International Buyer's Guide to Los Angeles Real Estate

Los Angeles: A Global Real Estate Market

Los Angeles ranks consistently among the top five global cities for international real estate investment. Buyers from China, Canada, the United Kingdom, Australia, South Korea, and across Latin America are active participants in LA's luxury residential market. This guide addresses the specific considerations that distinguish international purchases from domestic transactions.

Legal Structure and Entity Considerations

International buyers often benefit from purchasing through a US legal entity (LLC or corporation) rather than in their personal name. This provides potential liability protection and can offer estate planning benefits for non-US citizens. Consult with both a US real estate attorney and a tax advisor before structuring your purchase.

FIRPTA (Foreign Investment in Real Property Tax Act)

FIRPTA is the federal withholding requirement that affects international sellers (not buyers) of US real property. As a buyer purchasing from a foreign seller, you are responsible for withholding 15% of the purchase price and remitting it to the IRS — your escrow company will handle this mechanics. This applies when purchasing from a non-US citizen/resident.

Financing for International Buyers

Obtaining US financing without a Social Security Number, US credit history, or established US income is challenging but not impossible. Some specialty lenders offer "foreign national" loan programs with down payments of 30-40% based on international income documentation and assets. Cash purchases are significantly simpler and more competitive.

Currency Considerations

Large international wire transfers are subject to both sending country and US banking scrutiny. Plan for a 3-7 business day processing window for international wires. Currency exchange timing can meaningfully affect your effective purchase price — buyers with foreign currency exposure should work with a FX specialist to optimize conversion timing.

Working with the Right Agent

International buyers benefit greatly from working with an agent who has specific experience with cross-border transactions. The right agent will coordinate with international legal counsel, escrow, lender, and title to ensure the process moves smoothly across time zones and regulatory environments.