How much FIRPTA withholding applies for foreign sellers on 30A?

Foreign sellers on 30A are generally subject to 15% FIRPTA withholding at closing, based on the gross sales price rather than their profit. Because many 30A properties sell above $1 million, the standard 15% rate often applies.

There are limited exceptions. If the buyer plans to use the home as a residence and the sale price is $300,000 or less, withholding may not be required. For buyer occupied purchases between $300,000 and $1 million, the rate may be reduced to 10%.

FIRPTA withholding is not always the seller’s final tax obligation. A foreign seller may be eligible for a reduced withholding certificate from the IRS or a refund after filing the appropriate U.S. tax return.

Brandon Zellers helps foreign sellers prepare early by coordinating with the closing team and tax professionals, so FIRPTA does not become a last minute surprise.