---
title: Foreign Investment in Real Property Tax Act (FIRPTA)
description: Foreign Investment in Real Property Tax Act (FIRPTA) is a United States tax law that imposes a tax on foreign persons disposing of United States real property interests.
---

[Realized 1031 Glossary of Terms ](https://www.realized1031.com/glossary)

# [Foreign Investment in Real Property Tax Act (FIRPTA)](https://www.realized1031.com/glossary/foreign-investment-in-real-property-tax-act-firpta)

 Written by [The Realized Team](https://www.realized1031.com/glossary/author/the-realized-team) | Jun 29, 2022 12:00:00 PM

Foreign Investment in Real Property Tax Act (FIRPTA) is a United States tax law that imposes a tax on foreign persons disposing of United States real property interests. To ensure tax collection from foreign taxpayers, FIRPTA requires buyers of U.S. real property interests to withhold 10% of the sales price and remit the withholding directly to the IRS.

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