Before you buy a home in Los Angeles, it’s worth knowing what happens when you sell. On an $8 million sale, a seller who qualifies as a foreign person for U.S. tax purposes could have $1.2 million withheld at closing under FIRPTA. That money counts toward the seller’s U.S. tax bill, and any excess can take time to recover.
I started my real estate career in Dubai, and today I help international clients buy homes across Beverly Hills, Bel Air and the Westside. When someone calls me from abroad, these are the seven things I want them to understand before we write an offer.
This is education, not legal or tax advice. Please talk to a US real estate attorney and a tax adviser before you make an offer.
1. Yes, you can buy
California doesn’t require citizenship to buy, own or sell a home. Green card holders, visa holders and people with no US status can all buy.
But owning a home doesn’t give you a visa or residency. Property and immigration are two separate things.
Before we write an offer, I help clients work through four questions:
- Whose name will be on the title?
- What documents will you need for the funds?
- Will you finance the purchase?
- What should you discuss with your tax adviser?
2. How you own it matters
There are three common ways to hold title: in your own name, in an LLC, or in a trust.
- Your own nameThe simplest option. But your name usually shows up in public records.
- An LLCCan separate you from liability if it’s set up and run properly. It doesn’t make you anonymous, and a California LLC pays at least $800 a year in tax.
- A trustHelps with estate planning. A revocable living trust doesn’t protect you from liability or remove tax.
Before choosing how to hold title, ask a cross-border tax adviser how U.S. estate tax could affect your family. For estate tax purposes, where you’re considered permanently based matters. Decide on your structure before you make an offer. Changing it after closing costs money.
3. FIRPTA: plan for the sale before you buy
FIRPTA applies when a seller who is a foreign person for U.S. tax purposes sells U.S. real estate. A foreign passport alone doesn’t decide this. The buyer withholds part of the price, often 15%, usually based on the full sale price, not the profit.
So before you buy, ask your tax adviser three things:
- Will I count as a foreign person when I sell?
- How much could be withheld?
- Could I apply for a withholding certificate to lower it, and how early should I start?
Withholding is a prepayment, not the final tax. You file a U.S. tax return, and if too much was withheld, you can get a refund. The problem is timing. An LLC or a trust doesn’t make FIRPTA go away.
4. Financing is possible
Many international buyers pay cash. But foreign national mortgages do exist, even with no Social Security number or US credit history.
Expect a bigger down payment, higher rates or fees, and more time for document checks and translation. An ITIN can open more loan options. If you’re buying a rental property, some lenders look primarily at whether the expected rent can cover the loan payments and other property costs. You may hear this called a DSCR loan. Before relying on rental income, check which rentals the city allows at that address.
Paying cash? You still need proof of funds, documents showing where the money came from, and time for international wires. My Buyer’s Guide walks through each step from offer to closing.
5. The mansion tax and city lines
The LA mansion tax, Measure ULA, is paid by the seller on homes inside the City of Los Angeles. On qualifying sales closing after June 30, 2026, the rate is 4% when the price is above $5.4 million and below $10.9 million. At $10.9 million or more, the rate is 5.5%. The City adjusts the price thresholds annually, so check which ones apply on your closing date.
Why should a buyer care? Because it changes what the seller walks away with. That can affect their price and how they answer your offer. For the full breakdown, read my guide to the LA mansion tax and Measure ULA.
City lines matter too. Beverly Hills is its own city, so Measure ULA does not apply there. But watch the address. A Beverly Hills mailing address can still be inside the City of Los Angeles. Bel Air, Holmby Hills, Brentwood and Pacific Palisades are inside the City of Los Angeles, so it can apply. Santa Monica has its own transfer tax, and at $8 million it jumps to 5.6% of the full price.
6. Check insurance before you fall in love
In hillside, canyon and coastal areas, ask one question first: can this exact house be insured for enough to rebuild it?
Two homes on the same street can get very different answers. If you’re financing, your lender needs insurance before closing. So get quotes during your contingency period. Earthquake coverage is usually separate, so ask for it.
7. How to find homes before they’re publicly listed
Some owners prefer private showings. If privacy matters to them, it helps when I can explain exactly what my buyer is looking for, their timing, and how they plan to buy.
To get access, be ready: clear criteria, proof of funds or a lender, a realistic timeline, and the ability to keep things private. Off-market doesn’t mean underpriced, so you still need inspections, title review and insurance. In the meantime, you can search homes for sale in Los Angeles to get a feel for prices.
Bonus: which neighborhood fits you?
The best neighborhood isn’t the most famous name. It’s the one that fits how you want to live.
- Beverly HillsThe strongest global name, its own city, no ULA.
- Bel AirPrivacy, big lots and views.
- Holmby HillsVery private estates, very few homes for sale.
- BrentwoodNeighborhood life, schools and easy Westside access.
- MalibuCoastal living, with its own rules on building, septic and insurance.
- Pacific PalisadesA rebuilding market after the 2025 fires. Get advice on the exact property, and see my latest Pacific Palisades market update.
Build your team first
A non-US citizen can buy in Los Angeles. But a good purchase takes more than a beautiful house. Before you make an offer, build your team:
- An agent who knows international deals
- A US real estate attorney
- A cross-border tax adviser
- A lender, if you’re financing
- An insurance broker
Over the next few weeks, I’ll go deeper into each of these seven topics, one at a time.
If you’re thinking about buying in Los Angeles from abroad, tell me what you have in mind. Whether you’re choosing a neighborhood or trying to understand what you’ll need before your first visit, I’d be happy to talk it through with you in English or Farsi.
Call or text me at 310.800.4969, or email asal@asalhomes.com.
Warmly,
Asal
