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:
HARPTA – Withholding Tax on Sales of Hawaii Real Property by Nonresident Persons | Department of Taxation
Sherry Daniels Realtor ®, Broker
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