Property Market

New Texas law bans property purchase and rent for certain foreigners

Starting this September, SB 17 goes into effect in Texas, prohibiting the purchase and rental of property by foreign citizens.

El gobernador de Texas, Greg Abbott, durante una conferencia de prensa en Austin, Texas.
Sergio Flores

On September 1, Texas Senate Bill 17 (SB 17) went into effect. The law prohibits foreign citizens from countries deemed a threat to U.S. national security from purchasing or renting property in the Lone Star State.

The measure, approved by both the Texas Senate and House of Representatives, responds to the Intelligence Community’s threat report, which highlights the risks of foreign influence in the real estate sector. The ban is not limited to houses or apartments—it extends to a wide range of properties, including:

  • Agricultural land used for crops, livestock, or plantations
  • Improvements constructed on rural land
  • Commercial and industrial properties
  • Groundwater wells and reserves
  • Residential housing
  • Mines, quarries, and mineral rights
  • Forests, standing timber, and water rights attached to land

The law specifically targets foreigners from countries considered threats to U.S. national security, including China, Iran, North Korea, and Russia. It applies broadly, covering not only individual citizens but also governments, businesses, agents, political party members, and organizations associated with these nations.

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Although the bill has sparked controversy, it is not the first legislation of its kind in the United States. According to the BBC, 26 states currently have at least 50 bills restricting foreign ownership, particularly targeting Chinese citizens. Many of these laws were enacted following the incident in which a Chinese spy balloon entered American airspace.

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