New bill would tax foreign buyers from countries that restrict U.S. property ownership, aiming to level the playing field.

Congressman Proposes Heavy Tax on Foreign Buyers from Restrictive Nations

Representative Pat Harrigan, R-N.C., has introduced the Real Estate Reciprocity Act, a new bill designed to prevent foreign nationals from purchasing American real estate when U.S. citizens are barred from doing the same abroad. The proposed legislation targets entities and individuals from countries with restrictions or outright bans on foreign land ownership.

The bill imposes a 50% tax on property purchases made by foreign nationals and foreign government-tied entities from those countries. It also mandates that all foreign purchasers file with the Internal Revenue Service (IRS) and that the U.S. Secretary of State submit an annual report detailing countries that prohibit American real estate ownership.

“While American families struggle to afford a home, foreign adversaries are buying up our country with cash – farmland, neighborhoods, even land near military bases,” Harrigan stated. “These regimes ban Americans from buying land on their soil, but think they can carve up ours. My Real Estate Reciprocity Act stops it cold.”

Several nations currently impose significant limitations on foreign land ownership. Countries like Switzerland, New Zealand, Denmark, the Philippines, Poland, and Vietnam maintain tight restrictions. Others, such as China and Saudi Arabia, allow foreign investment in real estate but prohibit direct land ownership.

Foreign buyers have increasingly been blamed for escalating property prices, particularly in major metropolitan markets like New York City, where high-end real estate is often used as a financial safe haven. Harrigan’s bill seeks to curtail such trends and restore fairness in property access.

Legislative Response to Foreign Encroachment

The bill emerges alongside growing concern about foreign acquisitions of U.S. farmland, especially near strategic locations such as military installations. Recent data from the U.S. Department of Agriculture reveals that as of last year, China owned approximately 350,000 acres of farmland across 27 states.

In total, foreign entities and individuals held 43.4 million acres of American agricultural land as of 2022—accounting for nearly 2% of all U.S. land. As of 2021, Canada topped the list of foreign landowners, holding 12.8 million acres—more than the combined landmass of New Hampshire and Vermont.

Harrigan’s proposed legislation aims not only to safeguard American real estate but also to address broader national security and economic fairness concerns. “If Americans can’t buy land in your country,” Harrigan emphasized, “you won’t be able to buy land in ours.”

The bill is expected to garner support from lawmakers concerned about foreign influence and economic sovereignty. If enacted, it would mark a significant shift in the U.S. approach to foreign investment in real estate, particularly in rural and sensitive areas.