As many of our real estate transactions are with foreign customers, I wanted to make you aware of recent Changes to FIRPTA.
Changes to the Foreign Investment in Real Property Act (FIRPTA) will take effect beginning February 16, 2016. Foreign nationals selling real estate property in the United States will see withholdings of 15% of sale proceeds (instead of 10%), if the amount realized (typically the selling price) exceeds 1 Million Dollars.
For Sales under 1 Million Dollars and over $300,000, AND the buyer will occupy the property as a residence, the withholding remains at 10 percent. For Sales under $300,000 AND the buyer will occupy the property as a residence, no funds need to be withheld.
These new changes were signed into law at the end of…