Understanding foreigner real estate law is essential for anyone looking to invest in property outside their home country. Whether you’re a Korean citizen buying property in the U.S., or a U.S. citizen purchasing real estate in Korea, cross-border ownership is possible, but not without legal complexity. Pureum Law Office (PLO) is here to explain and help non-citizens with their overseas property purchases.
From ownership restrictions to tax reporting, this article explains how real estate laws apply to foreigners, expats, and non-citizens in key jurisdictions of South Korea and the United States.
Can Foreigners Own Property in the Republic of Korea?
Yes, under the Foreigner’s Land Acquisition Act and Registration of Real Estate Act, foreigners can purchase real estate in South Korea. However, there are steps and limitations:
- Foreigners must report land acquisition to the local government office within 60 days of signing a contract. If a foreign national fails to report the acquisition of real estate in Korea, it may become impossible to remit the proceeds abroad when the property is later sold. In such cases, a violation report and post-acquisition filing must be submitted, and the Financial Supervisory Service (FSS) may impose an administrative fine.
- Property near military installations or cultural heritage zones may require additional clearance.
- Title registration must be completed in Korean and filed correctly with legal identifiers.
If you are a U.S. citizen or other foreign national, a real estate lawyer who legally practices in Korea can help ensure all procedures are handled lawfully.
How About Foreigners Buying U.S. Real Estate?
There are no citizenship requirements to purchase property in the U.S, but there are aspects under the law that govern and restrict real estate purchases by non-citizens, specifically regarding:
- Financing: Non-U.S. citizens may face stricter mortgage terms or need to provide higher down payments.
- Taxation: Foreign investors are subject to the Foreign Investment in Real Property Tax Act (FIRPTA).
- Estate Tax: Upon death, non-resident aliens may be subject to steep U.S. estate taxes.
Hiring a real estate attorney familiar with related U.S. real estate laws is vital, especially when dealing with FIRPTA or IRS Form 8288 for withholding.
Common Legal Pitfalls in Foreigner Real Estate Law
Not Reporting Transactions Properly
Failing to register or disclose a transaction can lead to fines, delays, or even a void sale.
Misunderstanding Local Zoning Laws
Just because property is for sale doesn’t mean it’s legally usable for your purpose. Foreign buyers must consult with local land-use attorneys.
Incorrect Visa Assumptions
Buying property does not guarantee a visa or residency, which is one of the most misunderstood aspects of real estate law in regard to foreigners buying property in the USA.
Let Us Help
Navigating foreigner real estate law requires more than enthusiasm, it demands precision, documentation, and experienced legal guidance. PLO helps clients purchase and protect overseas properties with confidence.
Get in touch today.
