Helping US Realtors Manage British Clients Buying US Real Estate: Tax, Legal & FIRPTA Guidance (2025 Edition)
TAX • CROSS-BORDER • 2025 Summary: British buyers of US property face dual-jurisdiction tax exposure — the IRS taxes the US sale, and HMRC taxes the worldwide gain. US Realtors need cross-border planning support to avoid FIRPTA withholding traps, double taxation, and legal liability risks. IRS requires 15% FIRPTA withholding on property sales by non-US persons Buying via an LLC or C-Corp helps shield personal wealth from lawsuits HMRC taxes foreign property income and gains — with treaty relief possible Context: Who This Applies To This guidance is for US-based Realtors representing British clients purchasing or selling US real estate. These clients are typically: UK investors diversifying into Florida, Texas, or Arizona rentals British expats relocating to the US for work or retirement Dual-citizens managing homes in both the UK and US Why Legal Structure Matters In the US, litigation is common. Realtors advising foreign buyers mus...