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Comprehensive US tax-filing service for non-resident landlords and property investors.

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How can I manage my non-resident US property tax responsibilities

How can I manage my non-resident US property tax responsibilities?

If you’re a non-resident earning rental income from property in the United States, it’s important to understand that you must file an annual US tax return to report this income and pay any tax due. 

At Property Tax International, we specialise in helping non-residents navigate their US property tax responsibilities through a simple, online tax filing service tailored specifically for international investors.

Our US tax solutions include: 

  • Preparation and filing of U.S. rental income tax returns 
  • Individual Taxpayer Identification Number (ITIN) applications 
  • US withholding tax amendment returns (tax rebate claims) 
  • US Capital Gains Tax (CGT) return filing 
  • Coordination with your local/resident country accountant 
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Our US rental income tax services and fees 

The fee for preparation of a state tax return is €100 (where needed). This fee covers a return for a single owner with one property. 

If you need help with your tax number or in registering for tax in the US, the fee for this service is €110 per person. 

  • All fees are inclusive of VAT. 
  • Prices are based on the provision of information in pre-agreed format – a surcharge of 20% may be applied for disorganized files. 
  • Prices are based on the provision of necessary backup documentation only – the inclusion of unnecessary documentation may result in the application of an additional charge. 

Discounts for multiple filings

Multiple years discount – 10%

This is available where returns for 2 or more tax years are required. This discount is applicable to the annual fees excluding any once-off fees and administrative fees and does not apply where other discounts/reductions have been granted.

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discounts for property tax returns

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USA rental income tax FAQs

  • Title insurance – this is a contractual obligation that protects against losses that occur when the title to a property is not free and clear of defects (e.g. liens, encumbrances, and defects that were unknown when the title policy was issued). The terms of the policy define what risks are covered and what risks are excluded from coverage. The title insurer will reimburse you for losses that are covered, up to the face amount of the policy, and any related legal expenses. This protection is effective as of the issue date of the policy and covers defects arising prior to your ownership. Title companies issue policies on all types of real and personal property.
  • Broker commissions – real estate transactions that involve a broker are usually subject to a commission that typically varies between 3% and 6% of the property purchase price; however, oftentimes the commission is incurred by the seller.
  • Green card test – A person is a resident for tax purposes if they are a lawful permanent resident of the United States at any time during the calendar year. This is known as the “green card” test.
  • Substantial presence test – A person will be considered a US resident for tax purposes if he meets the substantial presence test for the calendar year. To meet this test, they must be physically present in the United States on at least 31 days during the current year, and 183 days during the 3-year period that includes the current year and the 2 years immediately before that.

Non-residents who receive rental income from US-situated real property are generally taxed at 30% of the gross rental income. It is the tenant or the real estate management company (if there is one involved) that has a primary obligation to withhold the 30% tax before remitting the net amount to the nonresident landlord. A nonresident alien receiving rental income is not required to file an annual tax return for rental property to report the rental income as the 30% tax withheld satisfies the US tax liability. However, the US tax law permits a nonresident alien to make a special election as explained in the following section.

  • Advertising
  • Auto and travel
  • Cleaning & maintenance
    Insurance
  • Legal & professional fees
  • Management fees (letting agency fees)
  • Mortgage interests (exclude any capital element)
  • Repairs
  • Supplies
  • Property taxes
  • Utilities

In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income, but the tax rate for individuals is lower on long-term capital gains, which are defined as gains on assets that had been held for over one year before being sold. 

When a nonresident sells a property, the buyer retains 15% of the agreed sale price as a withholding tax which is paid over to the IRS to cover the sellers’ tax obligations. A tax return should be filed with the IRS to determine if an overpayment has been made and if a tax refund is subsequently due. 

Rental properties are subject to different capital tax rules compared to primary residences. A rental property is treated differently than your main home for capital gains taxes. When you sell it, you might owe two types of taxes. 

First, there’s a 25 % tax on the money you made from the depreciation you claimed earlier. 

Second, you may owe either 0, 15, or 20% in long-term capital gains taxes based on your income and how you file your taxes. 

If you’re thinking about selling a rental property you’ve had for less than a year, it’s a good idea to wait for at least 12 months. If you don’t, your profit will be taxed like regular income, and there’s no upper limit for short-term capital gains taxes, which could be as high as 37%

US gift tax applies when the property is transferred as a gift to a family member, friend, or associate. 

US estate tax may apply to somebody’s taxable estate at their death. The taxable estate is considered the gross estate less allowable deductions. 

In 2023, there are some important changes in the rules for gift and estate taxes that you should be aware of: 

The amount you can give each year without triggering gift taxes has gone up to $17,000 from $16,000. 

The total amount you can give over your lifetime without paying gift or estate taxes has also increased to $12.92 million, up from $12.06 million. 

US gift tax applies when property is transferred as a gift to a family member, friend, or associate. 

US estate tax may also apply to an individual’s taxable estate at the time of their death. The taxable estate is calculated as the gross estate minus allowable deductions. 

As of 2025, these are the thresholds that non-residents should be aware of: 

  • Annual gift tax exclusion: You can now give up to $18,000 per recipient in 2025 without triggering gift tax (increased from $17,000 in 2024). 
  • Lifetime gift and estate tax exemption: The exemption amount has risen to $13.61 million, up from $12.92 million in 2024. 

Depending on your local country’s laws, if you are a non–resident with rental income, you may have to declare your US rental income both in the US and on your annual tax return in your home country. 

However, double taxation agreements exist, to ensure that you will not be taxed twice on your income. 

You can contact our team of property tax professionals for further details regarding double taxation relief and/or filing tax returns for rental property. 

We can assist both US residents with rental property overseas who earn foreign rental income and nonresidents who have rental real estate in the US with property tax services.

Our property tax professionals will guide you through the process of preparing and filing all necessary US tax returns in addition to advising on your property tax obligations in your home country. 

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