Guide · Updated:
FIRPTA: selling as a foreigner
When a foreign person sells U.S. property, the buyer generally withholds 15% of the price and sends it to the IRS; there are exceptions and you can request a lower withholding.
Sources: IRS, FIRPTA withholding · IRS, exceptions from FIRPTA withholding · checked Sep 30, 2026
Ask for a shortlist and documentsYour message includes this guide topic.What is FIRPTA and who withholds?
It is the federal law that makes the buyer withhold part of the price when the seller is foreign. As a rule, 15%.
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According to the IRS, a person buying U.S. real property from a foreign person, as well as certain agents and settlement officers, must withhold 15% of the amount realized. In most cases the buyer is the withholding agent and must find out whether the seller is foreign. The withholding is not the final tax: it is a prepayment. The actual tax is worked out on your return, and any excess withheld is claimed back.
Source: IRS, FIRPTA withholding · checked Sep 30, 2026
Are there cases with no withholding?
Yes. If the price is $300,000 or less and the buyer will use it as a residence, generally nothing is withheld.
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The IRS explains that withholding is not required when the buyer acquires the property as a residence and the price is not more than $300,000. The buyer or a family member must have definite plans to live there at least 50% of the days the property is used during each of the first two years. Between $300,000 and $1 million, the IRS provides a reduced withholding under the same residence condition. Notification requirements still apply.
Sources: IRS, exceptions from FIRPTA withholding · IRS, FIRPTA withholding · checked Sep 30, 2026
Can less than 15% be withheld?
Yes, by asking the IRS for a withholding certificate with Form 8288-B before closing.
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The buyer or the seller can file Form 8288-B to request a certificate that reduces or eliminates withholding, for example when the actual gain is far below 15% of the price. It runs on IRS timelines, so prepare it with your CPA before listing the property, not the week of closing. Carolina coordinates with the title company so the withholding is planned into the closing statement.
Source: IRS, FIRPTA withholding · checked Sep 30, 2026
This summarises what the law says and what the cited sources publish; it is not legal or tax advice. Before you decide, confirm it with a Florida-licensed attorney or CPA.
Written by Carolina Suárez Rivas, Florida-licensed real estate agent (SL3336060).