International Buyers and Sellers in Houston: FAQ

FIRPTA, the Foreign Investment in Real Property Tax Act, applies when the seller is a foreign person under U.S. tax law. In most cases the buyer must withhold 15% of the sales price at closing and send it to the IRS, and the title company handles that withholding for the buyer. If the buyer will live in the home and the price is $300,000 or less, no withholding is required, and a reduced 10% rate can apply up to $1 million. Foreign sellers can apply for a withholding certificate (IRS Form 8288-B) to reduce the amount based on their actual tax, and they generally need a U.S. taxpayer identification number to file a return and claim any refund, so we recommend talking with a CPA early. A foreign buyer isn't subject to FIRPTA when buying, but it will apply when they later sell. See the IRS guide to FIRPTA withholding.

Only if the home is their principal residence. The exemption is for an owner's main home, so a Houston home owned from abroad or used as a second home doesn't qualify and is taxed on its full appraised value, without the $140,000 school district exemption or the 10 percent annual cap on appraisal increases. On a $450,000 home at Houston's typical 2.2 percent combined rate, that means a tax bill of about $9,900 a year instead of roughly $7,450 with a homestead, so budget for the full amount when you compare homes.

Yes, in most cases foreign citizens can buy residential property in Texas. A 2025 Texas law, Senate Bill 17, restricts purchases by certain individuals, companies and governments tied to China, Iran, North Korea and Russia, with exceptions that include U.S. citizens and lawful permanent residents. If it could apply to you, talk with a Texas real estate attorney before you make an offer.

Yes. Some lenders offer foreign national loans that don't require a U.S. credit history, but they usually call for a larger down payment, more documentation and a higher rate than a standard loan, and many international buyers pay cash. We can connect you with lenders who work with international buyers so you know your options before you make an offer.

Yes. We regularly sell for owners in other states and countries. We have the title company review any power of attorney before the first offer, handle access and vendors locally, and arrange remote or mail-away signing for closing. We can often also set up online notarization from almost anywhere in the world, as long as you have a webcam and an internet connection.

Often through online notarization with a webcam and an internet connection, when the title company and lender accept it. Otherwise, documents can be signed at a U.S. embassy or consulate, or before a local notary with an apostille in countries that use them, and some owners give a trusted person a power of attorney that the title company reviews in advance. We plan the method early so shipping or appointment times don't delay closing.

By wire transfer to the title company, after confirming the wiring instructions by phone at a number you already know, never one taken from an email. International wires can take several business days and may be held for bank compliance checks, so we plan for them early, along with any currency exchange.