What is FIRPTA?

The Foreign Investment in U.S. Real Property Tax Act of 1980

Empowered by the Debt Reduction Act of 1984 and modified by the Path Act in 2015, the Foreign Investment in Real Property Tax Act requires all Buyers of USA real property sold by Foreign Sellers to withhold 15% (with some exemptions)  of the full sale price from the Foreign Seller's proceeds and remit that money to the US Treasury Internal Revenue Service (IRS). The Foreign Seller may then seek a refund and have 3 years to do so, after which the prospect of a refund expires due to a non-negotiable statute of limitations caveat.

FIRTA created to insure IRS receives more than the potential tax on every foreign seller real estate sale of property in the USA