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Indians and NRIs Selling Their US Property: The Complete Tax Guide
Indians and NRIs selling US property: FIRPTA 15% on NRIs from India. H-1B holders with substantial presence may be US tax residents exempt from FIRPTA. Repatriation: NRO account, $1M per year limit with Form 15CA/15CB CA certificate. Own Luxury Homes® International Buyer Verification Standard™ NRI seller specialists.
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Indians and NRIs Selling Their US Property: The Complete Tax Guide
15%
FIRPTA withholding for NRIs selling US property from India
Exempt
H-1B holders who meet substantial presence test are US tax residents: FIRPTA exempt
$1M/Year
NRO account repatriation limit per Indian financial year without additional filings
15CA/15CB
CA certificate required for repatriation above USD $1M from Indian US property sale
NRIs selling US property face two tax systems simultaneously: US FIRPTA and capital gains, and Indian tax on foreign asset gains. Understanding which FIRPTA exemptions apply, and how to repatriate proceeds via NRO accounts, is the knowledge that makes the sale go smoothly.
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FIRPTA: Who Owes It and Who Is Exempt
When an NRI or India-domiciled Indian national sells US property, the buyer withholds 15% of the gross sale price as FIRPTA. For Indians already in the US on a work visa with a Social Security number and US tax residency (substantial presence met), FIRPTA may not apply: FIRPTA applies to 'foreign persons,' and substantial presence test qualifiers are treated as US tax residents and are exempt. Confirm tax residency status with a US tax advisor before closing.
| Seller Profile | FIRPTA Status | Withholding |
|---|---|---|
| NRI selling from India (no US visa) | Foreign person | 15% of gross sale price |
| H-1B holder, substantial presence met | US tax resident | FIRPTA exempt |
| H-1B holder, substantial presence NOT met | Foreign person | 15% applies |
| Green card holder | US person | FIRPTA exempt |
| EB-5 conditional green card holder | US person | FIRPTA exempt |
Repatriating Sale Proceeds to India: NRO Accounts and Form 15CA/15CB
When an NRI sells US property and wants to bring proceeds back to India, the funds flow into India as a foreign inward remittance. Key points: (1) There is no limit on bringing legitimate foreign earnings into India. (2) The proceeds must be deposited in an NRO or NRE account before any transfer to India rupee accounts. (3) NRO accounts allow repatriation of up to USD $1,000,000 per financial year with CA certificate (Form 15CA/15CB). (4) Capital gains tax in India on foreign property sales: Indian tax law taxes NRIs on capital gains from the sale of foreign property as if it were Indian property. The US-India tax treaty provides a foreign tax credit for US tax paid. See: FIRPTA for NRI and Indian Sellers.
The 15CA/15CB Requirement
To repatriate property sale proceeds from the US to India above USD $1,000,000 per year, the NRI must obtain a Form 15CB certificate from a Chartered Accountant confirming that all applicable taxes have been paid or provided for in both countries. This must be filed online (Form 15CA) before the funds are transferred.
Indian Tax on US Property Sale Gains
India taxes NRIs on capital gains from the sale of foreign property under the same rules as Indian property. Long-term gains (property held more than 24 months) are taxed at 20% with indexation. The US-India tax treaty provides a foreign tax credit: US capital gains tax paid is credited against Indian tax on the same gain. This prevents double taxation but requires careful coordination between a US CPA and an Indian CA.
Ryan Brown, Principal Broker & CEO — Own Luxury Homes®
“The NRI who sells a US condo and wants to bring the money to India faces two questions: US tax and Indian repatriation. FIRPTA withholding on the US side, Form 15CA/15CB on the Indian side. Both are solvable with the right professionals involved early. I connect every NRI seller with a US CPA and an Indian CA before the listing goes live.”
Own Luxury Homes® — Indian and NRI buyer specialists in every major US market. International Buyer Verification Standard™. No dual agency. Contact us now ›
Frequently Asked Questions
Is FIRPTA withholding the same for all Indian sellers of US property?
No. NRIs who are foreign persons face 15% FIRPTA. H-1B holders who meet the substantial presence test are US tax residents and are exempt. Green card and EB-5 holders are also exempt. Confirm your status before closing.
How does an NRI bring US property sale proceeds back to India?
Proceeds go to an NRO (Non-Resident Ordinary) account in India. Repatriation of up to USD $1,000,000 per Indian financial year requires Form 15CB from a CA and Form 15CA filed online. Above that limit, additional RBI approval may be needed.
Does India tax the gain from selling US property?
Yes. India taxes NRIs on capital gains from foreign property sales. The US-India tax treaty provides a foreign tax credit for US tax paid, preventing double taxation.
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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)