FIRPTA is an IRS withholding requirement, not a tax in itself. When a non-US person sells US real estate, the buyer is obligated to withhold 15% of the gross sale price and remit it to the IRS. You claim it back on a US tax return when the actual gain is computed — but that's a cash flow hit of six figures on a $1M sale. File a Form 8288-B withholding certificate in advance with a realistic estimate of the actual tax, and the withholding can be reduced. Exemptions exist for primary residences sold for under $300,000 to a buyer who will use it as such.
Regulations
FIRPTA Withholding Demystified: What Foreign Sellers Actually Pay
Fifteen percent of gross proceeds withheld at closing — unless you qualify for an exception or file a withholding certificate. The IRS rules for non-US persons selling US real estate, how the certificate process shortens the clock, and the refund math.
RegulationsApril 10, 202611 min