FIRPTA is a federal law designed to make sure foreign parties who sell real estate in the United States don’t avoid paying income taxes.  Hawaii has a similar law called HARPTA which is a withholding tax on a sale of property in Hawaii by a nonresident. 

  • Under FIRPTA, buyers of real estate owned by foreign parties must withhold 15% of the purchase price and send to the IRS.

  • Under HARPTA, buyers of Hawaii real estate owned by nonresidents must withhold and pay to the State of Hawaii 7.25% of the purchase price.

For more information please visit:

FIRPTA 

www.irs.gov/individuals/international-taxpayers/firpta-withholding  

HARPTA

HARPTA – Withholding Tax on Sales of Hawaii Real Property by Nonresident Persons | Department of Taxation 

FRIPTA/HARPTA