[Orlando, Florida] As foreigners continue to invest in the United States it is imperative to understand the process and laws involved to insure the investor from potential ramifications.

The IRS ( Internal Revenue Service) requires that foreign investor must deduct and withhold a tax equal to 10%  of the total sale price of the property acquired by the foreign investor.

Penalties apply to a foreign investors who fails to withhold, the investor can file Form 8288 with the IRS, or pay the required withholding within 20 days of the sale.

There are a few common exceptions to the IRS withholding law such as :

The foreign investor acquires the property for use as a home and the sales price is not more than $300,000.

And

The foreign investor or their  family must have definite plans to reside at the property for at least 50% of the number of days the property is used by any person during each of the first two 12-month periods following the date of transfer.