Key Takeaways
- Non-citizens can purchase commercial real estate in virtually all US states without citizenship
- No federal law restricts non-citizen commercial property ownership, though some states have restricted foreign-owned agricultural land
- Commercial mortgages for non-citizens typically require 25–35% down payment and strong business documentation
- FIRPTA (Foreign Investment in Real Property Tax Act) applies specific tax withholding rules to non-citizen property transactions
- Bankable Funds provides working capital and equipment financing for businesses in non-citizen-owned commercial spaces
Non-citizens can buy commercial real estate in the United States. The US does not have a federal law that prohibits non-citizens from owning commercial property. However, financing commercial real estate as a non-citizen is significantly more challenging than as a citizen — most commercial mortgage lenders have strict requirements around immigration status, credit history, and US income documentation.
The Federal and State Legal Framework
Commercial real estate ownership in the US is generally governed by state property law, not federal immigration law. Most states have no citizenship requirement for commercial property ownership. However, some states have recently enacted restrictions specifically on foreign nationals owning agricultural land or properties near military installations — these generally do not apply to commercial urban/suburban real estate.
Financing Commercial Real Estate as a Non-Citizen
| Lender Type | Non-Citizen Friendly? | Typical Requirements | Typical Rates |
|---|---|---|---|
| Portfolio Lenders (Community Banks) | Often yes | 25–30% down, strong business history | 7–10% (2026 rates) |
| Foreign National Lenders | Specifically designed for non-citizens | 30–35% down, international credit | 8–12% |
| SBA 504 (Commercial RE) | Excluded (March 2026) | Citizenship required | N/A for non-citizens |
| Traditional Banks | Very limited | Green card or citizenship usually required | 7–9% |
| Private/Hard Money Lenders | Often yes | Asset-based (property value) | 9–14% |
FIRPTA: The Tax Rule Non-Citizens Must Know
The Foreign Investment in Real Property Tax Act (FIRPTA) requires that buyers withhold 15% of the gross sales price when purchasing US real property from a foreign person. This withholding is applied at the time of sale and credited against the seller's eventual tax liability. As a non-citizen buyer, FIRPTA affects you when you eventually sell the property — buyers will withhold from your sale proceeds. This is a tax planning consideration, not a barrier to ownership.
Using Business Funding in Your Commercial Space
Once you own a commercial property, your business operating from that property is eligible for Bankable Funds' revenue-based funding. Business capital for equipment, inventory, and working capital is available regardless of your commercial real estate ownership structure. The property ownership actually strengthens your business profile for private funding.
Frequently Asked Questions
As of 2026, several states have enacted restrictions on foreign national ownership of agricultural land and land near military installations. Florida, Texas, and several other states have agricultural land restrictions. These typically do not apply to urban or suburban commercial real estate used for business operations. Verify with a local real estate attorney.
Yes — in fact, owning commercial real estate through an LLC is recommended for non-citizens. The LLC provides liability protection and may simplify the ownership structure for immigration purposes. Foreign nationals often use Delaware LLCs for US real estate holdings.
Most commercial lenders require non-citizens to put 25–35% down, compared to 10–20% for citizen buyers. This higher down payment requirement compensates for the lender's increased risk with non-citizen borrowers who may not have US-based credit history.
Owning significant commercial real estate may support certain immigration petitions (particularly EB-5 if the investment creates jobs). However, commercial RE ownership is not directly a basis for visa or green card applications beyond the EB-5 investor visa. Consult an immigration attorney.
Yes. Non-citizen landlords typically face US tax withholding on rental income. The withholding rate is generally 30% of gross rental income unless reduced by tax treaty. Non-citizens can elect to be taxed on net income (after expenses) at regular rates instead, which is often more favorable. A US tax professional with international experience should advise.
A foreign national mortgage is a commercial or residential loan specifically designed for non-citizens without US credit history. These lenders evaluate international credit reports, home country assets, and US income documentation. Down payments are typically 30–40%. Several specialized foreign national mortgage lenders operate in major US markets.
DACA recipients can legally purchase commercial real estate as US residents with work authorization. The ownership itself is unrestricted by federal law. DACA status creates complications for financing (most commercial mortgage lenders want more stable immigration status) but the ownership right exists.
Owned commercial real estate strengthens a business loan application by demonstrating stability, providing potential collateral, and showing long-term commitment to the US market. Non-citizen business owners who own their commercial space are often viewed more favorably by private lenders than those who rent, all else being equal.