Is it possible for a international buyer to buy from an international seller?

Joel22

Earning My Ears
Joined
Jul 11, 2022
Is it possible for a international buyer to buy from an international seller?
 

RoseGold

DIS Veteran
Joined
Jan 21, 2020
Of course. But I probably wouldn't do this because of all the IRS rules. That's a question for the title company.

I'm not sure I would buy at all internationally and subject myself to the IRS.
 

Jimmy Geppetto

DIS Veteran
Joined
Sep 4, 2021
Yes its doable. FIRPTA requires the International seller to submit 15% withholding tax (of the purchase price) to the IRS. In the event the Seller does not do this, the IRS reserves the right to collect that tax from the owner of the deed (ie. the new owner). Because of this, the IRS requires an ITIN for both the buyer and seller, thus opening up a file with the IRS. This is why many people shy away from it, or even recommend against it. However, if you use a good FIRPTA specialist and a title company that does their job effectively, there should be no issue so long that the FIRPTA tax is submitted properly.

Edit: I am not a tax specialist and buyers should always seek competent advice from a tax expert - not some "Jimmy" from disboards.
 

Joel22

Earning My Ears
Joined
Jul 11, 2022
Yes its doable. FIRPTA requires the International seller to submit 15% withholding tax (of the purchase price) to the IRS. In the event the Seller does not do this, the IRS reserves the right to collect that tax from the owner of the deed (ie. the new owner). Because of this, the IRS requires an ITIN for both the buyer and seller, thus opening up a file with the IRS. This is why many people shy away from it, or even recommend against it. However, if you use a good FIRPTA specialist and a title company that does their job effectively, there should be no issue so long that the FIRPTA tax is submitted properly.

Edit: I am not a tax specialist and buyers should always seek competent advice from a tax expert - not some "Jimmy" from disboards.
hmm thank you. So if the seller just didn't pay the 15%, the IRS could come to me for the money? That's kinda worrying. I did speak with a registered tax agent who can get me the ITIN number and she has worked on DVC sales before.
 

Cyberc1978

DIS Veteran
Joined
Jul 19, 2016
hmm thank you. So if the seller just didn't pay the 15%, the IRS could come to me for the money? That's kinda worrying. I did speak with a registered tax agent who can get me the ITIN number and she has worked on DVC sales before.
I’m international and have bought from another international member. I was required to get an ITIN and the title company ensured that the 15% was withheld so there is no need to worry. Just ask the broker and escrow agent to ensure that the 15% is paid/withheld.
 

Wakey

DIS Veteran
Joined
Dec 22, 2015
Buying from an International seller no matter who you are, has a massive advantage in that they don’t seem to ROFR it. All the main brokers and title companies deal with loads of international sales and hold back the 15% from funds in, so should be no risk for the buyer.
 

Jimmy Geppetto

DIS Veteran
Joined
Sep 4, 2021
Buying from an International seller no matter who you are, has a massive advantage in that they don’t seem to ROFR it. All the main brokers and title companies deal with loads of international sales and hold back the 15% from funds in, so should be no risk for the buyer.
I wouldn’t say there is no risk, but the risk is not as great as some make it out to be.

There is risk the title company doesn’t remit the FIRPTA properly causing headache for the buyer months down the road.

There could also be tax implications for some international buyers who now have an ITIN with the USA. As Canadian those issues are non-existent or very small but that may not be the case for all countries.
 

Cyberc1978

DIS Veteran
Joined
Jul 19, 2016
I wouldn’t say there is no risk, but the risk is not as great as some make it out to be.

There is risk the title company doesn’t remit the FIRPTA properly causing headache for the buyer months down the road.

There could also be tax implications for some international buyers who now have an ITIN with the USA. As Canadian those issues are non-existent or very small but that may not be the case for all countries.
IMO There should be no tax implications for international buyers if the 15% have been paid.
 

Minniesgal

DIS Veteran
Joined
Mar 29, 2013
I’m an international seller and when we closed the title company used a tax specialist to file all the correct paperwork at closure so there was no tax die at closing so no liability on anyone. It can be done
 










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