Foreign sellers, buyers, and settlement professionals run into the same FIRPTA issues in real transactions. Here’s what actually matters:

What is FIRPTA?
It requires withholding when a foreign person sells US real estate.
Not a separate tax, a prepayment tied to a future return.

Who counts as foreign?
Nonresident individuals and foreign entities.
Immigration status does not equal tax residency.

How much must be withheld?
15% of the gross sales price.
Not profit. Not proceeds. The contract price.

Are exemptions allowed?
Yes, but they are narrow and documentation driven.
Assumptions do not protect anyone.

Who is legally responsible?
The buyer.
If missed, liability stays with the buyer.

After closing?
The seller still files a US return.
Withholding is credited against actual tax.
Many sellers later receive refunds.

Most FIRPTA problems do not come from complex law.