European seller thinking about selling a U.S. or Hawaii property? Before you focus on VAT, make sure you understand what may actually show up at the closing table.
In this video, Jason Wong, Principal Broker of Island Dragonfly, explains why VAT is usually not the main issue when selling U.S. real estate—and why foreign sellers should pay close attention to FIRPTA withholding, U.S. capital gains reporting, and possible home-country tax coordination.
Many overseas owners are surprised to learn that a U.S. real estate sale is not handled the same way as a European transaction. FIRPTA may require money to be withheld at closing. That withholding is not always the final tax bill; it may function more like a deposit toward the seller’s actual tax obligation. Depending on the seller’s situation, a U.S. nonresident tax return, capital gains calculation, ITIN application, tax treaty review, or foreign tax credit discussion may also be part of the process.
This is especially important for sellers in Europe, Asia, Canada, and other overseas markets who own Hawaii real estate but live outside the United States. Whether the property is a luxury home, condominium, investment property, vacation residence, commercial property, or inherited asset, the earlier you plan, the smoother the transaction can be.
As a Hawaii Principal Broker with residential, commercial, luxury, and international real estate experience, I help sellers think beyond the listing price. The goal is to protect your timeline, prepare your documents, coordinate with the right tax and legal professionals, and market your Hawaii property to the right buyers locally and globally.
This video is for educational purposes only and is not tax, legal, or accounting advice. Always consult your CPA, tax attorney, or qualified advisor before making tax decisions.
Ready to discuss selling your Hawaii property?
Jason Wong (PB) MBA
President & Principal Broker, Island Dragonfly, LLC
Website: https://jasonwong.us
Firm Website: https://islanddragonfly.com
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