Foreign Investment in US Real Estate
Real Estate Tax Considerations For Non-US Residents
Previous to the enactment of the Foreign Investment in Real Property Tax Act (FIRPTA) in 1980, foreign sellers of U.S. real estate were not taxed on the capital gains realized on the sale of real estate situated in the U.S., unless such real estate was used in a U.S. trade or business. Under FIRPTA, foreign sellers of U.S. real estate were subjected to U.S. capital gains tax on the profit realized on the sale effective for dispositions after June 18, 1980. The withholding requirements under FIRPTA became effective for dispositions after December 31, 1984.
The withholding rules under FIRPTA can be very confusing and have changed over the years. The links provided below attempt to address some of the most common situations encountered in complying with the requirements under FIRPTA.
Frequently Asked Questions About FIRPTA
U.S. Income Tax Reporting On Rental Income for Non-Residents
Other Taxes Imposed On The Rental Of Florida Real Estate
Alternatives for Nonresidents To Consider in Taking Title to US Property