NEW YORK, NY – Foreign nationals can legally purchase real estate in Manhattan and throughout New York City, but the process involves unique legal, tax, and financial steps that differ significantly from domestic transactions. Manhattan real estate attorney Peter Zinkovetsky of Avenue Law Firm (https://www.avenuelawfirm.com/foreign-buyer-guide-nyc-real-estate/) has released guidance addressing what international buyers should understand before acquiring property in the five boroughs, including FIRPTA withholding, co-op board restrictions, financing limitations, and recurring ownership costs.
Under New York law, noncitizens may buy, hold, transfer, and sell real property in the same manner as citizens, subject to ordinary transaction requirements and applicable federal rules. Manhattan real estate attorney Peter Zinkovetsky notes that a visa, green card, or residency status is not required to purchase a condo, townhouse, or commercial property. “Owning real estate and holding immigration status are separate legal concepts under New York law,” Zinkovetsky explains. “A foreign national can take title to a Manhattan property without any U.S. visa, though the purchase itself does not confer residency rights.”
Condominiums remain the most accessible property type for international buyers, as they provide fee simple ownership through a deed and generally do not impose nationality-based restrictions. Manhattan real estate attorney Peter Zinkovetsky points out that co-ops, which make up a large share of the city’s residential inventory, present additional challenges because buyers purchase shares in a corporation rather than receiving a deed. Co-op boards have broad discretion to approve or reject applicants, and many require demonstrated U.S.-based income, domestic tax returns, and a commitment to using the unit as a primary residence.
Taxes are another central consideration for foreign purchasers. Zinkovetsky explains that the Foreign Investment in Real Property Tax Act, or FIRPTA, generally requires a buyer to withhold 15% of the gross sale price when a foreign person sells U.S. real property. “For most foreign buyers, FIRPTA becomes relevant at resale, but a buyer who purchases from a foreign seller may have withholding and reporting obligations at that closing,” he notes. He adds that the withholding functions as a prepayment toward the seller’s U.S. income tax liability and that a foreign seller may apply for a withholding certificate or file a return to claim a refund where the actual liability is lower.
Beyond foreign-status issues, standard transaction taxes apply to most NYC purchases. The New York City Real Property Transfer Tax is 1% for sales under $500,000 and 1.425% for sales of $500,000 or more, while New York State’s base transfer tax is 0.4%. For purchases exceeding $1 million, the mansion tax adds another 1% to 3.9% depending on the price. Zinkovetsky emphasizes that responsibility for these taxes depends on the specific contract terms, making careful review essential.
Financing options are more limited for international buyers, and many complete all-cash purchases as a result. Zinkovetsky observes that most U.S. banks will not issue a standard mortgage without a Social Security Number and domestic credit history, though specialized foreign national mortgage programs exist. These programs often require down payments in the 25% to 50% range, along with extensive documentation of overseas income, assets, and banking relationships. An all-cash offer, he notes, can make a transaction more attractive to sellers and eliminates the risk of financing denial.
Attorney Zinkovetsky also highlights the importance of special assessments, one-time charges levied by a condo or co-op board to cover major building expenses such as roof replacement, elevator modernization, or façade repairs required under Manhattan’s Local Law 11 inspection cycle. Such assessments can reach tens or even hundreds of thousands of dollars per unit. “Thorough due diligence is one of the most effective ways to identify current, pending, or anticipated assessments before signing a contract,” Zinkovetsky advises. He recommends reviewing board meeting minutes, offering plans, reserve fund balances, capital improvement plans, and any pending litigation involving the building.
The closing process typically takes 60 to 90 days from contract signing, though timelines may extend for foreign buyers due to additional documentation, international wire transfers, and potential board approval delays. Buyers who cannot be physically present may complete the transaction through a duly executed power of attorney, which generally must be notarized and authenticated when signed abroad, including apostille requirements for Hague Convention countries.
Zinkovetsky notes that ownership structure carries significant implications as well. While purchasing through a U.S.-based limited liability company may offer liability protection and estate planning benefits, most co-op boards will not sell to an entity, and New York’s LLC transparency laws require disclosure of beneficial owners. Individual ownership preserves full market access but may expose the property to federal estate tax, which for nonresident non-citizens generally applies above a $60,000 threshold in U.S.-situated assets.
For foreign nationals considering the purchase of property in New York City, consulting an experienced real estate attorney may help clarify tax obligations, financing options, and due diligence requirements before signing a contract.
About Avenue Law Firm:
Avenue Law Firm is a New York City real estate law practice representing local, out-of-state, and international clients in residential and commercial transactions across Manhattan, Brooklyn, Queens, The Bronx, and Staten Island. Led by founder and managing partner Peter Zinkovetsky, the firm focuses on contract negotiation, due diligence, title matters, FIRPTA compliance, and closing representation. The office is located at 505 Park Avenue, Suite 1201, in Manhattan. For consultations, call (212) 729-4090.
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Email: peter@avenuelawfirm.com
Website: https://avenuelawfirm.com/
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Contact Person: Peter Zinkovetsky
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Phone: (212) 729-4090
Address:505 Park Ave #1201
City: New York
State: New York 10022
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Website: https://avenuelawfirm.com/