Foreign Nationals with US Real Estate
As a foreign person owning U.S. real estate (or a buyer from such a
person), have you sought advice on how to alleviate the withholding
taxes imposed on any sale?
A common theme in tax rules applying to foreign nationals is that
one size does not fit all. As a result of provisions under the Foreign
Investment in Real Property Tax Act 1980 (FIRPTA), foreign nationals
investing in U.S. real estate are often surprised to learn that apparently
non-taxable gains can still be subject to tax withholding. Specific steps
may still need to be taken to mitigate the effects of these provisions if
any tax exemption is available.
We can collaborate with your real estate attorney as an important part
of the closing of any real estate transaction in order to ensure that you
do not run afoul of these provisions.