Buying or Selling Property Across International Borders

How international real estate transactions work in South Carolina

Buying or selling property that crosses state or national lines involves more steps than a local transaction, but the core process remains the same: you find a property, make an offer, conduct inspections and appraisals, secure financing if needed, and close at a title company. The difference is that international deals add layers of paperwork around currency exchange, visa status, foreign ownership restrictions, and tax obligations in multiple countries. South Carolina welcomes foreign buyers and sellers, but each person's situation depends on where they are buying from, where they are buying to, and what their immigration status is.

Most international real estate in South Carolina involves Canadian or European buyers purchasing coastal property or retirement homes, or South Carolina residents buying vacation property abroad. The transaction itself happens through a South Carolina real estate agent and title company, just as a domestic sale would. However, you will need to work with an international tax accountant and possibly an immigration attorney to understand your obligations in both countries.

Key Takeaways

• Foreign nationals can buy residential property in South Carolina without restrictions, but some states and countries impose limits on agricultural or commercial land.
• You will need a U.S. tax identification number (ITIN) to open a bank account and close on property, even if you do not have a Social Security number.
• Financing from a U.S. bank typically requires a visa, permanent residency, or a U.S. co-signer; many foreign buyers pay cash or use international lenders instead.
• Selling U.S. property as a foreign national triggers FIRPTA withholding, which sets aside a portion of the sale price for federal taxes; your closing attorney handles this automatically.
• Currency exchange rates and timing can significantly affect your actual cost or proceeds, so working with an accountant before you commit to a price is worth the expense.

Getting a U.S. tax identification number and opening a bank account

Before you can close on property or open a U.S. bank account, you need an Individual Taxpayer Identification Number (ITIN). This is a nine-digit number issued by the IRS to non-citizens who have U.S. tax obligations. You do not need a visa, green card, or Social Security number to get one.

Apply for an ITIN by submitting Form W-7 to the IRS along with a copy of your passport and proof of your foreign status (such as a visa stamp or entry record). You can mail the application to the IRS address listed on the form, or in some cases apply through a Certified Acceptance Agent (CAA) in person. Processing takes four to six weeks by mail. Once you have your ITIN, you can open a bank account at most U.S. banks by providing the ITIN, your passport, and proof of your foreign address.

Some banks require additional documentation for foreign nationals, such as a letter from your employer or proof of income. Call ahead to ask what your specific bank needs. Having a U.S. bank account before you make an offer on property speeds up the closing process and makes it easier to wire funds for the down payment and closing costs.

Financing property as a foreign buyer

U.S. mortgage lenders have different rules for foreign nationals. Most require either a visa, permanent residency status, or a U.S. co-signer (such as a spouse or adult child who is a citizen or permanent resident). A few lenders work with foreign nationals on a case-by-case basis, but interest rates are typically higher and down payments are larger—often 30 to 50 percent instead of the 10 to 20 percent a citizen might put down.

Many foreign buyers choose to pay cash instead, which eliminates the financing hurdle and often makes their offer more attractive to sellers. If you do want to explore financing, contact a mortgage broker who specializes in international transactions; they can tell you which lenders will work with your visa status and what documentation you will need. Be prepared to provide tax returns, bank statements, and employment verification from your home country, translated into English.

International lenders and home equity lines from banks in your home country are another option. Some Canadian and European banks will lend on U.S. property if you have an account with them. The interest rates and terms vary widely, so compare offers before you commit.

Understanding FIRPTA withholding when you sell

FIRPTA (Foreign Investment in Real Property Tax Act) requires that when a foreign national sells U.S. real estate, the buyer's closing attorney must withhold 15 percent of the sale price and send it to the IRS. This is not a tax you pay on top of the sale—it is money held from your proceeds to cover your federal tax obligation on the gain.

The withholding happens automatically at closing; you do not have to do anything to trigger it. Your closing attorney will deduct the 15 percent from the money you receive and remit it to the IRS on your behalf. When you file your U.S. tax return for that year, you report the sale and claim the withholding as a credit against what you actually owe. If you owe less than 15 percent, you get a refund; if you owe more, you pay the difference.

There are exceptions to FIRPTA withholding—for example, if the property is your primary residence and you meet certain holding and use requirements, or if the sale price is under a certain threshold (which changes yearly). Your tax accountant can tell you whether an exception applies to your situation before you list the property.

State and local taxes on property ownership and sale

South Carolina has no state income tax, which makes it attractive to foreign buyers. However, you will owe property taxes to the county where the property sits, calculated as a percentage of the assessed value. Property tax rates vary by county—they range from roughly 0.3 to 0.6 percent of assessed value per year. Charleston County, Beaufort County, and Horry County (where Myrtle Beach is located) are popular with international buyers, and each has its own tax rate and assessment process.

When you buy property, the seller's property taxes are prorated at closing—you pay only for the days you own the property in that tax year. The county assessor's office will send you a bill each year, usually in the fall. You can pay online, by mail, or in person at the county tax office.

If you sell the property, you may owe capital gains tax in both the United States and your home country. The U.S. taxes the profit (sale price minus your original purchase price and improvements), and many countries do the same. A tax accountant in both countries can help you understand your total obligation and whether you can claim a credit in one country for taxes paid in the other.

Working with a real estate agent and title company

Most South Carolina real estate agents are comfortable working with foreign buyers and sellers. When you contact an agent, mention that you are an international buyer or seller early on—they can then guide you through the extra steps and connect you with resources like international tax accountants and immigration attorneys if you need them.

The title company handles the closing and ensures that the deed is recorded correctly with the county register of deeds. They also manage the FIRPTA withholding if you are selling, and they verify that you have the legal right to buy (for example, that you are not subject to sanctions or restrictions). Title companies in South Carolina are experienced with foreign transactions and can answer questions about what documents you need and what the timeline looks like.

Before you sign anything, ask the title company and your agent to explain any terms or processes you do not understand. Real estate documents are full of jargon, and it is better to ask questions now than to discover a surprise at closing.

Currency exchange and timing considerations

If you are buying property with money from another country, the exchange rate between your home currency and the U.S. dollar affects how much you actually pay. If the dollar strengthens before you transfer funds, your purchase costs more in your home currency. If the dollar weakens, it costs less. The difference can be thousands of dollars on a large purchase.

Some buyers lock in an exchange rate in advance through their bank or a currency exchange service, which protects them from rate swings. Others wait until closing to exchange money, accepting the risk that rates might move against them. Discuss this with your accountant and your bank before you make an offer, so you understand the true cost of the property in your home currency.

Timing also matters for tax purposes. If you buy and sell within a short window, you may owe higher capital gains tax in some countries. If you hold the property for a certain number of years, you may may have access to for a lower rate or an exemption. Your accountant can advise you on the tax implications of your timeline before you commit.

Frequently Asked Questions

Can a foreign national buy property in South Carolina without a visa?

Yes. South Carolina has no restrictions on foreign ownership of residential property. You will need an ITIN and a bank account to close, but you do not need a visa or green card. Some other states restrict foreign ownership of agricultural land, but South Carolina does not.

What if I want to rent out the property I buy?

You can rent out residential property as a foreign owner. You will owe federal income tax on the rental income, and you will need to file a U.S. tax return each year reporting that income. South Carolina has no state income tax, so you will not owe state tax on the rental income. Your accountant can help you understand deductions for mortgage interest, property taxes, maintenance, and other expenses.

Do I need a lawyer to buy or sell property internationally?

South Carolina does not require a lawyer for a real estate transaction—the title company handles the legal paperwork. However, an immigration attorney can advise you on visa implications if you are considering moving to the U.S., and a tax attorney can help if your situation is complex (for example, if you own property in multiple countries or have significant rental income).

How long does an international real estate closing take?

A typical closing takes 30 to 45 days from offer to closing. International transactions may take longer if you need time to arrange financing, get your ITIN, or coordinate with accountants and attorneys in multiple countries. Discuss the timeline with your agent and title company early so you can plan accordingly.

What happens if the property value drops after I buy it?

Property values can go down as well as up. You are responsible for the mortgage and property taxes regardless of value. If you sell at a loss, you cannot deduct the loss on your U.S. tax return (though you may be able to in your home country—ask your accountant). If you hold the property long-term, values often recover.