International Buyer's Guide to San Diego Real Estate
Your comprehensive guide to purchasing property in San Diego as a foreign national.
San Diego welcomes international buyers from around the world, and foreign nationals can absolutely purchase real estate in the United States. In fact, international buyers represent a significant portion of luxury home purchases in our coastal communities.
Whether you're looking for a vacation home, investment property, or planning to relocate, this guide covers everything you need to know—from visa considerations and financing options to tax implications and the unique aspects of the American real estate transaction process.
The Home Buying Process
Assemble Your Professional Team
Connect with a real estate agent experienced in international transactions, a mortgage broker specializing in foreign national loans, and a CPA familiar with cross-border tax implications.
Prepare Your Documentation
Gather passport, visa documents, proof of funds, foreign credit references, bank statements (typically 2-3 months), and any relevant tax documents from your home country.
Secure Financing or Proof of Funds
Get pre-approved for a foreign national loan or prepare documentation showing funds available for a cash purchase. Allow extra time for international wire transfers.
Search for Properties
Work with your agent to identify properties meeting your criteria. Virtual tours and video walkthroughs can help if you're searching remotely.
Make an Offer & Open Escrow
Submit your offer with proof of funds or pre-approval. Once accepted, you'll open escrow and deposit earnest money (typically 1-3% of purchase price).
Complete Due Diligence
Conduct home inspection, review disclosures, and finalize your ownership structure with your attorney. This typically takes 17-21 days.
Transfer Funds & Close
Wire funds to the escrow company, sign closing documents (can often be done via notary at a US consulate), and receive your keys!
Why International Buyers Choose San Diego
San Diego offers year-round sunshine, world-class beaches, excellent schools, and a thriving economy. Our proximity to the Mexican border and major Pacific Rim trade routes makes us a natural choice for international investors.
Visa Considerations
You do not need a visa to purchase property in the United States. Foreign nationals can buy, own, and sell real estate regardless of immigration status. However, your visa status may affect financing options, tax obligations, and time spent in the property.
B-1/B-2 Tourist Visa
Stay up to 6 months, can own property but cannot work or manage it as a business.
E-2 Investor Visa
For substantial investment in a US business, often used with real estate ventures.
EB-5 Immigrant Investor
$800K–$1.05M investment creating 10+ jobs can lead to green card.
Trump Gold Card Program
Gold Card (Individual)
$1 Million Contribution
Expedited pathway to permanent residency via EB-1 or EB-2 visa. Requires $1M contribution to U.S. Treasury plus $15,000 processing fee. Must already qualify under existing visa categories (EB-1A or EB-2 NIW).
- Green card status
- Path to citizenship
- Family can be included
- Expedited processing
Platinum Card (Proposed)
$5 Million Contribution
Proposed program pending congressional approval. Would allow up to 270 days annually in the U.S. without triggering U.S. taxes on non-U.S. income. Currently accepting waitlist applications.
- 270 days/year in U.S.
- Tax advantages
- Pending approval
- Join waitlist now
Note: Gold Card applicants must already qualify under EB-1A (extraordinary ability) or EB-2 NIW categories. The contribution is non-refundable and not an investment. Program subject to policy changes. Consult an immigration attorney for eligibility and current details.
Financing Options
While many international buyers purchase with cash, financing is available. Foreign national loans typically require 25-30% down payment with interest rates 1-2% above market. DSCR loans based on rental income are another popular option.
Foreign National Loan
25-30% down
Passport and bank statements required. Credit history from home country may be considered.
DSCR Loan
20-25% down
Based on property's rental income potential. Great for investment properties.
Cash Purchase
Fastest closing
Requires proof of funds documentation. Most straightforward option.
Tax Implications
Understanding US tax obligations is crucial for international property owners.
Property Tax
California property tax is approximately 1.1-1.25% of assessed value annually. Prop 13 limits increases to 2%/year.
Rental Income
Must file a US tax return. Effective rate on net rental income is typically 10-37% based on income level.
Capital Gains
Foreign owners pay 15-20% capital gains tax when selling. FIRPTA withholds 15% at closing.
Estate Tax
Foreign owners have only a $60,000 exemption (vs. $12.9M for US citizens). Structure ownership carefully.
Currency Exchange & Wire Transfers
Moving money internationally requires careful planning. Currency fluctuations can significantly impact your purchase price, and US banks require extensive documentation for large transfers.
- Consider locking in exchange rates in advance to protect against currency fluctuations
- Services like Wise or OFX often offer better rates than traditional banks
- Allow extra time for documentation and compliance requirements (typically 2-3 weeks)
- Most escrow companies can receive international wires directly
Title Insurance & Ownership Structure
Title insurance is unique to the United States and protects your ownership rights. Foreign buyers should also carefully consider their ownership structure.
Ownership Options
- Individual — Simplest, but higher estate tax exposure
- LLC — Privacy and liability protection
- Foreign Corporation — Complex but potential tax benefits
- Trust — Estate planning advantages
Title Insurance Protects Against
- Undisclosed liens on the property
- Forgery or fraud in the chain of title
- Errors in public records
- Claims from unknown heirs
Your Professional Team
Successful international transactions require a coordinated team of professionals who understand cross-border complexities.
Real Estate Agent
Experience with international clients and timeline constraints
Mortgage Broker
Specializing in foreign national loans
Real Estate Attorney
International transaction and ownership expertise
CPA/Tax Advisor
Cross-border tax expertise and treaty knowledge
Popular Neighborhoods for International Buyers
San Diego offers diverse neighborhoods appealing to different international buyer preferences.
La Jolla
$2M – $20M+
Oceanfront luxury, world-class dining, prestigious schools.
Coronado
$1.5M – $10M+
Island living, iconic beaches, strong community.
Del Mar
$1.8M – $15M+
Equestrian culture, excellent schools, village atmosphere.
Frequently Asked Questions
Do I need a US visa to buy property in San Diego?
No. Foreign nationals can purchase, own, and sell real estate in the United States regardless of visa status. However, your visa type affects how long you can stay in the property and your tax treatment.
Can I get a mortgage as a foreign buyer?
Yes. Several lenders offer foreign national loans, typically requiring 25-30% down payment, higher interest rates (1-2% above market), and documentation including passport, foreign credit references, and bank statements.
What is FIRPTA and how does it affect me?
FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers to withhold 15% of the gross sale price when purchasing from a foreign seller. This is applied against your actual tax liability. If you overpay, you can claim a refund when filing your US tax return.
Do I need a US bank account?
While not legally required, having a US bank account makes property ownership much easier for paying property taxes, HOA fees, utilities, and receiving rental income. Many banks will open accounts for foreign nationals with proper documentation.
How do I pay property taxes from overseas?
Property tax bills are sent annually (in two installments). You can pay online through the San Diego County Tax Collector website, set up automatic payments from a US bank account, or work with a property manager who handles payments on your behalf.
Can I rent out my property when I'm not using it?
Yes, but you'll need to file a US tax return reporting rental income. Consider hiring a property management company (typically 8-10% of rent) to handle tenant placement, maintenance, and rent collection.
What ownership structure should I use?
This depends on your goals. Individual ownership is simplest but offers no liability protection. An LLC provides privacy and liability protection. Consult with a US tax attorney, as the wrong structure can result in significant tax consequences.
Can I buy property remotely without visiting San Diego?
Yes. With virtual tours, video walkthroughs, and remote closing options (signing at a US consulate or through remote online notarization where permitted), it's possible to complete a purchase without being physically present in San Diego.
Ready to Invest in San Diego Real Estate?
Our multilingual team specializes in helping international buyers navigate the US real estate process. We speak your language—literally and figuratively.