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How to buy a house in New York as a foreigner?
Buying a house in New York doesn't have to be difficult if you follow these steps. In this guide, we'll walk you through the whole process.
Buying property in New York is a major goal for many foreigners, but it can be achievable with the right information. The city has a unique real estate market: diverse, competitive, and full of opportunities, but it also has its own rules that you should understand before getting started.
In this guide, you’ll find a breakdown of the legal requirements, real estate costs, taxes, and a step-by-step overview of the buying process in 2026, along with practical tips to help you avoid common mistakes. If you’re thinking about investing or settling in the Big Apple, keep reading.
Requirements for foreigners buying a house in New York
These are the main requirements for buying a house in New York:
Can foreigners buy property in New York?
Yes. The United States does not place any general restrictions on foreigners buying property, regardless of their immigration status. You don’t need a residency visa, a Green Card, or citizenship to own property in New York. This makes the New York real estate market one of the most accessible in the world for international buyers.
However, there are significant differences depending on the type of property you wish to purchase.
Types of property and their characteristics
In New York, there are two main types of property:
- Condos: They are among the most accessible for foreign buyers. You purchase the property in fee simple, meaning you fully own your unit along with a proportional share of the common areas. Condo boards also tend to have more flexible approval processes for international buyers.
- Co-ops: They make up more than 70% of Manhattan’s residential market. Instead of buying the apartment itself, you buy shares in a company that lets you live in a specific unit. The board can approve or reject applicants, and many co-ops are known to be stricter with foreign buyers, especially those without U.S. income or who don’t live in the U.S.
Documents and financial requirements for buying a house in New York
To begin the process as a foreigner, you will need:
- Valid passport
- ITIN (Individual Taxpayer Identification Number) if you do not have a Social Security number
- Proof of sufficient funds (bank statements, letters of financial reference)
- U.S. credit history or international equivalent
- Proof of income or tax returns (local or from your home country)
If you plan to finance the purchase with a mortgage, the requirements are more stringent. If you pay in cash, the process is much simpler.
Do you need a lawyer?
In New York, you don’t have to hire a real estate lawyer by law, but it’s very common and strongly recommended. The buying process is more complex than in other states, and the lawyer checks contracts, handles the paperwork, and protects your interests. Fees are usually between $1,500 and $3,000.
How much does a house cost in New York?
New York is one of the most expensive cities in the world, but prices vary widely depending on the neighborhood, the type of property, and the ownership structure.
Average price by area:
- Manhattan: The average price per square meter is over $14,000–18,000. A one-bedroom apartment can cost anywhere from $800,000 to $1.5 million.
- Brooklyn: Prices are more affordable, but in neighborhoods like Park Slope or Williamsburg they typically range from $8,000 to $11,000 per square meter. You can find properties starting around $500,000.
- Queens: It offers better value for money, with average prices around $5,000–7,000 per square meter. Many of the best neighborhoods in New York for families or newcomers are located in this borough.
- The Bronx and Staten Island: The most affordable of the five boroughs, with apartment prices starting at $350,000–400,000.
Maintenance costs:
Co-ops charge a monthly maintenance fee, usually between $500 and $3,000. Condos have lower common charges, but property taxes are billed separately. Overall, annual maintenance costs typically come to about 1% to 2% of the property’s value.
To better understand the cost of living in New York and how buying a property fits into your overall budget, it’s important to look at ongoing expenses beyond just the purchase price of the home.
Taxes when buying a house in New York
Buying property in New York comes with a relatively high tax burden, and understanding these costs in advance can help you avoid surprises at closing.
When buying:
- Mansion Tax: A progressive tax that applies to purchases over $1 million. It ranges from 1% (for properties between $1M and $2M) up to 3.9% for properties worth more than $25 million.
- State transfer tax: 0.4% of the sale price for residential properties up to $3 million; 0.65% for amounts above that figure.
- NYC Transfer Tax: In addition to the state tax. 1% for properties valued at up to $500,000 and 1.425% for amounts above that value.
- Mortgage Recording Tax: If you use financing, you pay between 1.8% and 1.925% of the loan amount.
Annual taxes: Property tax varies depending on the type of property and can range from about 0.5% to 1.5% of the property’s value per year. To fully understand your tax obligations in New York, it’s a good idea to consult a tax advisor who specializes in international taxation.
Upon sale: Capital gains are taxed at both the federal and state level. For non-residents, the federal rate can go up to 20% on the profit, plus New York state tax, which can add another 6% to 10.9%.
Double taxation treaties: The U.S. has tax treaties with several countries (including Spain and Mexico) that may help reduce your tax burden. It’s best to check with a specialist before assuming you’ll be taxed at the full rate.
If you’d like to learn more about the city’s tax system, check out our guide to New York City taxes.
Steps for buying a house in New York
Below is a simplified step-by-step guide based on how the buying process typically works for foreign buyers in New York.
1. Set a budget and decide on the type of property
Before you start looking, decide whether you want a condo or are willing to take on the more demanding process of buying a co-op. Decide whether you’ll pay in cash or need a mortgage.
2. Search for properties
The main websites are StreetEasy, Zillow, and Realtor.com. You can also use agencies that work with international buyers. A local real estate agent is very important. In New York, the seller typically pays the broker commission, so buyers usually do not pay it directly.
3. Verify the property’s legal status
Your lawyer will review the property title, any outstanding debts, existing mortgages, and the status of community fees. This step usually takes two to four weeks.
4. Sign the contract and pay the deposit
A purchase contract is signed, and a deposit of 10% to 20% of the agreed price is paid. Unlike in many other markets, the purchase contract in New York is typically prepared by the seller’s lawyer.
5. Board approval process (if applicable)
In co-ops, this step can take 30 to 90 days. You’ll need to prepare a board package with detailed financial information, personal and work references, and bank statements.
6. Closing the transaction
The closing takes place with all parties involved, including buyers, sellers, lawyers, and bank representatives. Final documents are signed, and the funds are transferred. The whole process, from offer to closing, usually takes 60 to 120 days.
How do you pay for a house in New York?
Common ways to pay for a property in New York:
- International transfers: It’s the most common method for foreign buyers. You must report the funds to the IRS if they exceed certain thresholds. Large transfers may also be subject to extra checks for regulatory compliance.
- Mortgages for foreigners: Some U.S. banks and private lenders do offer mortgages to non-residents, although the requirements are usually stricter. You usually need a 30% to 40% down payment, higher interest rates, and more paperwork. International banks that operate in the U.S. can also help.
- Interest rates: In 2026, mortgage rates in the U.S. are generally around 6% to 7% for conventional loans, although they can be slightly higher for foreign buyers.
- Cash payment: This makes the process much simpler, since it removes the need for bank approval, and can give you an advantage in negotiations. It’s the preferred option for international investors.
- Exchange rate: If your funds are in another currency, keep an eye on exchange rates and consider using specialized international transfer services to reduce fees.
Tips before buying a house in New York
Staying connected from the moment you arrive is essential when visiting properties in New York, so it’s worth setting up an eSIM before your trip.
Their Always On plan is useful if you plan to make several visits throughout the year, since it keeps you connected without having to worry about renewals. Staying online while exploring neighborhoods, browsing listings, and contacting agents can make a real difference in such a competitive market. And Holafly’s monthly plans let you move between cities without needing to switch eSIMs.
- Take your time to research the market. New York has clear price cycles, so check trends before you commit. Knowing what life in New York is like, including the pros and cons, will help you decide if it’s the right city for you.
- Work with local professionals. A real estate lawyer, an accountant experienced with foreign buyers, and a trusted real estate agent are essential.
- Always visit in person before buying. No listing site can replace walking around the neighborhood, meeting the neighbors, and getting a feel for the building. Check transport, amenities, and safety at different times of day.
- Be careful with scams. Watch out for very low prices, owners who won’t show the property in person, requests for deposits without a signed contract, and anyone who promises to “guarantee” board approval.
- Consider renting first. If you’re not sure about the neighborhood or the type of property yet, living in New York as a renter for a year can give you valuable insight before making a major investment.
Frequently asked questions about buying a house in New York
The market is still competitive, especially in Manhattan and Brooklyn. However, for those looking for long-term financial stability or a base in one of the world’s most important cities, New York remains a strong investment.
No. Foreigners, regardless of their immigration status, can buy property in New York without needing a residency visa or a Green Card.
A condo means you directly own the property and it’s easier for foreign buyers. A co-op means you buy shares in a company, and the board can reject buyers. Many co-ops are stricter with non-residents.
Yes, but the requirements are stricter. You usually need a 30–40% down payment, a strong financial history, and extra paperwork. Many international buyers choose to pay in cash instead.
The main ones are the Mansion Tax (for properties valued at over $1 million), the state and municipal transfer taxes, and the mortgage recording tax if financing is involved.
About 60 to 120 days from accepted offer to closing, depending on the type of property. Co-ops usually take longer because of the board approval process.
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