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Tax Requirement for Foreign (non-California) Property Owners

All tax matters various by each individual’s portfolio, please consult your tax adviser for your specific situation. The following is a general rule of thumb.

IRSFor out-of-State property owners, IRS require quarterly FTB tax payment of 7% withholding -along with 592-V and 592, Annually owner is also responsible to fill-out 592-B.

For Foreign owners, IRS require form W-8ECI on file for each foreign owner if not, owners are required to send in 30% of gross rents as withholding. Annually Manage should issue form 1042-S in place of a 1099.

When property is sold, the buyer must deduct and withhold a tax on the total amount realized by the foreign person on the disposition. The rate of withholding generally is 15%.

All tax matters various by each individual’s portfolio, please consult your tax adviser for your specific situation.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.