Yes, you can buy from outside the US
Foreign individuals and foreign-owned companies buy homes and rental property in Massachusetts. The federal tax rules on this page, such as the ITIN, Form 1040-NR and FIRPTA, exist exactly for owners who live outside the US. What takes planning is the money, the paperwork and the closing.
Here is how Suad works with buyers who live abroad:
- Search: he sends listings that match your budget and goal, whether that is a condo for family visits or a 2- or 3-family for rental income.
- Showings by video: live video walk-throughs, so you see the street, the condition and the details a listing photo hides.
- Offers: he prepares and negotiates the offer with you by phone, video and e-signature.
- Inspections: he schedules the home inspector and walks you through the findings.
- Closing team: he coordinates with your Massachusetts attorney, lender, insurance agent and tax professional.
For the full process, see our guide on the steps to buying a home.
ITIN and taxes on rental income
If you need a US tax number but are not eligible for a Social Security number, the IRS issues an ITIN (Individual Taxpayer Identification Number). You apply with IRS Form W-7. In general, the application must include a US federal tax return unless you meet one of the exceptions in the W-7 instructions. The ITIN is for federal tax purposes only: it does not change immigration status or give the right to work.
Rent from a US property. For a nonresident alien, the IRS says rental income from US real property is taxed at 30% (or a lower treaty rate) if it is not effectively connected with a US trade or business. You can instead elect to treat the property income as effectively connected. Then you can claim deductions for the property, and the net income is taxed at graduated rates. The election is made by attaching a statement to Form 1040-NR, and you file Form 1040-NR for that year and each later year until the election is revoked.
A tax professional who works with nonresidents should set this up before your first rent check. See also our guide on buying a home with an ITIN.
FIRPTA: what happens when a foreign owner sells
When a foreign person sells US real property, the buyer is the withholding agent under FIRPTA. The IRS rules:
- General rate: the buyer must withhold 15% of the amount realized (usually the sales price).
- Residence, $300,000 or less: no withholding is required if one or more individuals buy the property for use as a residence and the amount realized is $300,000 or less.
- Residence, over $300,000 up to $1 million: withholding is at a reduced rate of 10%.
For the residence rules, the buyer must be an individual with definite plans to live in the property at least 50% of the days it is used during each of the first two 12-month periods after the sale.
Withholding is not the same as the final tax. Talk to your tax professional well before you list. If you plan to sell one investment property and buy another, read our guide on 1031 exchanges.
Financing when you live abroad
Many buyers from abroad pay cash. Others finance. Some lenders offer foreign national or non-QM (non-qualified mortgage) loans for borrowers without US credit history or US income. These loans usually ask for a bigger down payment and more documents than a standard home loan, and terms differ from lender to lender.
- Talk to a lender before you make an offer, and get a written pre-approval or proof of funds.
- Plan early for moving money to the US, because international transfers can take time.
- If you live in the US with lawful status, standard loans may be open to you. Ask your lender.
Our guide on investing in multi-family homes shows how to run the numbers on a rental.
Buying through an LLC
Some investors buy in the name of a limited liability company. In Massachusetts, LLCs file with the Corporations Division of the Secretary of the Commonwealth:
- Massachusetts LLC: formed by filing a certificate of organization, with a resident agent in Massachusetts, plus an annual report each year.
- LLC formed in another state or country: must submit an application for registration within ten days after it starts doing business in Massachusetts, with a certificate of good standing (or legal existence) from its home jurisdiction.
FinCEN beneficial ownership reporting. The rules changed in 2025 and again in 2026. FinCEN now says US companies are exempt from beneficial ownership information (BOI) reporting, and US persons do not need to provide BOI. A company formed under the law of a foreign country and registered to do business in a US state is still a reporting company, but it does not report US persons who are beneficial owners. FinCEN's final rule took effect August 14, 2026. Check fincen.gov/boi before you file.
An LLC is not required to buy. Whether it makes sense for you is a legal and tax question for your attorney and tax professional.
Closing from abroad
In Massachusetts, attorneys are a regular part of buying and selling real estate. The Supreme Judicial Court has said that closings require the substantive participation of an attorney on behalf of the mortgage lender. You can also hire your own buyer's attorney.
- Signing from abroad: US embassies and consulates provide notarial services like a notary public in the US, and appointments are available for people of all nationalities. In countries that belong to the Hague Convention, you can instead use a local notary and then have the document authenticated for use in the US. Ask your attorney exactly which form they need.
- Remote notarization: some states allow it, but may limit it to signers in that state. Check with your attorney first.
- Power of attorney: ask your attorney whether someone can sign for you, and how the document must be prepared.
Wire fraud warning. Scammers send fake emails with new wiring instructions. The CFPB advises: never follow instructions contained in an email, and verify the account name and number in person or by a phone number you agreed on earlier. See our guide on closing day.
General information only
This page is general information, not legal or tax advice — talk to a Massachusetts real estate attorney and a tax professional. Rules change, and treaties and personal situations differ.
Sources: IRS: Instructions for Form 8288 (Rev. January 2026), FIRPTA withholding · IRS: Instructions for Form W-7 (Rev. December 2024), ITIN application · IRS: Nonresident aliens – real property located in the U.S. · FinCEN: Beneficial Ownership Information Reporting · Mass. Secretary of the Commonwealth: Foreign Limited Liability Company · Mass.gov: Massachusetts law about real estate conveyancing · U.S. State Department: Notarial and Authentication Services at U.S. Embassies and Consulates · CFPB: Mortgage closing scams — how to protect your closing funds
