Do International Buyers Pay More Taxes on Homes in Texas?

Summary: While international buyers are subject to the same property tax rates as U.S. citizens in Texas, there are key differences that can result in a higher tax burden—especially for luxury homes. This guide clarifies what international homebuyers should expect when purchasing in Dallas.

Texas Treats Foreign and U.S. Buyers Equally—With One Exception

Property tax rates in Texas are the same regardless of citizenship. However, the key difference lies in eligibility for tax exemptions.

Exemptions That Don’t Apply to Foreign Buyers

• Homestead Exemption: Only available to permanent Texas residents using the home as their primary residence

• Disabled or Over-65 Exemptions: Typically restricted to U.S. residents with verified status

As a result, international buyers purchasing a second home or investment property in Dallas won’t benefit from these deductions.

Example: $1 Million Home in Dallas County

Buyer Type	Effective Tax Rate	Annual Property Tax	Eligible for Exemption?
U.S. Citizen (Primary Residence)	2.13%	$21,300	Yes
Foreign National (Non-Primary)	2.13%	$21,300	No

While the tax rate is the same, U.S. citizens could reduce this through exemptions.

Are There Any Extra Taxes for Foreign Buyers?

No. Texas law does not impose additional real estate taxes specifically on foreign nationals. All buyers—domestic or international—pay the same closing costs, property taxes, and title fees.

Other Financial Considerations

• Foreign sellers may be subject to FIRPTA withholding at sale (up to 15% of gross sale price)

• Annual property taxes must be paid on time, regardless of residency

Quote: "International buyers don’t pay more in taxes—they just miss out on certain exemptions. That makes expert planning even more important."

Tips to Minimize Long-Term Costs

• Consider forming a U.S.-based LLC to manage multiple investments

• Work with a local CPA familiar with foreign national clients

• Understand all tax obligations before closing on your property

Work with a Global REALTOR® Who Understands Tax Planning

Nitin Gupta, CRS, GRI, CIPS, specializes in helping international buyers structure their purchases efficiently. Learn about his qualifications: https://www.nitinguptadfw.com/dallas-realtor-designations

Schedule your consultation with Nitin Gupta today: https://www.nitinguptadfw.com/contact

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When purchasing a luxury home in Dallas, Texas, it’s essential to consider factors such as location, architectural style, security, and amenities to ensure the home meets both lifestyle and investment needs. By selecting a property in a prestigious neighborhood with numerous amenities and security measures, buyers can ensure they’re making a valuable and rewarding investment in the vibrant Dallas market.

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