FIRPTA: Selling U.S. Property as a Foreign Owner
If you're a non-U.S. seller, the IRS requires a slice of your sale price withheld at closing. With the right paperwork filed at the right time, most sellers keep far more of their money up front. I coordinate it in English, Portuguese, or Spanish.
What FIRPTA Is
FIRPTA (the Foreign Investment in Real Property Tax Act) applies when a non-U.S. person sells U.S. real estate. The buyer is legally required to withhold a percentage of the gross sale price and send it to the IRS. Important: it's withheld on the full sale price, not on your profit, which is why it often feels far too high.
How Much Is Withheld
15% (Standard)
The default rate on the gross sale price. Applies to investment property, and to any sale over $1,000,000.
10% (Reduced)
When the buyer is an individual who will use the property as their residence and the price is between $300,001 and $1,000,000.
0% (Exempt)
When the buyer is an individual who will use the property as their residence and the price is $300,000 or less, and the buyer signs the required affidavit.
Why It Feels Like Too Much
FIRPTA withholding is a deposit against your final U.S. tax, not the tax itself. Because it's based on the gross price instead of your actual gain, the amount held is frequently much larger than what you'll truly owe. That difference is your money, tied up with the IRS until you file.
How We Reduce It (Withholding Certificate)
You can apply to the IRS before closing for a Withholding Certificate (Form 8288-B) so the amount held is based on your actual gain instead of the full price. Filed on time, the buyer can hold the funds in escrow while the IRS reviews, instead of sending the full amount in. This is the single most valuable step for protecting your cash flow, and it has to be set up before closing.
The Paperwork & Timeline
Forms 8288 and 8288-A: filed by the buyer, with payment, within 20 days of closing.
Form 8288-B: the seller's application to reduce withholding, filed before or at closing.
ITIN (Form W-7): foreign sellers need a U.S. tax ID number to file and claim a refund. Processing takes weeks, so start early.
Refund: file Form 1040-NR for the year of sale to reconcile and recover any excess withheld.
Where I Come In
I'm not your CPA or attorney, and FIRPTA is a tax matter, but most foreign sellers lose money simply because nobody flagged the certificate path in time. I coordinate your sale with the title company and your tax professional, keep the timeline on track, and make sure the FIRPTA steps happen before closing, not after. In English, Portuguese, or Spanish.
Frequently Asked Questions
Selling U.S. property as a foreign owner?
Let's set up the FIRPTA steps before closing, so you keep more of your proceeds.
This page is general information, not tax or legal advice. Hedilson "Eddy" Vieira is a licensed Florida real estate agent, not a tax advisor or attorney. FIRPTA outcomes depend on your specific situation. Always confirm with a qualified CPA or tax attorney. Figures reflect IRS rules current as of 2026.
Hedilson Vieira, P.A.
Dalton Wade Real Estate Group
FL License# 3103123 · NRDS# 277020865
