Yes, foreigners can buy property in Texas. Under Texas Property Code Section 5.005, a non-citizen has the same real and personal property rights as a U.S. citizen.1State of Texas. Texas Property Code Section 5.005 – Aliens No visa is required to hold title, and buying property does not create any immigration benefit. The big exception took effect on September 1, 2025: individuals and entities connected to China, Iran, North Korea, and Russia are now barred from acquiring most Texas real estate. Every other foreign buyer can purchase a home, ranch, commercial building, or vacant lot, but federal tax rules, identification requirements, and a handful of reporting obligations apply that do not touch domestic purchasers.
Who Is Barred Under Senate Bill 17
A 2025 amendment to Section 5.005 carved out an exception that reaches further than most people expect. Subchapter H, created by Senate Bill 17, prohibits individuals and entities tied to four designated countries from acquiring an interest in real property in Texas.2Texas Legislature. 89th Legislature SB 17 – Enrolled Version The designated countries are China, Iran, North Korea, and Russia. The ban is not limited to governments. It covers:
- Citizens of a designated country, people domiciled there, and members of a ruling political party of that country.
- Any governmental body of a designated country.
- Companies and organizations headquartered in, controlled by, or majority-owned by individuals or governments of a designated country.
The restriction applies broadly to farmland, residential property, and commercial property. One narrow exception exists: an individual who is lawfully present and residing in the United States may buy a single residential property to use as a homestead.2Texas Legislature. 89th Legislature SB 17 – Enrolled Version A Chinese citizen on a work or student visa living in Texas can buy one home to live in, but not investment properties or additional real estate.
Violations carry real teeth. A court can order divestiture through a receiver sale, with proceeds applied first to existing liens, then to the state’s enforcement costs, with any remainder returned to the buyer. An individual who intentionally buys in violation of the law commits a state jail felony punishable by up to two years in a state jail facility and a fine of up to $10,000. Entities face a civil penalty equal to the greater of $250,000 or 50 percent of the property’s market value.2Texas Legislature. 89th Legislature SB 17 – Enrolled Version
Federal Scrutiny Near Military Bases
Even buyers from countries not on the Texas restricted list can run into federal review if the property sits near a military installation. The Committee on Foreign Investment in the United States (CFIUS) has jurisdiction over real estate transactions near listed installations. The geographic trigger varies by site, ranging from one mile to 100 miles from the installation boundary depending on the sensitivity of the location.3Federal Register. Definition of Military Installation and the List of Military Installations in the Regulations Texas hosts dozens of major military facilities, so this comes up more often than buyers expect.
Parties to a covered transaction can file a voluntary declaration or formal notice through the CFIUS Case Management System. CFIUS has 30 days to assess a declaration and 45 days to review a notice.4U.S. Department of the Treasury. CFIUS Real Estate Instructions Part 802 Not every purchase near a base triggers a filing, but a deal that should have been reviewed and was not can be unwound. Any purchase within 100 miles of a military installation deserves a review by a real estate attorney familiar with CFIUS.
Identification and Taxpayer Numbers
Every foreign buyer needs two things before a Texas title company will close: proof of identity and a U.S. taxpayer identification number.
A valid foreign passport is the standard form of identification. Title companies and county clerks require the buyer’s name to match the passport exactly, down to spelling and the order of names. Small discrepancies can delay recording or create title defects that surface years later. A visa is not required to own property, but you need one to travel to Texas for inspections or closing.
Buyers without a Social Security Number must obtain an Individual Taxpayer Identification Number (ITIN) by filing IRS Form W-7.5Internal Revenue Service. About Form W-7, Application for IRS Individual Taxpayer Identification Number The ITIN is a nine-digit number issued for federal tax purposes to people who need a taxpayer ID but are not eligible for an SSN. The application requires a certified copy of your passport or other identification.6Internal Revenue Service. Form W-7 (Rev. December 2024) Application for IRS Individual Taxpayer Identification Number Processing takes several weeks, so apply well before closing.
Financing and Moving the Money
Most foreign buyers pay cash, but financing is possible. Either way, open a U.S. bank account first. Title companies require funds to arrive in a domestic escrow account, and international wires into a U.S. account trigger compliance checks that can take days.
Sellers and title companies will ask for proof of funds, typically a recent bank statement or a letter from a financial institution confirming you have the liquid capital to complete the purchase. Errors in wiring instructions are one of the most common causes of delayed closings and are a frequent vector for wire fraud. Verify wiring instructions by phone with the title company rather than relying on email.
Some lenders offer mortgage products to foreign nationals using an ITIN. These loans tend to carry higher interest rates and larger down payment requirements than conventional mortgages. Expect requests for two years of tax returns filed with the ITIN, proof of income, and a down payment of 25 percent or more. Terms vary significantly between lenders, so shop around.
Reporting Required for Farmland and Ranchland
Foreign buyers who acquire farmland, ranchland, or timberland face a separate federal reporting obligation under the Agricultural Foreign Investment Disclosure Act (AFIDA). Any foreign person who acquires or transfers an interest in agricultural land must file Form FSA-153 with the local Farm Service Agency county office within 90 days of the transaction.7Office of the Law Revision Counsel. 7 USC 3501 – Reporting Requirements
Agricultural land under AFIDA includes land used for farming, ranching, or timber production, and land put to those uses within the past five years, even if currently idle. A narrow exception covers land of ten acres or less where annual gross receipts from agricultural products do not exceed $1,000.8eCFR. 7 CFR Part 781 – Disclosure of Foreign Investment in Agricultural Land Texas has an enormous amount of agricultural land, and this requirement catches more transactions than buyers anticipate.
Missing the 90-day deadline or filing an inaccurate report can trigger a civil penalty of up to 25 percent of the property’s fair market value.9U.S. Department of Agriculture. Instructions for Completing Form FSA-153 On a $2 million ranch, that is a $500,000 penalty for a form that takes an afternoon to complete.
FIRPTA Withholding When You Sell
The Foreign Investment in Real Property Tax Act (FIRPTA) does not block a purchase, but it directly affects what happens when you sell. The buyer of U.S. real property from a foreign seller must withhold 15 percent of the total sale price and remit it to the IRS using Form 8288.10Internal Revenue Service. FIRPTA Withholding This is not an additional tax; it is a prepayment of the seller’s income tax. If the actual tax owed is less than the amount withheld, the seller files a return to claim a refund.
An important exception: no withholding is required if the buyer plans to use the property as a personal residence and the sale price is $300,000 or less. The buyer must have genuine plans to occupy the property for at least 50 percent of the days it is used during each of the first two years after purchase.11Internal Revenue Service. Exceptions from FIRPTA Withholding The IRS can also issue a withholding certificate reducing or eliminating the required amount in other situations.
Expect the title company to hold back 15 percent of the sale price at closing unless an exception applies. Plan for that cash flow effect and work with a tax professional on any refund claim.
Property Taxes and the Homestead Exemption
Texas has no state income tax, but property taxes are comparatively high. Effective rates across Texas counties generally run from roughly 0.4 percent to over 2 percent of assessed value, depending on the county and the taxing districts that overlay the property. A home assessed at $400,000 could carry an annual property tax bill anywhere from $1,600 to over $8,000.
Foreign nationals who live in their Texas property as a primary residence can qualify for the general residence homestead exemption, which reduces the taxable value of the home. The property must be the owner’s principal residence.12Texas Comptroller of Public Accounts. Property Tax Exemptions Citizenship is not an eligibility factor; residency is. The exemption application is filed with the local appraisal district.
Federal Estate Tax: The Overlooked Risk
This is the trap foreign buyers most often miss. A U.S. citizen or permanent resident who dies in 2026 can pass up to $15,000,000 in assets before federal estate tax applies.13Internal Revenue Service. What’s New – Estate and Gift Tax A non-resident alien gets a unified credit of just $13,000, which effectively shelters only about $60,000 in U.S.-situated assets.14Office of the Law Revision Counsel. 26 USC 2102 – Credits Against Tax Everything above that threshold is taxed at rates up to 40 percent. If a non-resident alien owns a $500,000 Texas home and dies, the estate could owe roughly $176,000 in federal estate tax.
An estate tax return, Form 706-NA, must be filed if the fair market value of U.S.-situated assets exceeds $60,000 at the time of death.15Internal Revenue Service. Some Nonresidents With U.S. Assets Must File Estate Tax Returns Citizens of countries with a U.S. estate tax treaty may receive a proportional share of the higher exemption. Treaty countries include Australia, the United Kingdom, Germany, France, and Japan, among others. Citizens of countries without such a treaty, including most of Latin America and much of Asia, get only the $60,000 threshold.
Many foreign investors manage this exposure by holding the property through an entity structure rather than in their individual name. That planning needs to happen before the purchase and requires a tax advisor fluent in both U.S. and international tax law.
Closing from Abroad
A Texas closing involves signing the warranty deed, settlement statement, and various disclosure forms. If you cannot travel to Texas, you have two reliable options. Texas law permits remote online notarization, where a licensed notary verifies the signer’s identity and witnesses the signing over a secure video connection; the signer does not need to be physically in Texas.16State of Texas. Texas Government Code Section 406.110 – Online Notarization Procedures Generally You can also sign documents with a wet-ink signature at a U.S. embassy or consulate.
After signing, the title company sends the deed to the county clerk for recording. Filing fees vary by county. Once recorded, the deed becomes a public record establishing your title and protecting against competing claims.
Texas regulates title insurance premiums at the state level. The Commissioner of Insurance sets rates that all title companies and agents must use, so there is no price shopping on the basic premium.17Texas Department of Insurance. Official Order – Title Insurance Basic Premium Rates Hearing No. 2025-9697 Premiums scale with the property’s value. Title insurance is a one-time cost paid at closing and will appear as a standard line item on your settlement statement.