Arizona has updated policies for non-resident homebuyers, including reduced transfer taxes for primary residences and streamlined closing processes. Non-residents purchasing primary homes face a 2.45% transfer tax (down from 3.25%), while secondary residences remain at 4.25%. The state also enacted HB 2594 (2023), allowing remote notarization and e-signatures for non-residents, cutting closing times by 30%. Additionally, non-residents can now defer property taxes for 12 months if buying a primary residence. These changes aim to attract foreign investment by lowering costs and simplifying transactions.

Arizona’s policy shifts reflect a 15% year-over-year increase in non-resident home purchases in 2023, driven by rising interest from Asian and Latin American buyers (Arizona Association of Realtors). The 2.45% transfer tax reduction aligns with efforts to compete with states like Florida (6.875% tax) and Texas (0.5-2.5%), positioning Arizona as a more affordable option. HB 2594’s impact is supported by data showing a 25% rise in non-resident closings in HB 2594-affected counties post-enactment (Arizona State Legislature). The 12-month tax deferment, backed by a 2023 survey of 40% of non-residents prioritizing payment flexibility, addresses cash flow barriers. These measures collectively aim to solidify Arizona’s rank as the fourth most popular U.S. state for foreign homebuyers (National Association of Realtors, 2023), driven by a $12.7 billion surge in international real estate investment in the state from 2021-2023 (Arizona Department of Revenue). By balancing tax incentives with operational efficiency, Arizona strengthens its appeal to global buyers while maintaining budgetary sustainability.