Where is your investment property located?

France
France
UK
UK
USA
USA
Spain
Spain
Ireland
Ireland


Filing Deadline

USA Tax Deadline June 15th


Property Ownership in the USA

Tax on Disposal of U.S. Property

Capital Gains Tax

  • If the property is owned for more than one year, then the US Capital Gains rates will be 8% or up to 15% for larger gains. (The gain includes the recaptured depreciation allowance described above).
  • Non-resident individuals are subject to tax by the Foreign Investors in Real Property Tax Act (FIRPTA) on the sale of property located in the U.S. Therefore, under the Act, when you sell property in the US, because you are non-resident, the buyer is required to withhold 10% of the sales price and remit it to the IRS. (A refund may be obtained if this amount exceeds the actual liability).
  • One of the most common exceptions to FIRPTA withholding is that the transferee (purchaser/buyer) is not required to withhold tax in a situation in which the purchaser/buyer purchases real estate for use as his home and the purchase price is not more than $300,000.
  • The Irish rate of CGT is 25% and again, as an Irish resident you will be liable to CGT on your worldwide gains. However, as Ireland has a double tax treaty with the U.S. you should be entitled to a credit for the CGT paid in the U.S.

Filing Deadlines

The tax returns for non-resident property owners in the U.S. (Form 1040NR) must be submitted by 15 June in the year following the year of assessment.


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