Selling property in the United States as a non-U.S. resident comes with specific tax requirements. One of the most important is understanding whether you need an ITIN when completing the sale.
At Nolly.com, we help global investors navigate the process and avoid delays with FIRPTA withholding and IRS filings. Here’s what you need to know.
What Is FIRPTA?
FIRPTA stands for the Foreign Investment in Real Property Tax Act. Under FIRPTA, when a non-U.S. resident sells U.S. real estate, the buyer must withhold a portion of the sale price and send it to the IRS.
This withholding is usually 15 percent of the sale price — not the profit.
Why an ITIN Is Needed
An ITIN is required for filing the forms related to FIRPTA withholding. Without an ITIN, you cannot:
- File Form 8288-B to request reduced withholding
- File your 1040NR tax return
- Claim refunds
- Report the sale officially to the IRS
If you attempt to complete the sale without an ITIN, the process becomes slower and more expensive.
When You Should Apply for an ITIN
You should apply for an ITIN before or during the sale process. Buying agents, title companies, and escrow firms often require the number before closing.
Applying early avoids delays in receiving sale proceeds and filing the required forms.
How FIRPTA Withholding Works
Here’s a simple example:
- You sell a property for $400,000 as a non-U.S. resident.
- FIRPTA requires 15 percent withholding.
- This means the IRS holds $60,000 until you file your tax return.
- If your actual tax owed is lower, you get the difference back — but only if you have an ITIN.
Using Form 8288-B to Reduce Withholding
- If your profit is smaller than the withholding amount, you can request a reduced withholding through Form 8288-B.
- Many sellers qualify for reduced withholding because:
- They made small profits
- They had high expenses
- They owned the property for many years
But the IRS will not process Form 8288-B unless you have an ITIN.
What Happens If You Wait Too Long
If you sell without an ITIN:
- Your closing process may be delayed
- Your funds can be held longer
- You may pay more withholding than necessary
- Refunds will take longer
Getting an ITIN early prevents all of this.
Why Work with Nolly.com
- As Certified Acceptance Agents, we verify identity on a video call and help clients worldwide apply for ITINs safely.
- We also assist with:
- FIRPTA withholding guidance
- Form 8288-B
- 1040NR filing
- Refund claims
We ensure your paperwork is complete and correct.
Final Thoughts
If you plan to sell U.S. property as a non-U.S. resident, you need an ITIN to stay compliant and claim the correct refund.
Start your ITIN application with Nolly.com today. We’ll guide you through the entire process so your sale goes smoothly and your tax filings are accurate.
Published November 28, 2025. General information, not tax advice. Nolly Services Inc is a private company and is not part of the IRS.
