Real Estate Reciprocity Act: New Tax on Foreign Buyers
A house committee must act next: committee consideration.
This bill proposes a very high tax that would likely be opposed by the real estate industry and has not yet gained broad support.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
People who are citizens of a country that bans Americans from owning property there would pay a new 50 percent tax on any U.S. real estate they buy, unless they hold a green card or are here on asylum or diplomatic status. Non-citizens in general also lose an existing reporting threshold, meaning more foreign buyers who are not in a U.S. trade or business must file paperwork with the IRS regardless of purchase size.
“there is hereby imposed on such person a tax equal to 50 percent of the amount paid for such interest”
Referred to the Committee on Ways and Means, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Rep. Pat Harrigan (R-N.C.) has introduced legislation to curb foreign ownership of U.S. land. The Real Estate Reciprocity Act would slap a 50% tax on buyers from countries that do not allow U.S. citizens to purchase property, targeting nations like China and Iran.
House Republicans are pushing a new measure to tax foreign real estate investments. The Real Estate Reciprocity Act would require the State Department to list countries banning American land ownership and apply a 50% surcharge to their citizens' U.S. purchases.
The Real Estate Reciprocity Act would impose a 50% tax on property purchases by individuals from countries that restrict U.S. land ownership. Proponents argue it ensures fair treatment, while critics worry about the impact on the luxury real estate market and international investment flows.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Real Estate Reciprocity Act
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