Taxes for non residents

4 Replies

Hello guys,

Can anyone tell what taxes are due when a non-resident sells US property?

Thanks for any feedback

At the closing money will be withheld under the Firpta rule. I think it is 10%. Once Your taxes are settled you get back what is left. 

You can avoid witholding tax if you obtain an ITIN from the IRS prior to the sale and can give it to the withholding agent. You will still be liable to pay capital gain tax.

see for more info on us tax for non resident aliens

Hi Sebastien, 

If a foreigner has a single member LLC with an EIN, do you still need an ITIN to legally avoid the witholding tax?


@ Guillermo Beraun

Sebastien Hitier

Sebastien Hitier

There will often be a tax withholding called FIRPTA. FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests. It requires a buyer of real estate to withhold generally 15% of the gross sales price (subject to certain exceptions and exclusions) and remit the funds to the Internal Revenue Service if the seller is a “foreign person.”

But realize this is just a withholding.  You will typically file a tax return and the withholding will be applied to anything that you owe.  Make sure to discuss with a CPA who is knowlegeble on these issues.

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