How much is withheld when a foreign owner sells?

Generally 15 percent of the gross sale price under FIRPTA, with reduced or no withholding in some cases, such as certain lower-priced homes the buyer will occupy. A tax adviser confirms what applies to your sale.

Can I get the withholding back?

Yes, any amount above the tax actually owed, by filing a U.S. tax return after the sale. You can also apply to the IRS before closing for a certificate that reduces the withholding.

Do I need to be in Florida to close?

No. Documents are signed remotely as the title company requires, often with a notary or at a U.S. consulate, and the proceeds are wired to you.

What Should Foreign Owners Know Before Selling U.S. Real Estate?

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

Published October 9, 2026

The Short Answer

A foreign seller can sell Florida property exactly as a domestic seller does, with one large difference at closing: under FIRPTA the buyer must generally withhold a percentage of the sale price and send it to the IRS, and the seller recovers any excess by filing an American tax return. The withholding can be reduced or avoided in some cases by applying to the IRS before closing, and how the property is owned (personally, through an entity or a trust) changes the tax picture. Plan the sale with a tax adviser who handles non-resident sellers before you list.

FIRPTA Withholding at Closing

The Foreign Investment in Real Property Tax Act requires the buyer, through the closing agent, to withhold a share of the gross sale price when the seller is a foreign person, and to remit it to the IRS. The statutory rate is 15 percent of the price in most cases, with lower withholding or an exemption for some lower-priced homes the buyer will live in. The withholding is not the tax; it is a deposit against it. Your tax adviser confirms the rate and the exceptions for your sale.

Reducing the Withholding Before Closing

When the tax actually owed on the gain will be less than the withholding, the seller can apply to the IRS for a withholding certificate before closing, and the closing agent can hold the funds until it is issued. The application takes time, so it has to start when the contract is signed, not the week of closing. You will need a U.S. taxpayer identification number if you do not already have one.

The Return After the Sale

The following year the seller files a U.S. non-resident return reporting the sale, the gain and the withholding, and receives a refund of any excess. Keeping the purchase documents, improvement receipts and closing statements makes the gain calculation straightforward. Your home country may tax the sale too, often with a credit for U.S. tax paid; your adviser coordinates the two.

Entities, Trusts and Estates

Property held through a U.S. or foreign company, a trust or an estate has its own rules for withholding and tax, and the sale documents have to match the owner of record exactly. If the owner has died, Florida probate or ancillary administration may be needed before the property can be sold. Have your attorney confirm who has authority to sign and what the title company will require.

Selling From Abroad

The listing, showings, offers and closing can all run with you overseas: documents are signed remotely with a notary or at a U.S. consulate as the title company requires, and the proceeds are wired to your account after closing. Allow time for apostilles and international wire procedures, and plan the currency conversion with your bank.

Pricing and Marketing

None of this changes what the home is worth. It is priced from the closed sales that match it and marketed to the full market, as any BreakThru listing is. What changes is the planning: the withholding, the certificate application, the signing logistics and the proceeds, all of which we coordinate with your tax adviser, your attorney and the title company from the day you list.

Talk It Through With a Broker

Every sale is its own set of numbers. Request a free valuation built from the closed sales that match your home, or read the market figures for your county on BreakThru Realty Research.

What should a foreign owner know before selling: Questions

What should foreign owners know before selling U.S. real estate?: A foreign seller can sell Florida property exactly as a domestic seller does, with one large difference at closing: under FIRPTA the buyer must generally withhold a percentage of the sale price and send it to the IRS, and the seller recovers any excess by filing an American tax return. The withholding can be reduced or avoided in some cases by applying to the IRS before closing, and how the property is owned (personally, through an entity or a trust) changes the tax picture. Plan the sale with a tax adviser who handles non-resident sellers before you list.
How much is withheld when a foreign owner sells?: Generally 15 percent of the gross sale price under FIRPTA, with reduced or no withholding in some cases, such as certain lower-priced homes the buyer will occupy. A tax adviser confirms what applies to your sale.
Can I get the withholding back?: Yes, any amount above the tax actually owed, by filing a U.S. tax return after the sale. You can also apply to the IRS before closing for a certificate that reduces the withholding.
Do I need to be in Florida to close?: No. Documents are signed remotely as the title company requires, often with a notary or at a U.S. consulate, and the proceeds are wired to you.