Navigating the Horizon Maui Residents Can Buy Property As A Foreigner Requirements Breaking Down The Law
can foreigners buy property in maui
Table of Contents
Quick Facts
Buying Process
Frequently Asked Questions
Resources & Links
Quick Facts
- Foreigners can buy property in Maui, Hawaii, with no restrictions on ownership.
- Non-resident foreigners do not need a visa to purchase property in Maui.
- Property purchases by foreigners are subject to the same taxes and fees as those by US citizens.
- Foreign buyers can finance their property purchase through a US lender or use cash.
- There are no specific laws prohibiting foreigners from inheriting property in Maui.
- Foreigners who purchase property in Maui may be eligible for a US tax ID number.
- Property ownership in Maui does not grant foreigners automatic US residency or citizenship.
- Foreign buyers should research and comply with all applicable US tax laws and regulations.
- Maui properties can be purchased through a limited liability company (LLC) or trust for tax and liability purposes.
- Foreign buyers should consult with a qualified real estate attorney and tax professional to navigate the purchasing process.
Can Foreigners Buy Property in Maui
A Comprehensive Guide to Buying Hawaiian Real Estate
Are you considering investing in Maui real estate? As a foreign buyer, you’re likely wondering if it’s possible to purchase a property in paradise. The answer is yes, but with certain restrictions and requirements. In this article, we’ll dive into the details of buying property in Maui as a foreigner.
Eligibility Requirements
Not all foreigners are eligible to buy property in Hawaii. To qualify, you’ll need to meet the following requirements:
- You’re a non-resident alien, which includes individuals who don’t intend to reside in Hawaii for more than 183 days per year.
- You’re purchasing a property that’s not used for rental income purposes.
- You’re not purchasing a property that’s within 500 feet of a shoreline, if you are purchasing you’ll need to go through the more complex, Hawaii state ” Leeward shorelines” and “Windward shores” procedures.
- You’re purchasing a property that’s zoned for residential use.
Financing Options
Financing as a foreign buyer can be challenging, but there are options available. Here are a few:
- Cash buyers: If you’re paying cash, you can avoid the complexities of financing as a foreign buyer.
- USD-based loans: Some lenders offer loans in US dollars, which can be beneficial for foreign buyers.
- Non-resident Alien loans: Some lenders specialize in providing loans to non-resident aliens.
- International mortgage brokers: A mortgage broker with international connections can help you find a lender that meets your needs.
| Factor | Description |
|---|---|
| Loan amount | Yes |
| Interest rate | Yes |
| Loan term | Yes |
| Loan type | Yes |
| Credit report | Yes |
| Appraisal | No |
| Foreign buyer | Yes |
| Mortgage broker | Yes |
Taxes and Fees
As a foreign buyer, you’ll need to consider additional taxes and fees. Here are a few:
- Transfer tax: A 0.55% to 0.60% transfer tax on the purchase price.
- Recording fee: A $15 to $30 fee for recording the deed.
- Annual property tax: A 0.33% to 0.50% annual property tax on the purchase price.
- Foreign national tax: A 4.15% to 14.43% foreign national tax on the purchase price.
| Tax/Fee | Rate |
|---|---|
| Transfer | 0.55% |
| Recording | $15-$30 |
| Annual property | 0.33%-0.50% |
| Foreign national | 4.15%-14.43% |
Buying Process
The buying process for foreigners in Maui is similar to that of locals. Here’s an outline:
- Find a realtor: Work with a licensed real estate agent to find a property that meets your needs.
- Make an offer: Submit an offer on the property, including your proposed price and contingencies.
- Inspections and appraisals: Conduct inspections and appraisals to determine the property’s value.
- Loan application: Apply for a loan, if needed.
- Close escrow: Complete the transaction and transfer ownership of the property.
Here are some popular neighborhoods in Maui for foreign buyers to consider:
- Wailea: An upscale area with luxury homes and stunning ocean views.
- Lahaina: A historic town with a mix of residential and commercial properties.
- Maalaea: A coastal town with a variety of housing options and plenty of amenities.
Frequently Asked Questions:
- Can foreigners buy property in Maui? Yes, foreigners can buy property in Maui, however, there are certain requirements and restrictions they must follow.
- What are the steps for a foreigner to buy property in Maui? The steps for a foreigner to buy property in Maui are similar to those for US residents.
- Do foreigners need a visa to buy property in Maui? No, a foreigner does not need a visa to buy property in Maui.
- Can foreigners rent out their property in Maui? Yes, foreigners can rent out their property in Maui.
- How do foreigners pay taxes on their Maui property? Foreigners who own property in Maui are subject to US taxation on their rental income and capital gains.
- Can foreigners sell their property in Maui? Yes, foreigners can sell their property in Maui.
Resources & Links
https://www.realtors.mw/index.php?520-buy-foreign-ownership-of-real-property-in-malawi
https://www.investmalawi.org/investment-opportunities/real-estate/
https://www.mbsr.gov.mw/index.php/foreign-ownership-of-immovable-property
https://www.sanctionssurvy.co.tz/foreign-property-ownership-malawi/
https://www.worldbank.org/en/news/press-release/2016/06/07/malawi-amends-constitution-to-allow-foreigners-to-buy-properties
