Non Foreign Affidavit Template for England and Wales

A Non Foreign Affidavit is a crucial legal document that certifies you are not a foreign person for U.S. tax purposes, allowing you to avoid federal tax withholding requirements when selling real estate. Under the Foreign Investment in Real Property Tax Act (FIRPTA), buyers must withhold a percentage of the purchase price when acquiring property from foreign sellers, but this affidavit exempts qualifying U.S. sellers from this requirement.

When do you need this document?

You need a Non Foreign Affidavit whenever you're selling U.S. real property and want to avoid FIRPTA withholding. This includes residential homes, commercial buildings, vacant land, and any interest in real property located within the United States. The document is typically required at closing and must be provided to the buyer or their representative. Without this affidavit, buyers are legally obligated to withhold taxes regardless of your actual citizenship status, which can significantly delay your proceeds from the sale.

Key legal considerations

The affidavit must contain specific elements to be legally valid under IRC Section 1445. You must provide your full legal name, current address, and either your Social Security Number or Employer Identification Number. The property being sold must be accurately described using its legal description. Most importantly, you must make a sworn declaration under penalty of perjury that you are not a foreign person as defined by the Internal Revenue Code. False statements can result in criminal penalties, civil fines, and personal liability for any unpaid taxes. The document must be notarized and signed before a qualified notary public to be legally binding.

Legal requirements in United States

Under Treasury Regulations § 1.1445-2, your Non Foreign Affidavit must meet strict federal standards to qualify for FIRPTA exemption. You must be either a U.S. citizen or a resident alien as defined by IRC Section 7701(b). The affidavit must be delivered to the transferee at or before the time of transfer, and the buyer must retain the document for their records. Some states have additional requirements for real estate transactions that may affect the format or content of your affidavit. The IRS may also require you to provide additional documentation if your non-foreign status is questioned. Remember that providing false information constitutes perjury under federal law and can result in severe penalties including criminal prosecution.