Real Estate Reciprocity Act

House Votes

This proposal would require all U.S. real estate purchases by non‑citizens to be reported to the IRS. It would also add a new tax: if certain foreign buyers from countries named in a U.S. government report purchase property in the United States, they would owe a tax equal to 50% of the purchase price. The bill calls these buyers “disqualified persons,” which can include citizens of those named countries (not including U.S. citizens or green card holders), companies based in those countries, those foreign governments, and companies they significantly control. People living in the U.S. for diplomatic reasons or due to a grant of asylum would not be taxed under this rule. Certain U.S.-traded public companies are generally excluded if they are not controlled by these foreign persons. If a company is only partly controlled by such foreign persons, the tax can be reduced and applied proportionally.

Key points

• Who is affected: Non‑citizen buyers must report purchases. A 50% tax would apply to property purchases by people, companies, and governments from countries named in a federal report; U.S. citizens and green card holders are not taxed under this rule. Diplomats and asylees are exempt. Certain U.S.-traded public companies are generally excluded .
• What changes: New IRS reporting for non‑citizen purchases, plus a 50% tax on covered foreign buyers; the tax may be lower if foreign control of a buying company is limited .
• When: The text shown does not state a start date; it describes what would happen if enacted.