Do I need a US visa to buy US real estate?

No. Real-estate ownership and immigration status are completely separate in US law. Any foreign person can buy US property regardless of visa status. Owning property does not by itself grant any visa or right to live in the US — you still need a separate visa or ESTA for stays.

Can I close on a US property remotely without flying in?

Yes — most US states allow remote closings. The two main mechanisms are an Apostille-stamped power of attorney granted to a representative at closing (your US lawyer or agent), and Remote Online Notarization (RON) where you sign on video with a US notary. Florida, Texas, Virginia, and most other large-volume states accept RON. Closing documents are sent by FedEx or signed digitally; the title company recordings happen automatically.

Is property tax higher for foreign owners?

No — property tax is set at the county or municipality level and is the same for all owners regardless of nationality. The rate varies enormously by state: Texas can hit 2.5%+ of assessed value annually, while Hawaii is around 0.3%. Property tax is deductible against rental income on Schedule E.

Should I form a Delaware or Wyoming LLC, or one in the state where I buy?

For a single-property purchase, form the LLC in the state where the property sits. Out-of-state LLCs (e.g., Delaware LLC owning Florida property) must register as a foreign LLC in the property state anyway, doubling the annual fees. The Delaware/Wyoming advantage shows up only when you own multiple properties across states or want true asset-protection layering.

Can I get a US bank account without an SSN?

Yes, but you need an ITIN (Individual Taxpayer Identification Number — apply via IRS Form W-7, takes 6–10 weeks) or a passport-based foreign-national account through banks that offer them: HSBC Premier, Wells Fargo International, BNY Mellon, and several smaller institutions. A German-affiliated US real-estate agent or banker can usually open one for you concurrent with the property closing.

A German Citizen's Guide to Buying US Real Estate

The actual sequence of a US property purchase

A US transaction involves more parties than a German Notar-centered closing. Typical steps: 1) make an offer through a buyer's agent (whose commission is paid by the seller in most states until the 2024 NAR settlement, after which the buyer increasingly pays directly), 2) seller accepts; the offer becomes a contract, 3) deposit ("earnest money," typically 1–3% of price) goes into a third-party escrow account, 4) inspection period (usually 7–14 days) — buyer can withdraw if material defects emerge, 5) appraisal (required if financing), 6) title search by a title company; title insurance issued at closing, 7) closing — all parties sign at the title company office, deed is recorded with the county. Total elapsed time is usually 30–60 days for cash purchases, 45–90 days when financing. There is no German-style notarization (öffentliche Beurkundung) — the title company handles authentication.

LLC vs. personal title — which to choose

Buying through a single-member LLC (Limited Liability Company, formed in your purchase state or in Delaware/Wyoming) gives you liability isolation and privacy: the deed records the LLC name, not yours. For investment property and any property you intend to rent out, this is usually worth doing. Costs are modest — $100–$500 setup, $50–$300 per year ongoing. Disadvantages: a single-member LLC owned by a non-resident must file Form 5472 + 1120 with the IRS each year (otherwise $25,000 penalty per missed filing — this is one of the IRS's most aggressive enforcement areas). For a personal residence you actually live in, personal title is simpler and avoids the 5472 obligation. The deciding factors are usually rental intent, asset protection from frivolous litigation, and how much you value owning the property visibly under your own name.

Financing as a non-resident

Most US lenders run their underwriting models on US credit scores. As a German with no US credit history, mainstream banks (Wells Fargo, Bank of America, Chase) will decline. Three workable paths: 1) a foreign-national mortgage program through a specialty lender — typically requires 25–30% down, accepts foreign income documentation (translated tax returns, employer letters), with rates 0.5–1.5% above standard US rates. HSBC, Citi (private banking tier), CitizensBank, BNY Mellon Wealth, and several smaller Florida and California lenders offer these programs. 2) Cash purchase, then refinance after establishing US credit (12–18 months of US presence usually unlocks standard programs). 3) Cross-collateralized lending against German assets through a German bank with US operations (rare, available mostly to private-banking clients). Pre-approval before house hunting is essential — the typical foreign-national program takes 30–45 days to underwrite a specific property.

FIRPTA — what happens when you sell

When a non-resident foreign person sells US real estate, the buyer is required by federal law (FIRPTA — Foreign Investment in Real Property Tax Act) to withhold 15% of the gross sale price and remit it to the IRS at closing. This is a withholding, not the final tax — you reconcile it on a Form 1040-NR for the year of sale. If your actual capital gains tax is less than 15% of the gross price (which it almost always is — 15% of gross is enormous), you file for a refund. Two ways to reduce the bite: 1) apply for a withholding certificate before closing (Form 8288-B, typically 45–90 days processing), which lets the buyer withhold the actual estimated tax instead of 15% of gross; or 2) accept the withholding and recover via tax filing. Owning through an LLC (treated as a US person for FIRPTA purposes if it has elected corporate treatment) can change the analysis — get specific advice.

Renting out the property

A non-resident foreign person renting out US real estate can choose between two tax regimes. Default: 30% gross-rents withholding under §1441 — your tenant (or property manager) withholds 30% of every rent payment and sends it to the IRS. No deductions allowed. This is almost always punitive. Alternative: file Form W-8ECI ("Effectively Connected Income") with your tenant to opt into net-rents taxation. You file Form 1040-NR Schedule E annually, deduct mortgage interest, depreciation, repairs, property tax, management fees, etc., and pay tax only on net rental income at graduated rates. Almost every German owner-landlord should make this election. State income tax also applies in most states (Florida and Texas are no-state-tax exceptions). German tax obligations on the same rental income require a Foreign Tax Credit reconciliation — coordinate with both your US and German tax advisors.

Finding a German-affiliated agent and team

For a non-resident transaction, working with a German-affiliated US real-estate agent can save weeks of friction: they handle remote closings (you sign by Apostille-stamped power of attorney or via secure e-sign), recommend foreign-national lenders they have closed with before, coordinate with title companies experienced in foreign buyers, and connect you with cross-border tax advisors. You will still need a US lawyer for the transaction (especially for LLC formation and the title review) and a US tax advisor for the FIRPTA and rental-tax planning. Browse the Real Estate category on this directory, filter to your target city, and shortlist agents who explicitly mention non-resident or international buyers in their listings.