localities have landlord licensing or registration requirements.
• Insurance: Landlord insurance is advisable and may be a requirement if you take out a mortgage.
• Tax: You’ll usually have to pay income tax on rental income.

In most parts of the US, foreign owners can turn their property into a short-term holiday rental. However, some cities and counties have restrictions on short-term lets. These include New York City and Los Angeles

Buying land in the US

The rules for buying land in the US are similar to those for buying real estate. There are no federal restrictions on UK citizens buying land to build property. However, some states have laws restricting foreign ownership of certain types of land, such as agricultural land or land near military bases/critical infrastructure.

You can find more information on the Committee of 100 state legislation tracker.

Getting a mortgage: Should I get one in the US or the UK?

You can look into getting a mortgage in either the US or the UK. The best option will ultimately depend on your individual circumstances. Many US banks and mortgage brokers offer mortgages to non-residents, although the requirements are usually stricter (e.g., larger down payment).

UK lenders may also provide financing for overseas property purchases. This is often simpler to arrange, especially if you already own property in the UK or have an existing UK mortgage, but it comes with specific risks.

Factors to take into account include:

• Currency risk: A US mortgage means repayments are made in USD, which reduces exposure to exchange-rate fluctuations if the property and any rental income are also in dollars. Borrowing in GBP for a US property can create additional currency risk if the pound weakens against the dollar.
• Tax/accounting: Managing tax and accounting is often simpler when both the property and mortgage are in the same country and currency.
• Mortgage structure: Both countries offer fixed- and variable-rate mortgages, but terms can differ significantly. In the US, longer fixed-rate periods (such as 15- or 30-year fixed mortgages) are more common.
• Down payment/deposit: Non-residents obtaining US mortgages typically need a down payment of around 25–40%, although this can be higher in some cases. UK financing may allow you to borrow against existing property equity instead.
• Other financial requirements: US lenders may require proof of income, cash reserves, and local credit history, which can be more difficult for non-residents or new arrivals.

Before taking out a mortgage in either country, it’s important to compare lenders carefully and consider the long-term financial implications, including exchange-rate exposure, taxes, and refinancing flexibility.

The verdict: Should you buy a house in the US as a UK citizen?

Pros	Cons
✅ Stable and varied property market ✅ Chance to live in the US if you have a visa/residency ✅ Nice holiday home if you live abroad ✅ English-speaking expat communities across the country ✅ Possibilty of rental income with high yields ✅ Can buy and get a mortgage as a non-resident	❌ High upfront costs, with down payments sometimes 40% or higher ❌ Tax complexity, with both federal and state taxes applying, plus dealing with cross-border tax issues ❌ Currency fluctuations can increase mortgage repayments ❌ Difficulties of remote property management if you live abroad

Useful resources

(Information last checked on 26th May 2026)

Expat-friendly real estate agents

• Christie’s International Real Estate – range of properties in areas such as New York, Florida, and California
• Compass – expat-friendly brokerage service with good digital experience for remote buyers
• Sotheby’s International Realty – renowned luxury property specialist with good international buyer experience

Main expat areas in the US

• Florida – popular for the warm climate and holiday-home culture, especially in cities like Miami and Orlando
• New York – large international community and home to many UK professionals in sectors such as finance, law, and media
• California – global tech hub with a strong international presence and a thriving startup culture
• Texas – more affordable city with lower housing costs and no state taxes but strong job growth