North Carolina Congressman Pat Harrigan is introducing a bill to the U.S. Congress aimed at preventing foreign adversaries from “buying our country” when Americans cannot afford homes.
The bill, named the Real Estate Reciprocity Act, targets countries that do not allow Americans to buy land within their borders, as reported by Fox News.
Harrigan stated that foreign entities and individuals are buying up U.S. real estate, even though Americans are not allowed to purchase property in their countries. To address this issue, he decided to propose legislation.
According to the drafted bill, if a foreign government does not permit Americans to buy real estate in their country, the U.S. government will impose a 50% tax on nationals and entities associated with that government when they purchase property in the U.S.
The bill would require all foreign citizens purchasing land to register with the Internal Revenue Service (IRS) and mandate the U.S. Secretary of State to annually report which countries prohibit U.S. citizens from owning real estate within their borders.
In a statement given to Fox News, Harrigan said, “While American families struggle to afford homes, foreign adversaries are buying our country with cash – farmlands, communities, even lands near military bases. These regimes prohibit Americans from owning land on their territory, yet they feel entitled to claim our land.”
The Republican congressman indicated that his proposed bill would impose a 50% tax on transactions involving such buyers and require mandatory disclosure of information.
Many countries outright ban or severely restrict foreigners from purchasing land within their territories. Switzerland, New Zealand, Denmark, the Philippines, Poland, and Vietnam have strict written regulations. In China and Saudi Arabia, foreigners cannot buy land but can invest in real estate.
As this bill has been introduced, the U.S. government and states are enacting a series of laws to address the increasing trend of Chinese entities and individuals buying farmlands in the U.S., especially near military bases. States such as Texas, Florida, Arkansas, Louisiana, Mississippi, North Carolina, Indiana, and Alabama have passed such legislation, with some already in effect.
At the federal level, actions have been taken, becoming a bipartisan consensus. For example, in May 2024, former President Biden issued an executive order to shut down a company held by Chinese individuals, MineOne Partners Ltd, and its affiliate in Wyoming for their proximity to a U.S. Air Force base.
Data from the U.S. Department of Agriculture shows that as of last year, Chinese entities and individuals own approximately 350,000 acres of farmland across 27 states in the U.S.
(This article is based on reporting from Fox News)