What International Home Sellers Should Know When Selling in the Washington, D.C. Metro Area
The Washington, D.C. metro area attracts thousands of international homeowners — from embassy staff and World Bank employees to foreign investors and expatriates. When it’s time to sell, though, non-U.S. owners face unique tax rules and regulations that can drastically affect their proceeds. If you’re a foreign seller or non-resident planning to sell property in D.C., Maryland, or Virginia, here are five key things to know before listing your home — including one of the most important factors: the FIRPTA tax.
1️⃣ FIRPTA Tax: Understand It Before You List
The Foreign Investment in Real Property Tax Act (FIRPTA) is the single most important law for international sellers. Under FIRPTA, the buyer must withhold up to 15% of the gross sale price at closing and send it to the IRS as a prepayment for potential U.S. taxes owed.
- Applies to non-U.S. citizens or non-resident aliens.
- Possible exemptions or reductions if the buyer will live in the property and the price is under $300,000.
- Sellers can request a Withholding Certificate (Form 8288-B) to lower or eliminate the 15% withholding.
- You’ll still need to file a U.S. tax return (Form 1040-NR) to finalize the refund or payment.
Pro Tip: FIRPTA planning should start before listing. Work with a real estate agent and CPA who understand international transactions to avoid having large sums withheld unnecessarily.
2️⃣ Know the Local Rules in D.C., Maryland, and Virginia
The D.C. metro region covers three jurisdictions — each with distinct seller laws and disclosures.
- Washington, D.C. – Requires a detailed Seller’s Disclosure Statement and a condo/co-op resale package.
- Maryland – Requires a Property Disclosure or Disclaimer form plus possible county-level addenda (radon, well/septic, etc.).
- Virginia – Operates on a “buyer beware” principle, but still requires disclosure of known material defects and HOA documents.
International sellers should also note that Maryland and D.C. have their own withholding taxes for out-of-state owners, which can combine with FIRPTA. A local agent familiar with cross-border sales ensures every legal requirement and form is handled correctly.
3️⃣ Timing and Market Strategy
The D.C. region’s real estate market moves year-round thanks to global institutions, embassies, and government employment — but timing still matters.
- Spring and fall: peak seasons with strong buyer competition.
- Winter: fewer listings but motivated relocation buyers.
For sellers abroad, strong digital marketing and presentation are non-negotiable. Use professional photography, drone tours, and staging to stand out. Buyers searching from abroad often make offers based on what they see online — your digital impression is your first showing.
4️⃣ Plan Ahead for Taxes, Fees, and Net Proceeds
Selling as a foreign owner involves more than just FIRPTA. Expect:
- Real estate commissions
- Title, attorney, and escrow fees
- Transfer and recordation taxes
- HOA/condo resale fees
Combined with FIRPTA and state withholdings, these can total 8–10% of the sale price if not planned carefully. Ask your agent for a Seller Net Sheet to project your net proceeds — crucial if you plan to repatriate funds or reinvest internationally.
5️⃣ Choose a Real Estate Agent Experienced in International Sales
Not all real estate agents understand international tax laws or FIRPTA filings. Choose one who does.
An experienced agent will:
- Coordinate with CPAs and title companies for FIRPTA compliance.
- Manage your sale remotely if you’re abroad.
- Negotiate strong terms with buyers aware of FIRPTA timelines.
- Ensure you’re protected at every stage — from listing to closing.
At TEAM CRUZ with eXp Realty, we specialize in helping international homeowners sell confidently across Washington, D.C., Maryland, and Northern Virginia. From global investors to embassy staff, our team ensures every sale is handled with precision and care.