A buyer from Tokyo recently asked us: "Can I actually own property in Hawaii, or is there some rule that prevents it?" The short answer is no — there is no restriction. Hawaii, unlike many countries, places no limits on foreign ownership of real estate. A Canadian retiree, a Japanese investor, an Australian family wanting a vacation home — all of them can buy, own, and sell Hawaii property with the same rights as any American citizen.
What foreign buyers do face are extra tax obligations, different financing options, and a closing process that requires some advance planning. None of it is complicated once you know the rules. This guide lays out the complete process from start to finish with exact numbers, deadlines, and forms — no vague generalities.
⚡ Quick Take
- No foreign ownership restrictions exist in Hawaii — aliens have had the same property rights as US citizens since 1923 (Source: Hawaii Revised Statutes, 1923 Land Law repeal)
- FIRPTA withholding applies when you eventually sell: 15% of the sale price on properties over $1M, 10% on $300K–$1M if the buyer uses it as a primary residence (Source: IRS Publication 515)
- HARPTA is Hawaii's state-level withholding — an additional 7.25% of the sale price withheld for non-Hawaii residents at closing (Source: Hawaii Department of Taxation)
- Foreign national mortgages are available but require 25–30% down and higher reserves compared to standard loans (Source: portfolio lender guidelines)
- You will need an ITIN (Individual Taxpayer Identification Number) from the IRS if you don't have a Social Security Number — apply using IRS Form W-7 (Source: IRS.gov)
- Hawaii's General Excise Tax (GET) at 4.712% on Oʻahu applies to any rental income your property generates (Source: Hawaii Department of Taxation)
Step 1 — Understand Your Legal Right to Buy
Hawaii law gives non-citizens identical property ownership rights to US citizens. You can purchase any type of property: single-family home, condo, multi-unit, commercial, or land. You can hold it in your personal name, in a US LLC, or in a foreign entity (though the last option creates additional filing complexity).
Buying property in Hawaii as a foreigner works similarly to buying as a US citizen at the title company level — the paperwork is largely the same. The meaningful differences show up at tax time, not at the closing table, and we always make sure foreign buyers work with a tax advisor who understands Hawaii-specific rules.
There is no minimum stay requirement, no visa requirement to own, and no government approval needed. Owning Hawaii real estate does not grant you any immigration rights or residency status.
Step 2 — Get Your US Tax ID (ITIN)
Before you can close on a purchase, you will need a US taxpayer identification number. If you have a Social Security Number, you are already set. If not, you need an ITIN — Individual Taxpayer Identification Number.
| Document | What It Is | Who Needs It |
|---|---|---|
| **SSN** (Social Security Number) | 9-digit ID for US citizens and authorized workers | US citizens, green card holders, work visa holders |
| **ITIN** (Individual Taxpayer Identification Number) | IRS-issued ID for people who must file US taxes but cannot get an SSN | Most foreign buyers |
| **EIN** (Employer Identification Number) | Business tax ID | Required if buying through a US LLC or corporation |
To get an ITIN, file IRS Form W-7 with proof of foreign status and identity (passport works). Processing takes 6–11 weeks if you mail it, or faster if you use a Certified Acceptance Agent (CAA) in your home country or an IRS Taxpayer Assistance Center.
Pro tip: Start this process before you make an offer. Waiting until you have a signed contract and then scrambling for an ITIN adds stress to an already compressed timeline.
Step 3 — Finance the Purchase or Buy Cash
Cash purchases are common among international buyers and simplify the process significantly — no lender approval, no appraisal requirement, and faster closings. Hawaii's real estate market has a significant share of cash buyers, particularly from Japan and Canada.
If you need financing, foreign national mortgage loans are available through certain portfolio lenders. These are not conventional Fannie Mae/Freddie Mac loans, which generally require a US Social Security Number. Portfolio lenders keep the loan on their own books and set their own rules.
Typical foreign national loan requirements (Oʻahu, 2026):
| Requirement | Standard US Loan | Foreign National Loan |
|---|---|---|
| Down payment | 3–20% | 25–30% minimum |
| Reserves | 2–3 months | 6–12 months liquid |
| Credit history | US credit score | Foreign credit history or bank references |
| Income verification | US tax returns | Foreign tax returns + bank statements (12–24 months) |
| Interest rate premium | — | Typically +0.5–1.5% above standard rates |
A foreign national mortgage is more expensive and requires more cash upfront. If you are buying a $900,000 condo, plan for $225,000–$270,000 down plus 6–12 months of mortgage payments sitting in a verifiable account. We help international buyers understand all of this before they start shopping.
See our guide to foreign national mortgages in Hawaii for a full lender breakdown.
Step 4 — Make an Offer and Open Escrow
The purchase process in Hawaii works through escrow — a neutral third party (title/escrow company) that holds funds and coordinates the closing. Once your offer is accepted, you open escrow and deposit earnest money, typically 3% of the purchase price.
Have questions about this?
(808) 927-0508Hawaii's escrow period is typically 30–45 days for financed purchases and 21–30 days for cash. During escrow, you will:
- Complete your inspection (strongly recommended — hire a Hawaii-licensed inspector)
- Review the preliminary title report
- Secure financing (if applicable)
- Review condo association documents if purchasing a condo
- Review leasehold documents if the property is leasehold
For international buyers closing remotely, the escrow company can send documents via DocuSign and receive funds via international wire transfer. More on this in our remote buying guide.
Step 5 — Understand FIRPTA and HARPTA Before You Buy
You should understand both of these before you buy, not after — because they affect your eventual sale and your cash planning.
FIRPTA (Federal) — The Foreign Investment in Real Property Tax Act requires the buyer to withhold a portion of the sale price from any foreign seller and remit it to the IRS. Rates as of 2026:
| Sale Price | Buyer's Use | Withholding Rate |
|---|---|---|
| Under $300,000 | Buyer uses as primary residence | 0% (exempt) |
| $300,000 – $1,000,000 | Buyer uses as primary residence | 10% |
| Over $1,000,000 | Any use | 15% |
HARPTA (State) — Hawaii's Withholding on Dispositions of Hawaii Real Property adds 7.25% state withholding on top of FIRPTA for any seller who is not a Hawaii resident — including US citizens who live elsewhere.
When you eventually sell, the buyer's title company will automatically withhold up to 22.25% (15% FIRPTA + 7.25% HARPTA) from your proceeds and send it to federal and state tax authorities. You file tax returns and get back anything above your actual tax liability — but expect the process to take 3–9 months. A good tax advisor makes this process much smoother.
The withholding is not your final tax — it is a deposit against whatever capital gains tax you actually owe. Foreign sellers with a small gain or a net loss can apply for reduced withholding certificates (IRS Form 8288-B / Hawaii Form N-288B) before closing to avoid over-withholding. See our full FIRPTA and HARPTA guide for step-by-step instructions.
Step 6 — Budget for Ongoing Taxes and Compliance
Owning Hawaii property as a foreign national creates annual obligations:
Property Tax: Same rates as any Hawaii owner. Oʻahu residential rate is $3.50 per $1,000 of assessed value. If the property is your primary residence, you can claim the homeowner exemption ($100,000 exemption on assessed value for under age 65). If it is a rental or vacation home, the investor rate of $6.00 per $1,000 applies.
Rental Income — General Excise Tax: If you rent the property, you must get a Hawaii GET license ($20, one-time) and file GET returns. On Oʻahu, the passable rate is 4.712% on gross rental income. (Source: Hawaii Department of Taxation)
Rental Income — US Federal Tax: Foreign property owners who earn rental income from US real estate must file a US tax return (Form 1040-NR). You can elect to treat rental income as "effectively connected income" (ECI), which lets you deduct expenses (mortgage interest, property taxes, management fees, depreciation) before calculating tax — generally the better option.
Annual Reporting (if using US LLC): If you hold the property through a single-member US LLC, the IRS requires Form 5472 and a pro forma Form 1120 each year. Missing this filing triggers a $25,000 penalty per occurrence.
What This Means for International Buyers
Hawaii is one of the most straightforward places in the world for foreign nationals to buy real estate. No approval process, no ownership limits, no special permits. The complexity is entirely on the tax side — and that complexity is manageable with the right accountant and agent.
Budget an extra $2,000–$4,000/year for a CPA familiar with US-international tax law. For buyers from Japan, Canada, Australia, or the UK, tax treaties with the US may reduce your capital gains tax exposure when you sell — your CPA can evaluate your specific situation.
The buyers who run into trouble are the ones who discover FIRPTA and HARPTA at closing, not before. Read those sections above carefully before you make your first offer.
Frequently Asked Questions
Do I need a US visa to buy property in Hawaii?
No. Owning US real estate requires no visa and confers no immigration status. You need a valid visa or entry authorization to physically visit the property, but the ownership itself has no immigration requirements. Many foreign owners of Hawaii properties never live there full-time.
Can I buy Hawaii real estate in my foreign company's name?
Yes, but it creates significant complexity. A foreign corporation owning US real estate has its own set of IRS filing requirements and is subject to a Branch Profits Tax of up to 30% on income repatriated to the foreign entity. Most international tax attorneys recommend forming a US LLC (owned by the foreign person or entity) rather than direct foreign entity ownership.
How does Hawaii property appreciation compare for foreign buyers factoring in currency exchange?
It varies significantly by currency. During periods when the Japanese yen weakened against the USD (as it did sharply in 2022–2024), Japanese buyers saw their effective USD cost of Hawaii property rise dramatically, while Japanese sellers benefited from the exchange rate. Canadian buyers are less exposed — the CAD/USD rate is relatively stable. Always discuss currency risk with a financial advisor before committing.
Can my foreign bank wire transfer funds to a Hawaii escrow account?
Yes. Hawaii title and escrow companies routinely receive international wire transfers via SWIFT. You will need your bank's SWIFT code, the escrow company's routing and account number, and the reference/case number for your transaction. Wire transfer fees are typically $25–$50 from your bank plus potential intermediary bank fees. Budget an extra business day for international wires vs. domestic.
Is there a minimum purchase price or property type restriction for foreign buyers?
No minimum purchase price, no property type restriction. Foreign nationals can buy any property type — from a $150,000 leasehold studio to a $10M oceanfront estate. The only caveat is financing: foreign national loan programs typically have minimum loan amounts of $100,000–$150,000, so very low-priced properties are usually cash purchases.