Non-residents can purchase homes in Washington DC by establishing residency, working with licensed local agents, securing financing through international lenders, and adhering to tax regulations. They must complete a property transfer through a local escrow agent, pay applicable transfer taxes (1-2.25%), and comply with DC’s foreign investment laws. Sales after one year may incur capital gains taxes at 20% if the property is not their primary residence.

Non-residents can buy DC homes due to the city’s open real estate market and tax incentives for long-term investments. DC’s Office of Planning reports that foreign buyers accounted for 8% of residential transactions in 2022, driven by its stable economy and global appeal. The average DC home price in 2023 was $735,000, with non-residents often targeting luxury properties in areas like Northwest DC. Tax policies encourage retention, as the 20% capital gains rate applies only after one year, incentivizing holding periods. Additionally, DC’s 1031 Exchange program allows non-residents to defer taxes on like-kind property sales, similar to U.S. residents. Data from the National Association of Realtors shows DC ranks 12th in foreign investment in U.S. real estate, reflecting its competitive edge in attracting international capital. Compliance with local regulations and partnerships with DC-based legal/financial advisors remain critical to mitigating risks.