What Is Form 8288-B and How Do I Reduce FIRPTA Withholding Before Selling U.S. Property?
Form 8288-B (Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests) lets foreign sellers request a reduced FIRPTA withholding rate before the property sale closes. Without it, the buyer must withhold 15% of the gross sale price and remit it to the IRS, even if the seller’s actual tax is much lower (IRS: About Form 8288-B).
- Default FIRPTA withholding: 15% of the gross sale price (not the gain)
- Form 8288-B purpose: request a withholding certificate, reducing the rate to the actual expected tax
- Timing: must be filed before closing; the IRS issues the certificate within 90 days
| Feature | Without 8288-B | With 8288-B |
| Withholding rate | 15% of gross sale price | Reduced to estimated tax on gain |
| Example: $500K sale, $50K gain | $75,000 withheld | ~$10,000-$15,000 withheld |
| Refund process | File 1040-NR, wait 6-12 months | Minimal or no refund needed |
Who files Form 8288-B:
- Former U.S. citizens selling U.S. real estate after renouncing
- Nonresident aliens selling U.S. property
- Foreign corporations disposing of U.S. real property interests
- Green card holders who surrendered and still own U.S. property
How to apply:
- File Form 8288-B with the IRS at least 90 days before the expected closing date
- Include: estimated gain calculation, basis documentation, expected tax liability
- The buyer holds the withholding in escrow until the IRS issues the certificate or 20 days pass after closing (whichever comes first)
- If approved, the withholding certificate specifies the reduced amount; closing proceeds accordingly
- If denied or not received in time, the full 15% is withheld, and the seller claims the refund on Form 1040-NR
For more on FIRPTA, see our Form 8288 guide.
Last updated on April 29, 2026
