Investments in US Real Property by Non-US Investors: Basic FIRPTA Rules | Practical Law

Investments in US Real Property by Non-US Investors: Basic FIRPTA Rules | Practical Law

This Note describes the basic aspects of the Foreign Investment in Real Property Tax Act (FIRPTA), which subjects foreigners investing in US real property to US taxation on gains realized on a sale or other disposition of a US real property interest. This Note addresses the types of property that are considered US real property interests, the types of transactions that subject non-US investors to tax under FIRPTA, and the withholding obligations of buyers that acquire US real property interests from foreign sellers.

Investments in US Real Property by Non-US Investors: Basic FIRPTA Rules

Practical Law Practice Note 4-520-5216 (Approx. 40 pages)

Investments in US Real Property by Non-US Investors: Basic FIRPTA Rules

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
This Note describes the basic aspects of the Foreign Investment in Real Property Tax Act (FIRPTA), which subjects foreigners investing in US real property to US taxation on gains realized on a sale or other disposition of a US real property interest. This Note addresses the types of property that are considered US real property interests, the types of transactions that subject non-US investors to tax under FIRPTA, and the withholding obligations of buyers that acquire US real property interests from foreign sellers.