FIRPTA Withholding 

Under current federal law, if a foreign person sells U.S. real property, the buyer is obligated to withhold 15% of the gross sales price and remit this to the IRS, except those wherein the sales price is between $300,001 and $1,000,000 and the buyer acquires the property for use as a principal residence.  Under this circumstance, a reduced withholding of 10% will apply. 

Sales price of $300,000 or less and buyer acquires as principal residence:
No Withholding

Sales price between $300,001-$1,000,000 and buyer acquires as principal residence:
10% Withholding

All transactions—any sales price and buyer NOT acquiring as principal residence:
15% Withholding

In short, if a foreign person is selling a U.S. real property interest, these parameters apply UNLESS THERE IS A STATUTORY EXCEPTION FROM WITHHOLDING.

No withholding is required under the following circumstances:

• Buyer acquires for use a principal residence and sales price is less than $300,000

• Seller provides Non-Foreign Affidavit

• Seller provides a Withholding Certificate from the IRS which excuses the withholding

• The amount realized by the seller is zero

• The property is acquired by the United States or a political subdivision thereof