The international protocol for sophisticated property acquisition

Acquiring a premier piece of luxury real estate in Beverly Hills and other high-end markets in Los Angeles County is both a lifestyle decision and a carefully planned investment.

For international buyers, acquiring a significant property in Los Angeles is more than a real estate decision. It can involve privacy, financing, tax planning, and estate considerations, as well as long-term family goals.

Foreign nationals can buy property in California, but the process is smoother when the right structure is in place from the beginning. In markets such as Beverly Hills, Bel Air, Holmby Hills, and Malibu, the strongest acquisitions begin with preparation, discretion, and a clear understanding of how the process works.

This international buyer guide for California real estate is designed to make that process easier to understand, especially for clients approaching the market from abroad.

Start with the right advisory team

For a global ultra-high-net-worth buyer, the first step is not always the property search. It’s assembling the right team.

Several professionals may need to be involved early:

• Real estate advisor: Identifies the right properties, understands value, manages access, protects discretion, and negotiates terms.
• Cross-border tax advisor: Helps the buyer understand U.S. tax exposure and how the purchase may interact with tax obligations in the buyer’s home country.
• Real estate attorney: Reviews legal documents, ownership structure, title matters, and transaction risks.
• Estate planning counsel: Advises on how the property may fit into a family wealth plan, future transfer strategy, or legacy structure.
• Private banker or lender: Prepares financing, proof of funds, reserves, and currency movement.
• Escrow, title, insurance, and property management professionals: Help manage the closing process, protect the asset, and prepare for ownership after the purchase.

For UHNW buyers, these advisors should be part of the conversation from the start. The wrong structure, timing, or documentation can create complications later, especially when multiple jurisdictions are involved.

How should international buyers decide on how the property will be owned?

One of the most important questions for an international buyer is how the property should be held. Some international buyers purchase in their own names, while others use a trust, LLC, or another structure, depending on privacy, liability, tax, financing, and estate planning goals.

There isn’t one right answer. A personal residence may need a different approach than an investment property, rental home, or asset meant for future transfer. That’s why legal and tax guidance should be part of the conversation before an offer is made.

The right ownership approach can affect privacy, control, succession planning, tax filing, financing, and how easily the property may be sold or transferred in the future. It may also affect what information needs to be provided to banks, lenders, escrow, title companies, or government agencies.

How international buyers can set the financial groundwork

In a luxury transaction, the strongest offer is often the one that feels the most certain. Sellers want to know that a buyer is prepared, qualified, and able to close without unnecessary delays.

Proof of funds and financing

For international buyers, that usually means having proof of funds ready before an offer is made.

If financing is involved, it helps to have the lending conversation well underway. Cash can be an advantage, especially in a competitive or private sale, but it doesn’t remove the need for documentation. Escrow, title companies, banks, and other parties may still ask for clear records showing where the funds are coming from and how they’ll be transferred.

Foreign nationals may also be able to finance a purchase, though the requirements can be more detailed than they are for U.S. buyers. Depending on the lender, buyers may need a larger down payment, proof of income or assets, bank statements, reserves, identification, and an ITIN if they don’t qualify for a Social Security number.

Currency movement planning matters

Currency movement should also be planned early. Exchange rates, international wires, bank reviews, and transfer timelines can all affect the pace of a transaction. Even a highly motivated buyer can lose momentum if the funds aren’t positioned in time.

International buyers should have the financial pieces in place, including proof of funds, lending, and transfer planning.

Understand how a California transaction works

For buyers coming from another country, the California process can feel different at first, but it’s fairly straightforward once the main steps are clear.

What happens from offer to escrow

After a written offer is accepted, the transaction moves into escrow. Escrow is handled by a neutral third party that helps manage the funds, documents, instructions, and closing details. During this period, the buyer typically has time to review disclosures, inspect the property, study title documents, confirm financing, and resolve any agreed-upon contingencies.

What buyers should review

This review period matters because it’s the buyer’s opportunity to understand exactly what’s being purchased before closing. That may include:

• The home’s physical condition
• Seller disclosures
• Title documents
• Permits and prior improvements
• Insurance considerations
• Restrictions that could affect future use

For ultra-luxury estates, the review may go even deeper, including privacy, security, staff access, guest accommodations, hillside or coastal conditions, wildfire exposure, and renovation potential.

Closing the transaction

Closing is usually handled through signed documents, final funds, and deed recording rather than a formal sit-down meeting. Once the funds are received and the deed is recorded, ownership transfers to the buyer.

Tax considerations to address early

International buyers don’t need to become U.S. tax experts, but they should understand which issues may affect ownership, sale, or transfer. Foreign investment in U.S. real estate is not only about acquiring a property; it also requires planning for taxes, reporting, future sale, and estate considerations.

• FIRPTA withholding
  If a foreign owner later sells a U.S. real property interest, FIRPTA, the Foreign Investment in Real Property Tax Act of 1980, may apply. According to the IRS, the sale of a U.S. real property interest by a foreign person is generally subject to withholding at 15% of the amount realized. This is not necessarily the final tax owed, but it can affect closing proceeds and should be planned for before a sale.
• ITIN requirements
  Foreign sellers may need a U.S. taxpayer identification number to request reduced withholding or pay required withholding. Individuals who don’t qualify for a Social Security number may need an Individual Taxpayer Identification Number (ITIN) for this purpose.
• Estate planning
  International owners also need to consider how U.S. estate tax rules apply. An estate tax return may be required if the fair market value of U.S.-situated assets exceed $60,000 at death. For an ultra-luxury California property, that threshold is very low compared with the value of the asset.

Start your property acquisition with the right strategy

Buying a significant property in Los Angeles as an international client doesn’t have to feel complicated, but it does need to be approached with care. The strongest acquisitions begin with the right advisors, the right structure, and a clear understanding of what the purchase will require before, during, and after closing.

I have worked with clients from around the world as they navigate some of Southern California’s most important real estate decisions. If you’re considering Beverly Hills luxury real estate, Bel Air, Holmby Hills, Malibu, or another premier Los Angeles market, I’d be happy to help you begin.

Get in touch with me, Joyce Rey, at 310.291.6646. You can also send me an email here to start your foray into the world of foreign investment and Beverly Hills luxury real estate.