Austin is a diverse, international city, so many real estate transactions here involve someone who lives abroad, buying a home or selling one they own. In this video I explain FIRPTA, the Foreign Investment in Real Property Tax Act, a federal rule that catches people off guard. When a foreign person sells U.S. property, generally fifteen percent of the total sale price (not the profit) is withheld and sent to the IRS at closing, and surprisingly, it’s the buyer who is responsible for making sure that happens; if it doesn’t, the IRS can pursue the buyer for the amount plus penalties. I’ll also explain why planning ahead matters so much: foreign owners who work with the right team, rent the property, keep clean records, and pay taxes properly can preserve valuable options when they sell, including tools to defer taxes, while those who don’t can face a large, avoidable bill. This is absolutely not a reason to avoid international transactions, they’re wonderful opportunities. It simply means having an agent who flags these issues early and surrounds you with the right attorneys, accountants, and title professionals. If you’re buying from an international seller or own a home here and live abroad, let’s talk early. (This is general information, not tax or legal advice; consult a qualified professional about your situation.)