Property owned by a foreign mission in the United States and used for the purposes of the mission may be eligible for an exemption from real estate taxation, including both annual property taxes and recordation/transfer taxes.
The exemption does not include an exemption from payment for services, such as water and sewerage that are provided to a property. See, e.g., Vienna Convention on Diplomatic Relations (VCDR), Art. 23(1).
In addition, only those taxes that a foreign mission would otherwise legally be obligated to pay a taxing jurisdiction are included within the tax exemption. The exemption does not apply to foreign mission premises that are rented from an owner who is subject to real property taxes on the property. See, e.g., VCDR, Art. 23(2).
Diplomatic Missions
Premises of a Diplomatic Mission:
In accordance with the VCDR, foreign governments are entitled to exemption from real estate taxes on property owned by the foreign governments and used as “the premises of the mission,” defined as “buildings or parts of buildings, and the land ancillary thereto used for the purposes of the mission.” VCDR, Arts. 23(1) and 1(i). This exemption is subject to reciprocity. See VCDR, Art. 47(2).
Residence of the Head of a Diplomatic Mission (also known as Ambassador’s Residence or Chief of Mission’s Residence):
In accordance with the VCDR, foreign governments are entitled to exemption from real estate taxes on residences that are owned by such governments or the Chief of Mission and that are used for the purpose of housing the head of its diplomatic mission. VCDR, Arts. 23(1) and 1(i). This exemption is subject to reciprocity. See VCDR, Art. 47(2).
Bilateral Diplomatic Mission Staff Residence:
In accordance with customary international law and state practice under the VCDR, the residence of a member of a diplomatic mission’s staff (which includes individuals accredited by the Department of State as diplomatic agents, administrative and technical staff, or members of the diplomatic mission’s service staff) owned by the sending State is entitled to an exemption from real estate taxes, subject to reciprocity.
Delegation of the African Union Mission
In accordance with Executive Order 13444, dated September 12, 2007, the Delegation of the African Union Mission to the United States benefits from the privileges and immunities enjoyed by diplomatic missions accredited to the United States, including the provision for exemption from property tax in Article 23 of the Vienna Convention on Diplomatic Relations.
Consular Posts
Premises of a Consular Post:
The Vienna Convention on Consular Relations (VCCR), provides an exemption from real estate taxes on property owned by a foreign government used as the consular premises, defined as “buildings or parts of buildings, and the land ancillary thereto … used exclusively for the purposes of the consular post.” VCCR, Arts. 32(1) and 1(j).
Residence of the Career Head of a Consular Post:
The VCCR provides an exemption from real estate taxes on property owned by a foreign government or the Head of Post on residences used for the purpose of housing the head of its consular post. VCCR, Arts. 32(1) and 1(j).
Consular Staff Residence:
In accordance with the Determination of the Deputy Secretary of State on June 23, 2009, the residence of a member of the staff of a consular post (which includes individuals accredited by the Department of State as consular officers, consular employees, or members of the consular post’s service staff) owned by the sending State is entitled to an exemption from real estate taxes, subject to any terms and conditions specified by the Department of State’s Office of Foreign Missions. 74 Fed. Reg. 31788 (July 2, 2009).
Honorary Consular Post
Premises of an Honorary Consular Post:
The premises of a consular post headed by an honorary consular officer owned by the sending State is entitled to exemption from real estate taxes. VCCR, Art. 60.
Missions to the United Nations
Residence of United Nations Mission Staff:
In accordance with the Determination of the Deputy Secretary of State on June 23, 2009, property owned by a foreign government and used to house staff of permanent missions to the United Nations is exempt from real estate taxes, subject to any terms and conditions specified by the Department of State’s Office of Foreign Missions. 74 Fed. Reg. 31788 (July 2, 2009).
Missions to the Organization of American States
Residence of a Staff Member of a Mission to the Organization of American States:
In accordance with the Determination of the Deputy Secretary of State on June 23, 2009, property owned by a foreign government and used to house staff of missions to the Organization of American States is exempt from real estate taxes, subject to any terms and conditions specified by the Department of State’s Office of Foreign Missions. 74 Fed. Reg. 31788 (July 2, 2009).
