Last updated: July 15, 2026 · By Clint Hansen, Broker
Yes. Hawaii places no citizenship or residency requirement on real estate ownership. Foreign nationals can purchase fee-simple property on Maui and throughout the state exactly the way a U.S. citizen can — the same listings, the same purchase process, the same title protections. What changes for a foreign buyer is usually financing access and tax withholding rules that apply later at sale, not the underlying right to own the property.
Fee simple ownership means you own the land and the structure outright, indefinitely — this is the most common form of ownership on current Maui listings and generally the most desirable. Leasehold ownership means you own the structure but lease the underlying land for a fixed term from a separate landowner; when that lease expires, the land — and sometimes the improvements — reverts to the landowner unless the lease is renewed or the fee interest is purchased outright. Leasehold still exists on some older Hawaii properties, so always confirm which type of ownership a specific listing offers before you make an offer.
It's possible, but generally harder than it is for U.S. citizens or permanent residents. Fewer lenders offer foreign-national loan programs, down payment requirements tend to be larger, and documentation requirements are stricter since many foreign buyers don't have a U.S. credit history. For these reasons, a significant share of international buyers purchase in cash rather than financing. Lender programs and terms change, so it's worth talking to a lender who specifically handles foreign-national mortgages in Hawaii early in your search — before you fall in love with a property.
HARPTA (the Hawaii Real Property Tax Act) is a state withholding requirement that applies when a non-resident of Hawaii sells real property in the state. At closing, a percentage of the gross sales price — commonly cited at around 7.25% — is withheld and remitted to the state as a prepayment toward the seller's eventual Hawaii tax liability. Importantly, HARPTA is not a tax on buying property; it only comes into play when a non-resident later sells. It applies to any non-resident seller, not exclusively to foreign nationals, though it's a common question for international owners planning an eventual sale.
FIRPTA (the Foreign Investment in Real Property Tax Act) is the federal counterpart to HARPTA. It requires withholding — commonly cited at around 15% — of the sales price when a foreign person sells U.S. real property, remitted to the IRS as a prepayment toward the seller's eventual federal tax liability. HARPTA and FIRPTA are separate withholdings — one state, one federal — that can both apply on the same sale, and both are settled at sale, not at purchase. A cross-border tax professional can advise on available exemptions, reduced-withholding certificates, and how the withheld amount reconciles against your actual tax bill when you file.
Hawaii's property taxes are comparatively low relative to many mainland states, but exact rates vary by county and by how a property is classified — owner-occupied, long-term rental, short-term/vacation rental, vacant land, and so on. Confirm current Maui County rates for your specific property type before you buy. Vacation-rental rules are set at the county level and have been actively evolving — see our guide on buying a Maui vacation rental for the current landscape. 1031 exchanges are a U.S. tax-code mechanism built around U.S. tax situations, so foreign investors considering one should consult a cross-border tax professional about how — or whether — it applies to their circumstances.
Buying from outside the U.S.? Clint works regularly with international buyers (English, conversational
Spanish, conversational Portuguese) and can point you to the right attorney and CPA for your situation.
Clint Hansen, Broker (RB-21616) · 26 years
serving Maui County · The Hansen Ohana, Maui Luxury Real Estate LLC (RB-21577)
Wailea Town Center, Wailea, Maui, HI 96753
Office: (808) 879-3667 · clinthansen@mauirealestate.net
