ITIN for foreign property owners: when a lot owner needs one

As the IRS explains, it is for federal tax purposes only. It does not give you immigration status, authorize you to work in the US or qualify you for Social Security benefits. Think of it as your tax ID with the US tax authority.

If you are wondering whether buying land changes your immigration status, it does not: we cover it in whether buying property gives you residency.

The full process, from reservation to deed, is in how to buy land in the USA, and the documents you sign are in the purchase documentation. Buying through an LLC is handled separately and can have other requirements.

The table sums up each situation. As long as you only own the lot, without renting or selling it, you have no income tax return to file for it.

If you rent out US property, a nonresident's rental income is taxed at 30% of the gross amount unless you elect to be taxed on net income. That election means filing Form 1040-NR every year, and for that you need an ITIN.

This is the FIRPTA rule. The USD 300,000 exception you will see elsewhere only applies when the buyer will live in the property, so do not count on it. A reduced withholding can be requested with Form 8288-B.

For the IRS to credit what was withheld, you must file a US tax return with your identification number. If you have no ITIN, you can apply then by attaching Form W-7. We do not promise the lot will rise in value; if you sell, this is what to know beforehand.

With Form W-7, usually sent together with the tax return that requires it. You can apply by mail, through a certifying acceptance agent (some are outside the US) or at an IRS office.

Form W-7 asks for documents proving your identity and foreign status, usually your passport. According to the IRS, a response takes about 7 weeks, or 9 to 11 if you apply from abroad or during tax season. Applying at an IRS office is free; acceptance agents charge their own fee.

Because the ITIN is requested when there is a return to file, the usual path is to get it with a US accountant when you rent or sell, not when you buy.

Property tax on a lot like ours is low: about USD 20 a year (to be confirmed with a recent Fulton County bill). While you pay the instalments, the seller pays that tax until the lot is deeded to you; see what's included in the price.

On top of that, the Cherokee Village improvement district (CVSID) charges a yearly fee per lot, collected with the property tax, that maintains the lakes, roads and common areas. The amount is to be confirmed. Golf is paid separately, only if you use it.

The table shows where to look in each country. It does not replace your accountant: rules change and depend on your situation.

Our country guides go into more detail: buying from Chile and buying from Argentina (in Spanish), and the guide for Brazil (in Portuguese).

Ask your accountant how to declare the lot at home, keep your purchase documents and think about who would inherit it: see estate tax and inheritance for US land. If you might rent or sell one day, plan on needing an ITIN and a US accountant. To start, browse the land for sale and the payment plans, or bring your questions to a video call with the team.