FIRPTA Withholding Calculator

Determine your immediate liquidity exposure under the Foreign Investment in Real Property Tax Act.

Gross Sale Price (USD)

FIRPTA is calculated on the gross amount realized, not the net gain.

Ownership Structure

Direct Ownership (Individual or Foreign Corporation) US Corporate Blocker (C-Corp)

Estimated Withholding at Closing

Required Withholding (15%) $750,000

This amount must be remitted by the buyer to the IRS within 20 days of closing. You must file a US tax return to claim any refund if the actual tax liability is lower.

Enable JavaScript for the interactive calculator. The standard FIRPTA withholding rate for direct foreign ownership is 15% of the gross sale price.

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Understanding the Calculation

The 15% withholding is a deposit against your final tax liability, not necessarily the final tax itself. However, because it is calculated on the gross sale price, it often far exceeds the actual tax owed on the net capital gain.

Scenario	Amount
Purchase Price	$4,000,000
Sale Price	$5,000,000
FIRPTA Withheld (15% of Sale)	$750,000
Actual Gain	$1,000,000

Notice how the withholding ($750k) consumes 75% of the actual profit, severely limiting liquidity to redeploy capital while waiting for an IRS refund.

Learn how Corporate Blockers prevent this