When the seller is a foreign person, federal law requires the buyer to withhold from the proceeds. This is federal, so it applies in Georgia exactly as anywhere.
The reduced rates apply only where the buyer acquires the property for use as a residence and the price is within the bands below. That is a factual test about the buyer's intended use, not an election.
Estimate for planning only. Actual figures depend on your contract, county and lender. Contact The Closing Firm at (770) 506-7765 for an exact quote.
A non-resident alien individual, or a foreign corporation, partnership, trust or estate. A US citizen is not, and neither is a lawful permanent resident — a green card holder — or someone who meets the substantial presence test. The determination is about tax residency, not about where someone happens to live.
The withholding obligation falls on the buyer. If the seller is a foreign person and nothing is withheld, the IRS can look to the buyer for the money. This is one of the reasons the seller information sheet asks about citizenship, and why it is better answered at the start of a file than the week of closing.
Thirteen calculators, built on the current Georgia statutes.
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