Can I own property in United States?

A citizen of United States living abroad: Yes. A US citizen living abroad buys like any citizen. A foreign national: Yes, with conditions. No federal restriction on a foreign national buying residential property, with or without a visa. A growing list of states restricts buyers connected to named countries, Florida's 2023 law being the widest, and farmland purchases must be reported to the USDA.

Does the rent agreement need registering?

Never. A signed lease is complete on signing; recording in the county land records is possible for very long leases but not done for homes.

Who withholds tax on the rent, and how much?

Whoever pays the rent to the foreign owner: the property manager if there is one, otherwise the tenant, who must then register as a withholding agent. Under the treaty: The Australia–US treaty does not lower the US default of 30 percent on gross rent; the landlord elects net taxation under section 871(d), gives the manager Form W-8ECI, and withholding stops. The US tax is claimed as a foreign income tax offset.

How does the rent reach me in Australia?

A non-resident may open a US account in person at many banks on a passport and a US address or ITIN; otherwise the property manager collects into a trust account and wires the balance. No capital controls and no exit tax. Rent moves abroad by wire or a remittance service; nothing to declare on the US side beyond the tax return. No limit and no declaration for the transfer itself. The income was taxable when it arose.

Renting out property in United States while living in Australia

United States's rules for a landlord living in Australia: ownership, the rent agreement, who withholds tax, and how the rent reaches you.

General information, not legal or tax advice. Rules change and your situation may differ. Check the sources on this page and confirm with a lawyer or accountant in the country before you act.

Desk research Last reviewed 1 October 2026 Report an inaccuracy

The short answers

Can I own property in United States?: A citizen of United States living abroad: Yes. A US citizen living abroad buys like any citizen.; A foreign national: Yes, with conditions. No federal restriction on a foreign national buying residential property, with or without a visa. A growing list of states restricts buyers connected to named countries, Florida's 2023 law being the widest, and farmland purchases must be reported to the USDA.
Does the rent agreement need registering?: Never. A signed lease is complete on signing; recording in the county land records is possible for very long leases but not done for homes.
Who withholds tax on the rent, and how much?: Whoever pays the rent to the foreign owner: the property manager if there is one, otherwise the tenant, who must then register as a withholding agent. Under the treaty: The Australia–US treaty does not lower the US default of 30 percent on gross rent; the landlord elects net taxation under section 871(d), gives the manager Form W-8ECI, and withholding stops. The US tax is claimed as a foreign income tax offset.
How does the rent reach me in Australia?: A non-resident may open a US account in person at many banks on a passport and a US address or ITIN; otherwise the property manager collects into a trust account and wires the balance.; No capital controls and no exit tax. Rent moves abroad by wire or a remittance service; nothing to declare on the US side beyond the tax return.; No limit and no declaration for the transfer itself. The income was taxable when it arose.

Renting out property in United States

What applies because the property is in United States, whoever owns it.

Who may own residential property

Who may own residential property, by audience
Citizens living in the country	Allowed Anywhere.
Residents of any nationality	Allowed Residency changes nothing; a green-card holder or visa holder buys like anyone else.
Citizens living abroad	Allowed A US citizen living abroad buys like any citizen.
Foreign nationals living abroad	With conditions No federal restriction on a foreign national buying residential property, with or without a visa. A growing list of states restricts buyers connected to named countries, Florida's 2023 law being the widest, and farmland purchases must be reported to the USDA.

Letting it out from abroad

May a non-resident owner let it: Yes, with no permit and no residency. The tax rules, not property law, are what a non-resident landlord has to get right.
Licences, permits, landlord registration: Local. Many cities require a rental registration or licence and periodic inspections; short-term letting is permitted, licensed or banned city by city.
Local agent or representative: No, but a property manager is usual, and the manager becomes the withholding agent for tax.

The rent agreement

Written agreement required: Required by most states' statute of frauds for a term over a year; shorter leases may be oral but never are in practice.
Mandatory standard form: None nationally. State realtor associations publish standard leases that most landlords use; a few cities mandate clauses.
Language: Any. English in practice; some states require a translation when the lease was negotiated in another language.
Registry: None. Residential leases are not recorded with any registry.
When registration is required: Never. A signed lease is complete on signing; recording in the county land records is possible for very long leases but not done for homes.
Who registers: Not applicable
Registration cost: Not applicable
If it is not registered: Not applicable
Stamp duty: None on leases.
Notarisation and witnesses: Not required for a residential lease in nearly every state.
E-signature: Valid everywhere under the federal ESIGN Act and each state's Uniform Electronic Transactions Act; any method that shows intent works, with no identity scheme involved. Platforms such as DocuSign are the norm for remote landlords.
The usual term: Twelve months, then month to month unless renewed.

Rules the agreement must respect

Deposit: State law. California caps it at one month's rent since July 2024; New York at one month; many states have no cap. Several states require the deposit in a separate account and itemised deductions within a set number of days.
Rent increases: Free at renewal in most states. Rent control is local: New York City, parts of California under its statewide cap, Oregon, and a few others.
Notice periods: State law, commonly thirty days for a month-to-month tenancy and longer after a year's occupancy in some states.
Disputes: The local court, through an eviction suit the landlord must win before the tenant can be removed by the sheriff. Self-help eviction is unlawful everywhere.
Mandatory disclosures: Federal: the lead-based paint disclosure and pamphlet for any home built before 1978. State and city: a long list that varies, from mould and bedbugs to flood zones and the landlord's agent.

Tax when the landlord lives abroad

Is the rent taxed here: Yes. Rent from US property is US-source income. Without an election it is taxed at a flat 30 percent of gross rent with no deductions; with the real property election under section 871(d) it is taxed at graduated rates on net rent after expenses and depreciation, which is almost always better.
Withholding at source: Yes
Withholding rate: 30 percent of gross rent, under IRS Publication 515, unless the landlord has elected net taxation and given the payer Form W-8ECI, after which no withholding applies and the landlord pays through a return.
Who withholds: Whoever pays the rent to the foreign owner: the property manager if there is one, otherwise the tenant, who must then register as a withholding agent.
What the tenant must register: The withholding agent files Forms 1042 and 1042-S each year and deposits the tax. A manager handles this routinely; an individual tenant rarely knows to.
How to reduce it: Form W-8ECI to the payer, backed by the election statement on the landlord's return, turns withholding off entirely. Tax treaties generally do not reduce tax on rent from immovable property.
Filing and tax ID: Form 1040-NR every year with an ITIN, applied for on Form W-7, reporting the rent on Schedule E; the state the property is in usually wants a return too. Selling triggers 15 percent FIRPTA withholding on the price.
VAT or GST on rent: No federal VAT or sales tax on residential rent. A few cities levy a tax on rent, and short-term lets attract hotel taxes.
Municipal and housing fees: Annual property tax to the county, often one to two percent of assessed value, paid by the owner, plus homeowners-association dues where they exist.

Money inside the country

How tenants pay: ACH transfer, Zelle, cheque or a property manager's portal. Cash is rare.
Currency of rent: USD
Bank account for a non-resident owner: A non-resident may open a US account in person at many banks on a passport and a US address or ITIN; otherwise the property manager collects into a trust account and wires the balance.
Paying rent to an overseas account: Allowed; the withholding rules apply regardless of where the money is sent.
Taking rent out of the country: No capital controls and no exit tax. Rent moves abroad by wire or a remittance service; nothing to declare on the US side beyond the tax return.

Living in Australia

What Australia asks of its residents who own and let property abroad.

Owning property abroad from here

Buying abroad: No restriction. An Australian resident may buy property anywhere the other country allows and move money out freely.
Reporting foreign assets and accounts: No register of foreign assets. Foreign rent is declared in the annual return as foreign income; the ATO receives account data from other countries under the common reporting standard.
Tax at home on foreign rent: Taxed. An Australian resident declares worldwide income, including rent from property abroad, and claims a foreign income tax offset for tax paid there, capped at the Australian tax on that income.
Bringing rent home: No limit and no declaration for the transfer itself. The income was taxable when it arose.
Digital identity for e-signing: There is no national signing identity. Any e-signature platform the foreign side accepts does the job, or a notarised paper signature where the other country insists.

Between Australia and United States

What applies to this pair of countries in particular.

Tax treaty between the two countries: Yes
Withholding under the treaty: The Australia–US treaty does not lower the US default of 30 percent on gross rent; the landlord elects net taxation under section 871(d), gives the manager Form W-8ECI, and withholding stops. The US tax is claimed as a foreign income tax offset.
The usual vehicle for this corridor: An ITIN and Form 1040-NR in the US; a property manager as withholding agent.
What most people do: Make the net election, file 1040-NR and the state return, and declare the rent in Australia with the offset.

Sources

IRS Publication 515: withholding of tax on nonresident aliens (rents, the 30 percent rule, Form W-8ECI) — www.irs.gov
IRS Publication 519: U.S. tax guide for aliens (the real property income election) — www.irs.gov
IRS: FIRPTA withholding on the sale of U.S. real property by a foreign person — www.irs.gov
IRS: how to apply for an ITIN — www.irs.gov
IRS: instructions for Form 1040-NR — www.irs.gov
IRS: the foreign tax credit — www.irs.gov
IRS: Report of Foreign Bank and Financial Accounts (FBAR) — www.irs.gov
FinCEN: report foreign bank and financial accounts — www.fincen.gov
IRS: United States income tax treaties, A to Z — www.irs.gov
eCFR: 24 CFR Part 35 Subpart A, lead-based paint disclosure on sale or lease — www.ecfr.gov
GovInfo: Public Law 106-229, the Electronic Signatures in Global and National Commerce Act — www.govinfo.gov
Florida Senate: SB 264 (2023), interests of foreign countries in real property — www.flsenate.gov
USDA: Agricultural Foreign Investment Disclosure Act reporting portal — www.usda.gov
California Legislature: AB 12 (2023), security deposits capped at one month — leginfo.legislature.ca.gov
Income Tax Department of India: the India–USA tax treaty — www.incometaxindia.gov.in
ATO: foreign investment in Australia, residential property — www.ato.gov.au
ATO: banning foreign purchases of established dwellings (extended to 30 June 2029) — www.ato.gov.au
ATO: vacancy fee return for foreign owners — www.ato.gov.au
ATO: residential fees for a foreign person — www.ato.gov.au
ATO: tax rates for foreign residents — www.ato.gov.au
ATO: foreign resident capital gains withholding, foreign residents and variations — www.ato.gov.au
ATO: Australian resident for tax purposes — www.ato.gov.au
Revenue NSW: surcharge purchaser duty — www.revenue.nsw.gov.au
State Revenue Office Victoria: understanding the absentee owner surcharge — www.sro.vic.gov.au
NSW Government: the standard residential tenancy agreement — www.nsw.gov.au
Consumer Affairs Victoria: lodging the bond with the RTBA — www.consumer.vic.gov.au
Attorney-General's Department: electronic signatures, documents and transactions — www.ag.gov.au
Income Tax Department of India: the India–Australia tax treaty — www.incometaxindia.gov.in