Starting on February 16, 2016 the FIRPTA regulations are changing.
Proceeds from the sale of real property owned by foreign nationals in some cases will now increase to 15% holdback rate of the gross proceeds of the sale.
If the sales price amount is $300,000.00 or less and the property will be the residence of the buyer, no monies need to be withheld or remitted to the IRS.
If the sales price exceeds $300,000.00 but does not exceed $1,000,000.00 and will be used by the buyer as a residence then the withholding rate is 10% on the full sales price.
If the sales price exceeds $1,000,000.00 then the withholding rate is NOW 15% on the sales price.