When a Foreigner Sells a Home in the US
FIRPTA = Foreign Investment in Real Property Tax Act amount of tax is 15% that must be witheld at closing unless the buyer is going to occupy the property more than 50% of the time over 2 12 month periods and signs the FIRPTA agreeing that The IRS requires the Seller and the buyer to have a US Federal taxpayer identification number (TIN) The seller can apply for a Withholding Certificate which can reduce the amount A transferor that applies for a withholding certificate must notify the transferee in writing that the certificate has been applied for on the day of or the day prior to the transfer. A withholding certificate may be issued due to: A determination by the IRS that reduced withholding is appropriate because either: The amount that must be withheld would be more than the transferor's maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax, The exemption from U.S. tax of all gain realized by the transferor, or An agreemen...