Investing In Real Estate In The United States as an NRA? Know FIRPTA!
Photo by Sam Divita: https://www.pexels.com/photo/tawas-point-lighthouse-at-tawas-beach-road-east- tawas-michigan-united-states-13618548/ A few weeks ago, I had frantic messages from a non-US person who wanted to know what she needed to do stop the Title Company from withholding taxes on the sale of her Florida property. I knew she was talking about taxes being withheld under FIRPTA. If this is something you did not know or had only heard about, it will come as a huge surprise as a nonresident individual who is trying to sell a real property in the U.S and are not aware of these rules, that you may owe tax to the U.S government even if you are not making any money on the sale. Generally, capital gains earned by nonresident individuals are not subject to U.S tax. In order to get around that, the FIRPTA taxes sale of the U.S. real estate by nonresident persons. Hence it is important to understand FIRPTA rules especially if you are thinking of investing in the U.S real estate ma
