Generally, there are no restrictions on foreign investment in real estate. But there are some tax withholding rules at the time of disposition of property by a foreign person. As per the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), foreign persons have to pay tax on the realisation obtained on dispositions of US real property. This tax is applicable in almost all types of transactions including exchange, liquidation, redemption, gift and transfer etc. Initially,15% withholding tax by foreign investors on the gross amount realised on the sale of a US real property. If it is a company the withholding tax will be 21% on the profit it gets on distribution to its shareholders.
If the land is agricultural land in the US, the transaction should be reported to the US Department of Agricultural.