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Buy your Apartment in Manhattan, New York City

by | Aug 25, 2022 | Real estate

Buy an apartment in Manhattan, New York City – Luxembourg

Things Foreign Buyers should know about apartments in Manhattan, United States of America 

Many Foreign buyers, when it comes to buying an Apartment In Manhattan, might be clueless regarding a number of areas, from how New York real estate works, to their various choices. The following guide is for anyone in this situation, who is contemplating purchasing an apartment in Manhattan despite being a citizen and resident of another country. 

  • One significant thing that must be understood is that no matter what option for New York property ownership one selects, there will be additional expenses associated with it, other than the purchase. Fortunately, an owner can deduct many of these costs from his or her taxable income, such as real estate taxes, carrying charges, and the interest that a co-op shareholder pays from the mortgage. 
  • You will probably need to have a broker, as most sellers have brokers, and these brokers do not represent the buyer’s rights. Brokers offer immunity to the seller, and so the buyer ought to have one, as well. 
  •  
  • There are 3 types of residential property in New York:
    • condos (condominiums),
    • co-ops (cooperatives),
    • and townhouses. 
  • It is possible for a foreigner who is not a US citizen, who does not live permanently in the US, and who doesn’t work there to buy an apartment in New York as long as that individual has enough money to purchase there but note, not every apartment that is shown as available for sale can be purchased by a foreign buyer. 
  • While basically every condo available for sale in Manhattan can be acquired by a foreigner, it becomes a little more complicated in the case of co-ops, so it is advisable to discuss your conditions and your situation with a trusted buyer’s agent and then decide what kind of property to focus on and what would work best for your advantage. 
  • New York Condo apartments are the most ideal option, especially for investor buyers who want to purchase an apartment in order to rent it out. 
  • It’s not that difficult for a foreign buyer to procure a United States mortgage as most of the banks in the US now have programs in place intended for foreign buyers, as long as this buyer fulfils the bank’s lending requirements. 
  • Co-op owners are charged maintenance fees every month, while condo owners are charged common fees as part of their monthly expenses. The better amenities a building has, the higher the fee is, so these charges can range from hundreds to thousands. There are also real estate taxes linked with property ownership that owners have to pay to the city, but owners with diplomatic immunity do not have to pay property taxes. 
  • All dimensions in New York are usually given in feet, and area is described in square feet, so if you come from a metric country, take note of this conversion. 
  • Kitchens in New York are always fully provided with cabinets, a refrigerator, a gas range/oven, and in some cases, with dishwasher and microwave oven. And Bathrooms are usually equipped with mirrored storage cabinets above the sink as well as a sink bathroom vanity cupboard. 
  • If there is a garage in the building, it is never covered by the apartment maintenance fee, so there will be a separate monthly charge if you want to park your vehicle there. 
  • Washer/Dryer is not always allowed inside apartments, so always check with the management, do not assume that you can install Washer/Dryer if you wish to. In newer condos, most apartments do have a washer/Dryer installed. Additionally, essentially all buildings have separate laundry rooms. 
  • Not all buildings allow pets and some might even have weight restrictions on dogs. So make sure to assess before buying. 
  • Having an attorney is also absolutely important. Attorneys are needed to obtain insurance, perform a search on the title, and research any violations on the building, in addition to negotiating the contract, and the initial agreement that goes hand-in-hand with paying the deposit. 
  • In certain buildings, health clubs and pools are usually included in the monthly maintenance fee but in some, there might be an extra charge. 
  • In most condo buildings, gas, heat and hot and cold water are included in the monthly maintenance but occupants will have to pay for other utilities, such as electricity, phone, or cable. 
  • New condo developments could appear a bit more expensive, however, they often have so-called tax abatements, which means that the new owner will pay much lower tax rates for the next decade if they buy in such a building. 
  • When purchasing an apartment in a brand new condo building directly from the sponsor, the buyer is usually asked to pay transfer taxes and the sponsor’s attorney fee, but these can be sometimes negotiable. 
  • A foreign buyer does not necessarily have to buy a condo apartment in New York under his own name. He can purchase it under the name of an LLC. When you buy under the name of an LLC, your real name is hidden from public records.

Before searching for a home in New York City, a buyer should decide on his or her desired neighbourhood, the type of housing he wants, and the purchase price he wants. So when considering all this, a buyer should also decide on his specific needs, such as the amount of space in the apartment, the building’s amenities, and the building’s location and proximity to local amenities. Also, the buyer should consider his income level. 

Are you ready to purchase an Apartment In Manhattan?- Let’s go ahead together and contact your Damalion expert now to buy your apartment in New York. 

Damalion – Luxembourg

Buy your apartment in Manhattan, New York City — condo vs co-op, costs and taxes, broker and attorney roles, financing basics, building rules, and closing steps.

For international buyers, entrepreneurs, family offices and private investors • We help you prepare a clear file and coordinate with trusted providers. Acceptance and timing depend on third parties and building rules.

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What speeds up a Manhattan purchase?

Decide early: condo, co-op, or townhouse. Set budget for price and closing costs. Hire a licensed broker and a New York real-estate attorney. Prepare ID, proof of funds, and (if financing) bank pre-approval. Keep your offer, documents, and timelines simple and consistent.

Basic documents buyers prepare

  • Valid passport/ID and proof of address.
  • Proof of funds (bank statements) and source of funds note.
  • If financing: bank pre-approval and later a formal commitment letter.
  • For co-ops: detailed board application (financials, references, employment letter).
  • Attorney details for contract review and title/coop due diligence.

Property types at a glance

Topic Condo Co-op Townhouse
Ownership Real property (deed + unit) Shares in a corporation + proprietary lease Land + building (fee simple)
Board approval Usually limited review Full board package + interview N/A
Subletting Often allowed (building rules apply) Restricted; policy varies by building Allowed (zoning and leases apply)
Closing timeline Often faster Longer (board process) Varies with inspections and financing
Typical buyer Foreign/investor or owner-occupier Primary residence buyers Owner-occupier or family office

From offer to closing – plain steps

  1. Choose area and building type. Shortlist homes that match budget and rules.
  2. Make an offer. Price, deposit, and key terms in writing via your broker.
  3. Attorney review. Review contract, building financials, title/coop documents.
  4. Sign and deposit. Buyer signs; deposit (escrow) is paid.
  5. Financing (if any). Appraisal and bank commitment.
  6. Co-op board or condo package. Submit complete file; attend interview if required.
  7. Closing. Sign documents; pay balance and taxes; receive keys.

Costs and taxes

  • Mansion Tax (NY State): applies to homes ≥ $1,000,000. Rates increase by price band (about 1.0% to 3.9%).
  • Transfer Taxes: usually a seller cost in resale; in new development/sponsor deals buyers often pay them (negotiable).
  • Mortgage Recording Tax: buyer pays on condo/townhouse loans (not co-ops). Approx. ~1.8% or ~1.925% of the loan amount in NYC (lender contributes 0.25%).
  • Title/attorney/inspection/escrow fees: vary by deal and property type.
  • Building charges: condo common charges / co-op maintenance; plus property tax (condo/townhouse) or tax embedded in co-op maintenance.

Frequently asked questions

1) Can non-US buyers purchase a Manhattan apartment?
Yes. There is no New York or US rule that prohibits foreign buyers. Buyers must comply with US sanctions and anti-money-laundering checks, provide ID and proof of funds, and meet building policies.
2) What is the legal difference between a condo and a co-op?
A condo is real property (you receive a deed). A co-op is personal property (you buy shares in a building corporation and receive a proprietary lease). Co-ops apply stricter approval rules and set sublet limits.
3) Do I need an attorney?
In New York City, buyers customarily retain a licensed real-estate attorney. The attorney reviews the contract and building records, checks title (or co-op lien searches), confirms taxes and charges, negotiates riders, and manages closing documents.
4) What taxes apply to buyers at closing?
Common items are the NY State Mansion Tax (for purchases at or above $1,000,000, with progressive rates up to 3.9%) and the Mortgage Recording Tax on condo/townhouse loans (not co-ops). Transfer taxes are normally seller-paid in resales but are often buyer-paid in sponsor/new-development deals unless negotiated otherwise.
5) How does the NYC Mortgage Recording Tax work?
It applies to recorded mortgages for condos/townhouses. The combined NYS/NYC rate is about ~1.8% for loans under $500,000 and ~1.925% for loans of $500,000 or more. Lenders typically contribute 0.25%. Co-op loans are not recorded the same way and generally avoid this tax.
6) Who pays transfer taxes?
In most resale transactions, the seller pays NYS and NYC transfer taxes. In sponsor/new-development sales, buyers often pay them; this is contractual and negotiable.
7) Are short-term rentals legal?
Short-term rentals (<30 days) in most apartments are heavily restricted by NYC law and building rules. Hosts must register with the City under Local Law 18, meet strict conditions, and many buildings prohibit such rentals. Buyers seeking rental income should plan for long-term leases only, subject to building rules.
8) Do building climate rules affect buyers?
Yes. Local Law 97 sets emissions caps for large buildings with fines starting for non-compliance. Boards may pass costs through maintenance/common charges over time to fund energy upgrades.
9) Is beneficial ownership disclosure required for LLCs?
New York’s LLC Transparency Act begins January 1, 2026 (state filings for LLC beneficial ownership or an exemption statement). Federal beneficial ownership reporting is evolving; all-cash purchases by entities/trusts will have new FinCEN reporting from December 1, 2025. Buyers should seek counsel on current obligations.
10) Are there limits on buying in a co-op as a foreign investor?
Co-ops may restrict non-primary use, pied-à-terre, or investor ownership. Approval is discretionary. Many foreign buyers choose condos for simpler approvals and leasing flexibility.
11) Can I buy using an LLC or trust?
Yes, subject to lender, building, and legal requirements. Expect to provide beneficial owner information to counterparties and, from 2025/2026, to authorities under applicable rules. Buildings may request personal guarantees.
12) What is a board package?
For co-ops (and sometimes condos), buyers submit a detailed application with financials, references, and documents. Co-ops usually interview applicants and may approve or reject without stating a reason, consistent with fair-housing laws.
13) What is “sponsor” or “new development” and why are closing costs higher?
In sponsor sales (new or converted buildings), the buyer commonly pays NYS/NYC transfer taxes and sponsor’s legal fees in addition to standard buyer costs. Terms are set by the offering plan and contract and may be negotiable.
14) Are there property tax abatements?
Some new buildings offer limited abatements or exemptions. Programs change over time and are building-specific. Your attorney reviews the offering plan and tax documents to confirm current status and expiry.
15) What inspections are common?
For condos/townhouses: a home inspector can check unit/systems; in co-ops/condos, attorneys review building financials and engineering reports. Townhouses may need additional structural, roof, and environmental checks.
16) What funds are due at contract and at closing?
At contract: typically a 10% deposit (escrow). At closing: balance of price, taxes, lender fees, title or lien search costs, and building move-in/common charges as applicable.
17) How long does a closing take?
Cash condo deals can close in weeks after contract. Co-ops with financing and board approval can take a few months. Timelines depend on the building, lender, and completeness of your file.
18) Can I rent out the apartment after purchase?
Condos generally allow leases subject to building rules and minimum terms. Co-ops often restrict sublets (caps, waiting periods, or approvals). Short-term stays (<30 days) are usually not allowed.
19) Are there limits on international funds?
Banks, attorneys, and title/escrow agents must comply with AML laws. Expect requests for wire provenance, bank letters, and sanctions screening. Some buildings require additional comfort on lawful source of funds.
20) What ongoing costs should I expect?
Common charges or maintenance, property taxes (or tax portion in co-op maintenance), utilities, insurance, and any assessments for building projects or legal compliance (e.g., energy retrofits).

10 Best Things to Do in New York City in 24 Hours

Focus on landmarks in Manhattan with quick transfers between Midtown and Downtown.

  1. Statue of Liberty & Ellis Island – national monuments and immigration history. Jump to map
  2. Empire State Building – classic observatory and Art Deco icon.
  3. Central Park – lakes, paths, and viewpoints.
  4. The Metropolitan Museum of Art (The Met) – global collection.
  5. Museum of Modern Art (MoMA) – modern and contemporary masters.
  6. 9/11 Memorial & Museum – memorial and exhibitions.
  7. Times Square – lights, billboards, and theaters.
  8. Broadway – official show information and theaters.
  9. Brooklyn Bridge Park – skyline views across the East River.
  10. Top of the Rock – observatory at Rockefeller Center.

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10 Best Hotels in New York City

Central hotels with official direct-booking links.

  1. The Plaza Hotel – Fifth Avenue landmark at Central Park.
  2. The St. Regis New York – flagship luxury on 55th Street.
  3. The Peninsula New York – Fifth Avenue rooftop and spa.
  4. Four Seasons Hotel New York Downtown – near World Trade Center.
  5. Park Hyatt New York – Carnegie Hall area.
  6. The Langham, New York, Fifth Avenue – spacious rooms and suites.
  7. The Ritz-Carlton New York, Central Park – park views.
  8. Baccarat Hotel New York – design and fine dining by MoMA.
  9. Mandarin Oriental, New York – Columbus Circle and skyline views.
  10. The Carlyle, A Rosewood Hotel – Upper East Side classic.

10 Best Parks in New York City

Signature green spaces with official pages.

  1. Central Park – lawns, reservoirs, and landmarks.
  2. The High Line – elevated park and art.
  3. Bryant Park – Midtown events and winter rink.
  4. Brooklyn Bridge Park – waterfront paths and piers.
  5. Prospect Park – meadows and lake in Brooklyn.
  6. Hudson River Park – piers and bike path on the West Side.
  7. Washington Square Park – arch, fountain, and music.
  8. Flushing Meadows Corona Park – Unisphere and museums.
  9. Governors Island – seasonal park with views of the Harbor.
  10. The Battery – gardens and ferries at the tip of Manhattan.

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