Bill · H.R. 3588· House(119-HR-3588)
Real Estate Reciprocity Act
- Introduced
- 5/23/2025
- Last activity
- 5/23/2025 — Referred to the Committee on Ways and Means, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Sponsored by
- Pat Harrigan
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Real Estate Reciprocity Act aims to amend the Internal Revenue Code regarding real estate purchases by non-citizens. It requires all such purchases by certain individuals to be reported to the Internal Revenue Service. The bill imposes a 50 percent tax on the acquisition of United States real property by "disqualified persons." A "disqualified country" is defined based on a report regarding foreign nations that prohibit U.S. citizens from owning real estate. Additionally, the act mandates reporting requirements for those responsible for closing real estate transactions.
Yes
Does this give the federal government more power?+2
The bill expands federal reporting requirements and taxation authority over foreign real estate transactions.
Does this make what the government does easier for the public to see?+1
The bill increases transparency through required reporting of foreign direct investments in real property.
The opposite· 3 of 4
Would immigrants be better off under this?-5
The bill targets non-citizens with a heavy 50 percent tax on real estate acquisition.
Does this protect people from being watched or searched?-3
The bill mandates the disclosure of personal information including name, address, and TIN for real estate transactions.
Would business owners be better off under this?-2
Title companies and attorneys face new compliance burdens and reporting obligations.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Reporting of Foreign Investments: Section 2 amends the Internal Revenue Code to ensure that returns are required for foreign persons holding direct investments in United States real property interests, regardless of whether they engage in a trade or business in the U.S.
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Identification of Unfair Foreign Practices: Section 3 requires the Secretary of State to provide an annual report to the Secretary of the Treasury regarding foreign countries that prohibit U.S. citizens from owning real estate, which provides transparency regarding international property ownership restrictions.
Potential Negative Impacts for People
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High Tax Burden on Certain Foreign Buyers: Section 4 imposes a tax equal to 50 percent of the amount paid for United States real property on "disqualified persons," which includes citizens or entities of countries that prohibit U.S. ownership of real estate.
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Compliance Burdens for Professionals: Section 4(b)(1)(c) defines the "required reporting person" as those responsible for closing a transaction, such as an attorney or title company, who must now file returns containing the buyer's name, address, and Taxpayer Identification Number.
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Requirement for Affidavits: Section 4(b)(4) requires a "presumptively disqualified person" to furnish an affidavit under penalty of perjury stating they are not a disqualified person to avoid specific reporting obligations.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Immigrants-5Good For Business Owners-2
- Economy And Finance
- Improves Economic Growth-2
- Governance And Ideology
- Increases Federal Power+2Improves Government Transparency+1Improves Privacy Rights-3
- 5/23/2025
- Referred to the Committee on Ways and Means, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Introduced in House