Blog > FIRPTA Condo Sales in Florida: Withholding, Exemptions and Getting Your Money Back
FIRPTA Condo Sales in Florida: Withholding, Exemptions and Getting Your Money Back
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✓ Reviewed by Julia Ray, Broker and Owner, Raydiant Realty · Florida broker license BK3433857 · Reviewed October 21, 2026 · Our research process
Key takeaway: If the seller is a foreign person for U.S. tax purposes, the buyer must generally withhold 15% of the price at closing under FIRPTA, which is $41,914.50 on a $279,430 Hallandale Beach condo, often more than the seller's entire gain. The rate drops to 10% or zero when an individual buyer will live in the unit and the price is $1,000,000 or less, or $300,000 or less. If withholding will exceed your likely tax, apply for a withholding certificate on Form 8288-B before closing and get a taxpayer identification number early.
Who this guide is for: You own a Hallandale Beach condo, you're a nonresident alien or a foreign entity for U.S. tax purposes, and you want to know how much will be held back at closing and how to get it back; or you're buying from such a seller.
| At a glance | |
|---|---|
| Law | Foreign Investment in Real Property Tax Act (FIRPTA), administered by the IRS |
| Standard withholding | 15% of the amount realized |
| Residence, $300,000 or less | No withholding if an individual buyer will live there |
| Residence, up to $1,000,000 | 10% withholding |
| Who withholds | Usually the buyer, through the closing agent |
| Deadline to pay the IRS | 20th day after the transfer (Form 8288) |
| Withholding certificate | Form 8288-B; IRS normally acts by the 90th day after a complete application |
| Hallandale Beach typical value | $279,430, Zillow's typical home value, September 2026 |
FIRPTA Condo withholding on a Hallandale Beach sale
On a Hallandale Beach condo at the typical value, FIRPTA withholding is often larger than the seller's whole gain. Zillow's typical home value for the city was $279,430 in September 2026, down from a peak of $336,081 in March 2024, so an owner who bought near that peak may have little or no gain. The standard 15% withholding on that price is $41,914.50, held back whether the gain is large or small.
That turns FIRPTA into a timing decision. You either ask the IRS to cut the withholding before closing or wait for a refund after filing a U.S. return. The wider ownership rules are in our guide to Florida condo law, and the full sale process in how to sell a condo in Hallandale Beach.
Who is considered a foreign person for a FIRPTA Condo sale?
The test is your U.S. tax status, not where you were born or where you live. The IRS defines a foreign person as a nonresident alien individual, or a foreign corporation that hasn't elected to be treated as domestic, plus foreign partnerships, trusts and estates.
Resident aliens and U.S. citizens
A resident alien isn't a foreign person for FIRPTA, and neither is a U.S. citizen living abroad. If you're either, you can give the closing agent a non-foreign certification and no withholding applies.
Condos owned through a company or trust
If the unit is titled to a foreign corporation, partnership, trust or estate, the entity is the seller and FIRPTA applies to it. Check how the deed is titled before you list.
FIRPTA Condo withholding rates: 0%, 10% and 15%
Withholding is figured on the amount realized: the cash paid, the value of any other property, and any of your debts the buyer takes over.
Residence exception: $300,000 or less
No withholding is required if the amount realized is $300,000 or less and the buyer is an individual who, or whose family, plans to live in the unit at least half the days it's used in each of the first two 12-month periods. Vacant days don't count.
Reduced 10% rate up to $1,000,000
If the buyer acquires the unit as a residence on the same test and the amount realized is over $300,000 but not more than $1,000,000, withholding drops to 10%.
Standard 15% rate
Every other sale by a foreign person is withheld at 15%, including any sale to an investor, a company, or a buyer who won't live there, and any sale over $1,000,000.
FIRPTA Condo example: a Hallandale Beach unit at $279,430
Assume a foreign-person seller bought the unit for $250,000, a hypothetical figure, and sells at Zillow's typical value of $279,430.
| Buyer | Rate | Withheld at closing |
|---|---|---|
| Individual who will live there | 0% | $0 |
| Investor or company | 15% | $41,914.50 |
| Residence buyer at a hypothetical $450,000 | 10% | $45,000 |
| Investor at a hypothetical $450,000 | 15% | $67,500 |
The seller's gain before costs is $29,430, so the $41,914.50 withheld from an investor sale is more than the whole gain, and the tax on that gain must be smaller still. Without a withholding certificate, the difference sits with the IRS until the seller files a U.S. return. Who the buyer is changes your net proceeds more than the price does, so ask about the buyer's plans before you accept an offer.
Reducing FIRPTA Condo withholding with Form 8288-B
A withholding certificate lets the IRS set withholding at your expected tax instead of the flat rate. The seller or the buyer can apply on Form 8288-B.
When to file Form 8288-B
File before or on the closing date. If the application is pending at closing, the agent still withholds the full amount but doesn't have to send it to the IRS until 20 days after the IRS mails the certificate or a denial. The IRS normally acts by the 90th day after a complete application.
Getting a taxpayer identification number
Without a U.S. TIN, the IRS won't stamp your copy of Form 8288-A. A nonresident alien eligible for an ITIN can attach Form 8288-B to Form W-7 to apply for both.
Listing the closing agent for IRS mail
The IRS notes that a seller living overseas can name the escrow or closing company to receive correspondence about the application, so letters don't stall in international mail.
FIRPTA Condo closing steps for the buyer and the closing agent
Non-foreign certification or residence statement
The closing agent asks every seller to certify tax status. A seller who isn't a foreign person signs a non-foreign certification with name, TIN and address. A buyer relying on the residence exception tells the closing agent in writing that they'll live there.
Withholding at the closing table
The buyer is usually the withholding agent, and the closing agent takes the amount out of the seller's proceeds on the settlement statement.
Form 8288 and 8288-A within 20 days
The withholding and Form 8288 are due to the IRS by the 20th day after the transfer, with a Form 8288-A for each seller.
Stamped Form 8288-A to the seller
The IRS stamps copy B of Form 8288-A and sends it to the seller as proof of the payment.
FIRPTA Condo timeline before you list
The IRS steps run on their own clock, so start early and work backward from your target closing date.
- Three months or more before listing: confirm your U.S. tax status with a CPA and check how the deed is titled. If you need an ITIN, plan to file Form W-7 with your Form 8288-B.
- When you list: tell the closing agent the seller is a foreign person, and ask it to be named on Form 8288-B to receive IRS letters.
- When offers arrive: ask whether the buyer is an individual who will live in the unit. At $300,000 or less that buyer means no withholding; up to $1,000,000 it means 10% instead of 15%.
- Before closing: file Form 8288-B if your expected tax is below the withholding. The agent then holds the funds until the IRS answers.
- After closing: keep the settlement statement and the stamped Form 8288-A, and file a U.S. return for the year of sale.
A sale where the buyer's lender needs the building reviewed can take longer than a cash sale, so build the IRS's 90-day window around the contract dates rather than inside them.
What a FIRPTA Condo sale means for the buyer
The buyer is liable if withholding is skipped when it was due. That includes a buyer who claims the residence exception and then doesn't live there, unless circumstances changed in a way they couldn't have foreseen. If you're buying from a seller whose status is unclear, get the certification or the withholding settled before you sign closing documents. For buying in the city generally, our Hallandale Beach condo buying guide walks through costs and buildings.
Getting FIRPTA Condo withholding back: the U.S. tax return
Withholding isn't the tax. To get credit, you file a U.S. income tax return for the year of sale and attach the stamped Form 8288-A. If you have no TIN, the IRS won't stamp the form; you'll need to attach closing documents and a statement with your TIN once you have one. Report the sale, claim the withholding, and any excess comes back as a refund.
Plan for the property tax side too, because a non-homestead owner's bill is capped differently; see how Broward taxes a second-home condo. Closing lines such as doc stamps are covered in our breakdown of Florida closing costs.
FIRPTA Condo mistakes foreign sellers make
- Waiting until closing week to apply for a TIN. Without one, your refund waits.
- Not asking how the buyer will use the unit. A residence buyer can cut withholding to 10% or zero.
- Assuming the deed holder is you. If a foreign company holds title, it's the seller.
- Not filing the U.S. return. Withholding is credited only when you file.
If you'd like, I can introduce your closing agent to the timeline early so the FIRPTA paperwork is ready when you list.
Reader check: This page explains IRS FIRPTA rules as published on October 21, 2026, not tax or legal advice. Confirm your status, rate and filing with a CPA who handles FIRPTA and a Florida real estate attorney.
FIRPTA Condo FAQs
What does FIRPTA mean for a buyer?
When the seller is a foreign person, the buyer is usually the withholding agent and must hold back 15% of the amount realized, or 10% for a residence buyer up to $1,000,000, and send it to the IRS with Form 8288 within 20 days. If withholding is required and skipped, the buyer can be liable for it. The closing agent normally handles the paperwork.
What is FIRPTA and how do I avoid it?
FIRPTA is the federal law that makes buyers withhold tax when a foreign person sells U.S. real estate. You can't avoid the tax on a gain, but withholding is excused or reduced in set cases: you aren't a foreign person and sign a non-foreign certification, the price is $300,000 or less to a residence buyer, or the IRS issues a withholding certificate.
Who is exempt from FIRPTA?
Sellers who aren't foreign persons, including U.S. citizens and resident aliens, are outside FIRPTA withholding once they certify their status. Withholding is also excused on a sale of $300,000 or less to an individual who will live in the property, when the IRS issues a withholding certificate, and in other listed cases such as a zero amount realized.
Who is considered a foreign person for FIRPTA?
A nonresident alien individual, a foreign corporation that hasn't elected to be treated as domestic under section 897(i), and a foreign partnership, trust or estate. A resident alien isn't a foreign person. Status depends on U.S. tax residency, so check it with a tax professional before you list.
How long does it take to get FIRPTA money back?
With a withholding certificate, the IRS normally acts by the 90th day after a complete Form 8288-B application, and the agent pays only the amount the certificate allows. Without one, you get the excess back as a refund after filing a U.S. tax return for the year of sale with the stamped Form 8288-A, so the wait runs past that filing.
Does FIRPTA apply to a $300,000 condo?
Withholding is not required if the amount realized is $300,000 or less and the buyer is an individual who plans to live in the condo at least half the days it's used in each of the first two years. If the buyer is an investor or a company, the 15% rate applies at any price. The seller still owes U.S. tax on any gain.
Reviewed by Julia Ray, Broker and Owner, Raydiant Realty, October 21, 2026. This guide explains how the rules work; it is not legal, tax or insurance advice.