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FIRPTA for Mexican Sellers: Selling Your US Property
FIRPTA for Mexican sellers: 15% on gross sale price. TN holders meeting primary residence test may exclude up to $250K in gains. SAT also taxes the same gain — US-Mexico DTA coordinates. Own Luxury Homes® 12-Point Agent Integrity Audit™.
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FIRPTA for Mexican Sellers: Selling Your US Property
15%
FIRPTA withholding for non-TN-holder Mexican sellers — reduced by Form 8288-B certificate to actual tax owed
$250,000
Capital gains exclusion for TN holders who used the property as primary residence for 2 of last 5 years
DTA
US-Mexico Double Taxation Agreement coordinates US and Mexican capital gains tax on the same sale
SAT
Mexican sellers must declare the US property sale gain on their SAT annual return
Tax rules in both the US and your home country change. Consult a US tax attorney and a cross-border specialist.
FIRPTA treatment for Mexican sellers depends on their US status: TN visa holders who used the property as a primary residence may qualify for the Section 121 exclusion — up to $250,000 in gains excluded. Mexico-based non-residents selling US investment property face the standard 15% FIRPTA withholding, with the Form 8288-B certificate as the key tool for reducing it at closing.
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TN Holder Primary Residence: The Exclusion
TN visa holders who purchased their US home as a primary residence and lived there for at least 2 of the last 5 years may qualify for the Section 121 exclusion: (1) Up to $250,000 in capital gains excluded (single filer). (2) Up to $500,000 for married filing jointly. (3) Even with the exclusion, the buyer must receive the FIRPTA affidavit confirming the seller is not a foreign person — or withhold. A TN holder is a non-resident alien — not a US citizen — so they are still technically a foreign person under FIRPTA. The Form 8288-B certificate can authorize zero withholding if the entire gain is excluded under Section 121.
Non-Resident Mexican Seller: Standard FIRPTA
Mexico-based sellers (no US employment) follow standard FIRPTA: 15% of gross sale price withheld at closing. Form 8288-B filed at listing reduces this to actual tax. At the Texas price tier ($300K–$700K), the certificate recovers meaningful amounts at closing. Example: $450,000 Texas home, $120,000 gain. FIRPTA: $67,500. Actual tax: $18,000. Certificate saves $49,500 at closing. Full FIRPTA guide: FIRPTA complete guide.
Mexican SAT and the Same Gain
Mexican tax residents who sell US property report the gain on their SAT declaration: (1) The US-Mexico DTA coordinates taxation. US capital gains tax paid is credited against Mexican tax on the same income. (2) SAT reporting deadline: April 30 (standard Mexican declaration deadline). (3) The gain in Mexican pesos may differ from the USD gain due to MXN/USD rate movements between purchase and sale dates. (4) Work with a Mexican contador (accountant) with international transaction experience.
Ryan Brown, Principal Broker & CEO Own Luxury Homes®
"The TN holder who has lived in their San Antonio home for 3 years can exclude up to $250,000 in gains when they sell. That can mean zero FIRPTA withholding with the right Form 8288-B certificate filed at listing. The specialist who knows to ask “how long have you lived here?” at the listing conversation is the one who saves their client $40,000 in cash flow at closing."
Related Resources
Guides: TN Visa & Mortgage — FIRPTA Guide — Find an Agent
Frequently Asked Questions
Do TN visa holders pay FIRPTA when selling their US home?
Potentially zero if they qualify for the primary residence exclusion (Section 121). Must have used the property as a primary residence for 2 of the last 5 years. Up to $250,000 in gains excluded ($500,000 married). Form 8288-B certificate authorizes reduced withholding.
What is FIRPTA for Mexican sellers who are not TN visa holders?
15% withheld from gross sale price at closing. Form 8288-B certificate, filed at listing, reduces this to actual tax owed.
Does Mexico also tax the gain when a Mexican citizen sells US property?
Yes. SAT declaration required. US-Mexico DTA: US tax paid is credited against Mexican tax. Work with a Mexican contador for the SAT calculation.
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)