The city line decides the tax
Los Angeles is a patchwork of separate cities, and transfer taxes follow the boundary. Inside the City of Los Angeles there is a base transfer tax of 0.45%; since Measure ULA, sales above a threshold carry a further 4%, and sales at or above a second threshold 5.5%. For transactions closing after 30 June 2026 the thresholds are $5,400,000 and $10,900,000, adjusted each year for inflation (City of Los Angeles Office of Finance, Measure ULA). The county adds its documentary transfer tax of 55 cents per $500 (LA County Registrar-Recorder).
Malibu and Beverly Hills are separate cities, so the City of LA tax and ULA do not follow a buyer there; check the city's own transfer tax before relying on either figure.
What it costs to hold
Under Proposition 13, the property tax rate is limited to 1% plus whatever is needed for local voter-approved bonds; property is reassessed to market value on a change of ownership or new construction, and the base-year value can otherwise rise by no more than 2% a year (California State Board of Equalization, Publication 29). A buyer's tax is therefore set by what they pay — and a long-held neighbour may pay a fraction of it.
Building on the coast
The whole of the City of Malibu lies within the California coastal zone. Development there — which includes changes in the intensity of use of land or water, not only building — generally may not begin until a coastal development permit has been issued, and Malibu issues them under the Local Coastal Program certified in 2002, with appeals to the Coastal Commission (California Coastal Commission; City of Malibu). If the plan for a beach house includes rebuilding, extending or adding a seawall, the permit history is part of the price.
Selling
California requires withholding on many sales: the standard rate under the Form 593 rules is 3⅓%, with exemptions such as a price of $100,000 or less or a qualifying principal residence (Franchise Tax Board, Form 593 instructions). A foreign seller also faces federal FIRPTA withholding, generally 15% of the amount realised (IRS), and a non-resident alien's estate must file a US estate-tax return above $60,000 of US assets (IRS).
Residency
Property does not confer the right to live in the US; EB-5 investment immigration is a separate programme with its own thresholds (USCIS).
Before you fall for the view
Hillside and canyon homes in Los Angeles carry wildfire exposure, and insurance availability and cost have become part of every purchase decision. Get a written insurance quote, a geological report for hillside lots and the permit history before your offer is accepted.
