Selling property in the US: Complete guide for expats

This guide provides a roadmap to selling property in the US, covering legal requirements, market insights, step-by-step processes, cost breakdowns, tax implications, and smart financial management of sale proceeds.

Plus, in case you need to repatriate funds after selling your US property, we’ll also cover international money transfer considerations, demonstrating how providers like Wise can compare with banks when transferring large sums internationally.

Key takeaways

• Before you can sell your property in the US it’s important to understand the practical and legal framework used
• Getting professional help from a local realtor, as well as your attorney and a tax professional can help the process go smoothly
• When selling a property in the US you’ll usually have to pay for realtor fees, and Capital Gains Tax (CGT) may also apply
• Selling any property can take a significant time, depending on market conditions, the property type, and the time taken to manage the legal handover
• Once you’ve sold your property in the US you must settle your financial obligations, and can then transfer your funds – if you’re sending your payment overseas, a provider like Wise can help you cut the overall costs of your transfer

Legal requirements for selling property in the US

Selling a property can be a complex process – but before you even start it’s important that you understand all your local and cross border legal obligations. This guide covers key points – but it’s also good practice to get local advice from professionals who can address your specific situation and ensure you’re prepared properly to sell your property in the US.

Some legal requirements it helps to know about:

• Some states require you to have an attorney when you sell a US property, while others do not – having legal advice can help even if it’s not mandatory as managing the legal aspects without one can be difficult and risky
• You do not have to have an agent to support the sale process, but using an agent can help you navigate property marketing and the sale negotiation
• You will be asked to provide proof of your identity and address at various points in the transaction, to comply with US law.
• Before marketing your property you need to gather your survey of your property, the deed or your mortgage agreement, the most recent real estate tax bill, as well as condominium documents or homeowner association rules and fee schedule if applicable

What are the documents needed to sell a property in the US?

The full range of legal documents required for a property sale in the US can vary a little depending on the type of property, and the state it’s in

Your attorney will manage most of the process, letting you know what paperwork you need to prepare – usually including:

• Your own photo ID and proof of address, and that of any co-owners
• Property title deeds or your mortgage certificates
• Proof of payment of your real estate taxes
• A plan or survey of your property

How to sell your house in the US: Step-by-step guide

While every journey is a little different, the process to sell property in the US will look quite similar in most cases. Here’s an outline of the usual steps involved with selling a property in the US.

Step 1 – Get professional help and start the market analysis

Before you can put your US property on the market, you’ll need to get a valuation and prepare your local support team.

Although it’s not mandatory to use an agent, a licensed local realtor can help you assess your property’s market value. You may also want to consider whether undertaking any repairs or renovations would increase the property value.

If this is something you consider, you’ll need to weigh the improvement costs against potential gains in asking price to decide if it’s worthwhile.

Ultimately, a broad range of factors influence property value including location, property type, age, size, and condition – getting professional help to make a realistic price assessment can be a huge help.

At this early stage you can also start to pick out other professionals who may help you such as an attorney to handle the legal aspects.

Step 2 – Preparing documentation and advertising your property

Your next steps will be supported by your local advisors and must include preparing the legal paperwork and advertising your property.

Your agent will take a lead on preparing property descriptions and area information. Together you can create your preferred marketing strategy to help your property sell as quickly as possible.

Step 3 – Managing viewings, receiving and evaluating offers

Once your property is advertised, it’s time to start conducting property viewings to find a buyer. Your agent can support this – particularly handy if you’re non-resident.

Once you have received an offer – or even multiple offers – your agent and legal advisor can help you understand the offer format and structure, which you may not be familiar with.

Step 4 – Contract exchange and legal completion

After agreeing a sale, you will need to have your attorney draw up a contract covering the transfer of ownership. There may be questions arising from the buyer – these will be handled by your attorney, until you’re all agreed on the details of the transfer.

Once the contract is accepted by all parties, the buyer and seller sign the contract and the arrangement is binding. At this point the buyer will pay the deposit to be held in escrow, and all due diligence checks will need to be completed.

Step 5 – Settlement and fund transfer

The final step is called closing – where the ownership passes to the buyer, on an agreed date.

The property ownership passes over to the buyer once the outstanding purchase cost has been sent to the attorney, and the sale is completed.

You’ll then receive the net sale proceeds by bank transfer. You’ll need to sort out your tax obligations- and also how best to send your money to your home country once you’ve received it. Using a provider like Wise, Xe or OFX can help you repatriate your money with low, fair fees and great exchange rates.

Wise uses the mid-market rate which means there’s no fee added into the rate used for conversion. Over the course of a high value payment this can make a huge difference to the overall amount you pay. More on that later.

Tax implications and responsibilities for property sellers

So – what tax do you pay if you sell a property in the US?

Ultimately the tax implications of selling a US property vary depending on factors including whether you meet ownership and use tests, and the value of the sale.

Non-residents selling US real property are usually taxed in the US regardless of where they reside. However, you may be able to use tax credits or double taxation treaties to limit the amount of tax you pay overall in this case.

Property sale taxes: US residents

As a US resident you may need to pay capital gains tax (CGT) if you do not meet ownership and use tests. These tests state that in the 5 years prior to the sale of the property you must have owned and used your home as your main residence for at least 2 years, although the 2 year periods to meet each qualifying criteria do not necessarily need to overlap as long as they’re within the same 5 year period.

If you need to pay it, capital gains tax is paid on the increase in value of an asset. Rates depend on your overall income in that tax year. Usually you pay a rate of 0%

if your taxable income is less than or equal to:

• $47,025 for single and married filing separately
• $94,050 for married filing jointly and qualifying surviving spouse
• $63,000 for head of household

Beyond this, a capital gains rate of 15% applies if your taxable income is:

• More than $47,025 but less than or equal to $518,900 for single
• More than $47,025 but less than or equal to $291,850 for married filing separately
• More than $94,050 but less than or equal to $583,750 for married filing jointly and qualifying surviving spouse
• More than $63,000 but less than or equal to $551,350 for head of household

If your income exceeds these brackets, CGT is likely to rise to 20%.

Property sale taxes: Non-residents

As a non-resident you’re likely to have to pay CGT on the sale of your US property, in the same way a US resident would if they do not meet ownership and use tests. Depending on your situation you may also be asked to pay tax on the sale in your home country, in which case double taxation treaties may help you lessen your overall tax burden.

The tax you pay on the sale of your US property depends on your circumstances, so you’ll need to get professional support or ask your attorney to help you calculate what you owe.

As tax is complex – and even more complicated if you’re navigating an unfamiliar system – you’ll need to get professional advice to ensure you comply with all your legal obligations.

Income tax declaration requirements

If you do not meet the ownership and use tests, and need to pay capital gains tax due to your income and the property sale value, you must report the gain from the sale of your home in your normal tax return.

If you qualify to be excluded from CGT under the ownership and use tests, but do not claim the exclusion, you must report the taxable gain on your tax return.

Finally, taxpayers who receive Form 1099-S, Proceeds from Real Estate Transactions, need to complete this to report the sale even if they did not make a gain from the sale price.

Is it necessary to declare a property sale on income tax as a non-resident in the US?

Non-residents generally have to pay tax on gains from property sales regardless of residency status.

Non-residents should seek professional tax advice to ensure they are declaring all relevant details after selling a property. You may also need to take tax advice in your country of tax residence, as many countries tax worldwide income including foreign property sales.

International considerations for cross-border property sales

If you’re a foreigner selling a US property it’s important to know the regulatory requirements and your tax reporting obligations in both the US and your own home country. Depending on your home country and where you’re a tax resident you may have obligations to the authorities in more than one location.

Once you’re confident that you’ve settled all your tax obligations you may want to move your funds from the US to your home country. In this case, bear in mind that source of funds documentation is typically needed when transferring large amounts internationally. In this case, that may be proof of your property sale and a bank statement showing the money reaching your US bank for example.

It’s also crucial to find providers for cost-effective international transfers and currency exchange management. When you’re sending a high value payment, small percentage changes in the exchange rate used can mean a large fee to pay in the end.

Finding a provider which uses the mid-market rate, or as close as possible to it, can often be the best way to ensure you’re getting a good deal on your transfer. Providers like Wise can help.

Bank vs. Wise: International transfers of large sums

You could send your money home with your US bank. However, using a specialist service like Wise may mean you pay less and get your money faster.

Wise doesn’t work like a bank when it comes to overseas payments. Your transfer is treated as a local payment and passed through the Wise network of bank accounts rather than using SWIFT, which is the preferred method for wires. This can mean your money moves faster, attracts fewer fees and also gets a better exchange rate. Here’s a summary:

Sending payment USD to EUR	Sending money with Wise	Sending money with a US bank
Payment type	Local transfer	SWIFT
Send money fees	Transparent fee shown before you transfer Discount on sending money fees for sending more than 20k GBP abroad (about 26k USD)	Often no upfront fee for foreign currency payments
Exchange rate	Mid-market rate	Bank rate which may include a markup
Other fees	Payments made on local networks do not usually attract additional costs	Third party fees can apply which are deducted as the payment is processed
Speed	70% of payments are instant	3 – 5 days is common

It’s important to note here that Wise uses the mid-market rate, while a bank usually adds a percentage fee to the rate used. This is a common practice, but it can mean you’re paying more in fees than you expect. On high value payments in particular, this cost can add up significantly until the conversion cost is far higher than the upfront fee you’re paying for the transfer.

Wise offers a solution for international property sellers, with international transfers that use mid-market rates and transparent fees, which include a discount for sending large amounts abroad. You can also use Wise rate lock features to protect against currency fluctuations, and if you’d prefer you can receive your payment in USD to a Wise account to convert it at a later stage.

About Wise pricing: Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

How much does it cost to sell a house in the US? Cost breakdown

The costs of selling a property in the US can go beyond CGT. Here are some common fees to consider:

• Realtor commissions: US realtors can have very variable fees which are usually around 3% – 6% of the property value.
• Title and settlement fees: Often from 0.5% to 1% of the sale price
• Mandatory certificates and inspections: Generally the buyer pays for most surveys – but sellers are required to provide some official inspections in some cases, such as where termites may be a problem.
• Closing costs: Miscellaneous closing costs can quickly add up to 1,000 USD or more
• Pre-sale preparation costs: Don’t forget to factor in any specific costs for things like repairs to your property before you put it on the market.

How long does it take to sell a house in the US?

In general, the timeline for selling a property in the US can vary enormously based on factors like market conditions and seasonal variations, property type, location, and pricing, marketing effectiveness and presentation quality.

Finding a buyer could take anything from a few days to a few months – generally properties in cities move quicker as they may be in more demand. Budget for 6 to 10 weeks as a minimum, with many properties taking far longer to sell.

Tips and best practices for successful property sales

Here are a few final thoughts to make sure your property sale in the US is a success:

• Get professional legal advice: Selling a property in another country is tricky – you’ll need local legal advisors on hand to help you avoid costly mistakes and ensure compliance with all legal requirements.
• Bear in mind currency conversion costs: If you need to repatriate the funds from your sale you’ll need to find a provider which offers low overall costs, including a good exchange rate. Tools like forward contracts or limit orders which are available from currency specialists can also help.
• Price your property carefully: Use recent sales data from your local area, and get a professional valuation to make sure you’re pricing your property appropriately.
• Have a diverse marketing strategy: Advertise your property on multiple channels and use work of mouth if possible to build interest.

Conclusion

While selling property in the US can be complex, it’s achievable – and you can make the process far less stressful by engaging the right local support teams early on.

When selling a property in a foreign country you will need to take time to get to know local laws, market conditions, and financial obligations such as taxes on your property value. Bear in mind you may also have reporting or other duties in your home country.

Once you’ve successfully sold your property and it’s time to repatriate your funds, check out providers like Wise to make sure you get a great deal on your transfer. Wise uses the mid-market rate on currency conversion and has automatic discounts on fees when sending higher value amounts which may mean you spend less on fees and keep more for yourself in the end.

FAQs

What’s the best way to transfer my property sale proceeds internationally?

To transfer property sale proceeds internationally you’ll need to find a good value, secure service which offers low fees and a fair exchange rate. Providers like Wise which offer the mid-market rate on currency conversion and automatic discounts on fees for higher value amounts can be a good pick.

Do I need to pay tax on my property sale if I’m a non-resident?

You may need to pay tax on a property sale as a non-resident, including capital gains tax. Tax can be complex, so getting professional advice is essential to make sure you comply with all your obligations.

Do I pay tax in the country I live in if I sell a property in the US?

This can vary depending on your country of residence, your tax residence and your personal situation. Get professional advice if you are not sure of your tax obligations in the US or in your home country.

What happens when I sell a property in the US?

When you sell a US property you’ll need to settle any outstanding taxes payable to the US government, and your legal fees. You can then repatriate your funds if you choose to.

Is it necessary to use a realtor to sell my property?

It is not a legal requirement to use a realtor to sell a property in the US – but doing so can mean you have a smoother sale experience, and get a higher price for the property in the end.

What to consider when selling a property in the US?

Remember to check out the legal and practical requirements for selling a property in the US, which may be different to your home country. You’ll need a good local team to advise you on legal and tax matters, the local real estate market and how best to proceed with your sale.

Useful Resources

(Information last checked on 8th of October, 2025)

• Wise – for currency exchange and international transfer services
• OFX – for currency exchange and international transfer services
• IRS – tax considerations when selling a home
• IRS – sale of your home, including links to further reading
• IRS – capital gains tax
• American Bar Association – legal requirements when selling a home