# 119-hr-3588: Real Estate Reciprocity Act

119-hr-3588, Real Estate Reciprocity Act, is a 119th Congress bill sponsored by Rep. Harrigan, Pat [R-NC-10] (R-NC); status introduced; PRIA reads it as touching household money (as of 2026-08-06).

- Canonical: https://policyrisk.com/legislation/119-hr-3588
- As of: 2026-08-06
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-3588
- Congress: 119
- Title: Real Estate Reciprocity Act
- Status: introduced
- Introduced: 2025-05-23
- Sponsor: Rep. Harrigan, Pat [R-NC-10] (R-NC)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-08-06

## Summary

**A 50% tax on certain foreign purchases of U.S. real estate** is the bill's main tool to limit ownership by persons tied to specified foreign countries. It would also expand IRS reporting on foreign owners and require the State Department to list countries that bar U.S. citizens from owning property. - Disqualified foreign buyers would face a 50% tax on the purchase price. "Disqualified" includes citizens or entities tied to listed countries and entities with 10% or more control, with narrow exceptions for diplomats, asylees, and some publicly traded firms. - Foreign owners and presumptively disqualified persons would face a broader IRS reporting regime. The bill expands Section 6039C and creates a new Section 6050AA that requires returns, statements, designated reporters, and affidavits to show non-disqualification. - The State Department would report to the Treasury within 60 days of enactment and then annually to identify countries that prohibit U.S. citizens from buying real estate, and those listings would define which countries are "disqualified."

## Provisions PRIA read

- 50% tax on some foreign property purchases: cost, high. If enacted, some foreign buyers would face a new tax when they buy U.S. real estate. The tax would be 50% of the price paid, or a lower prorated percent if disqualified owners hold under 50% control. A “disqualified person” would include citizens and entities tied to countries on a State Department…
- More IRS reporting for foreign property investors: cost, low. If enacted, more foreign investors who own U.S. real estate but did not run a U.S. trade or business that year would have to file a return. The bill would remove the old dollar threshold and use a broad “any” requirement. This would apply to returns for tax years that begin after enactment.
- New real estate closing reports and penalties: cost, low. If enacted, the person who handles the closing (like a title company, lawyer, or seller) would have to file a report when the buyer does not give a sworn affidavit that they are not disqualified. The report would include the buyer’s name, address, taxpayer ID, the property, and the amount paid. The…

## Related bills

- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-4669: FEMA Act of 2025
- 119-hr-6976: Duty Status Reform Act
- 119-hr-2725: Affordable Housing Credit Improvement Act of 2025
- 119-hr-1229: United States-Israel Defense Partnership Act of 2025
- 119-hr-1656: PLUS for Veterans Act of 2025

## Sources
- [119-hr-3588 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/3588)

## Related
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-4669: FEMA Act of 2025](https://policyrisk.com/legislation/119-hr-4669)
- [119-hr-6976: Duty Status Reform Act](https://policyrisk.com/legislation/119-hr-6976)
- [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725)
- [119-hr-1229: United States-Israel Defense Partnership Act of 2025](https://policyrisk.com/legislation/119-hr-1229)
- [119-hr-1656: PLUS for Veterans Act of 2025](https://policyrisk.com/legislation/119-hr-1656)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-3588 (as of 2026-08-06).