Aloha everyone, Jason Wong here, Principal Broker and founder of Island Dragonfly. Whether you are sipping a Mai Tai on the beach or researching international investments from overseas, I frequently get asked one major question: Can foreigners buy property in Hawaii?
The short answer is absolutely yes—the United States is very welcoming to global real estate investments. However, before you start picking out curtains for your beachfront villa, we need to have some “Real Talk.” The purchasing process has several expensive landmines if you don’t have a proper strategy in place. With over 22 years of experience focusing on luxury residential and commercial properties, I believe in a discreet, client-first approach to protect your assets.
First, understand the land you are buying. In Hawaii, we have Fee Simple (absolute ownership) and Leasehold (where you own the house, but someone else owns the dirt beneath it). You generally want to stick to Fee Simple to avoid unexpected lease expirations. There are also specific restrictions, like Hawaiian Home Lands, which are reserved exclusively for those with native Hawaiian ancestry.
Taxes are another massive hurdle. Foreign buyers must be prepared for FIRPTA (Foreign Investment in Real Property Tax Act) and HARPTA (Hawaii Real Property Tax Act). When you sell, the government currently withholds 15% for the Feds and 7.25% for the state—meaning over 22% of the total sales price is held back at closing. Furthermore, remember the “Green Card Myth.” Buying a multi-million dollar luxury home in Honolulu does not grant you a U.S. passport or a visa to live here 365 days a year. Finally, while financing is possible for foreign nationals, expect to put down 30% to 40% and deal with heavy paperwork. Cash is always king.
Navigating this requires a tax professional and a broker who knows the critical difference between a sound investment and a vacation nightmare. Stop dreaming and start owning the right way.
Personal: https://jasonwong.us
Firm: https://islanddragonfly.com
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