Buying Real Estate In Miami? Ask If Seller Is A Foreign Investor!

Miami is a very international city with lots of foreign investors.  If you are buying property here, you need to make sure to ask if the seller is a foreign investor or you could be on the hook for money owed to the IRS.

Under FIRPTA, Foreign Investment in Real Property Tax Act, there is a mandatory 10% withoholding of contract sales price at closing for all foreign sellers of real estate.  It is the BUYER’S responsibility to make sure the 10% is withheld EVEN IF THEY ARE WORKING WITH AN ATTORNEY &/OR TITLE COMPANY.  The withholdings must be remitted to the IRS within 20 days of sale along with a special tax return.

There are exceptions to the withholding that your Realtor, title company or attorney can walk you through, but you first must ask the question.

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Jennifer Wollmann

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