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:
Sherry Daniels Realtor ®, Broker
808-938-0062 / firstname.lastname@example.org