Own a U.S. rental as a foreigner? The IRS default is 30% of your gross rent.
Not 30% of your profit — 30% of every dollar of rent, with no deduction for mortgage interest, property tax, insurance, repairs, or depreciation. One election under Section 871(d) flips you to tax on net profit at normal graduated rates instead — often close to nothing. We make the election, stop the withholding with a W-8ECI, secure your ITIN as an active IRS Certifying Acceptance Agent, and file your 1040-NR. Fixed annual fee.
Se habla Español · Se fala Português. Fixed-fee engagements — you always know the price before work begins.
The default rules are built to overtax you
Left alone, a nonresident landlord pays tax on gross rent, loses every deduction, and can lose the fix by waiting too long. Each of these is avoidable.
30% of gross — no deductions
By default your rent is FDAP income: a flat 30% on the gross, with nothing deductible. A property grossing $50,000 that barely breaks even after the mortgage still faces $15,000 of U.S. tax.
Your manager must withhold it
Your property manager or tenant is the IRS "withholding agent" and is personally liable to take 30% out of every rent payment — unless you hand them a valid W-8ECI. Most simply withhold to protect themselves.
File before the IRS comes looking
Under Section 874(a), a nonresident who doesn't file a timely 1040-NR — generally within 16 months of the deadline — can be denied every deduction and taxed on 30% of gross. A narrow good-faith exception exists, but it usually disappears once the IRS contacts you first.
Same property. One election. A different tax bill.
$15,000
30% × $50,000 gross rent. No deductions for mortgage, taxes, insurance, repairs, or depreciation. Withheld from your payments before you ever see them.
Often ~$0–$2,000
Tax on net profit at graduated rates after mortgage interest, property tax, insurance, management, and depreciation. Many owners owe little or nothing.
from $1,350/yr
A fixed annual fee that is a rounding error next to the tax the election saves — and it protects you from the far larger cost of getting it wrong.
For nonresident owners of U.S. rental property
One condo or a small portfolio, held personally or through an LLC — if a non-U.S. person collects U.S. rent, these rules apply, and the election is almost always worth making.
Tell us about your property- A non-U.S. citizen or nonresident earning rent from U.S. residential or commercial property
- Seeing 30% withheld from your rent — or worried your manager is about to start
- Never filed a U.S. return for the rental, or unsure whether you were supposed to
- Without a U.S. ITIN yet — or holding one that has expired
- Holding through a single-member LLC, partnership, or foreign entity
- Renting short-term (Airbnb/VRBO) and unsure how that changes your filing
Four steps from 30%-of-gross to tax on net
No jargon, no scope creep, one fixed annual fee.
ITIN in-house
As an active Certifying Acceptance Agent, we issue your ITIN directly — usually without mailing your passport to the IRS.
Make the 871(d) election
We attach the election statement to your return, treating your rent as effectively connected — net-basis, graduated rates.
Stop the withholding
We prepare the W-8ECI for your property manager or tenant so future rent is paid to you in full, not 70% of it.
File & keep you compliant
We file your 1040-NR each year on a net basis, track depreciation and carryovers, and keep your election alive.
Annual foreign-landlord packages
A one-time $750 Setup & Election package covers the 871(d) election, the W-8ECI for your manager, and your depreciation setup in year one — with your ITIN added via our CAA at $350 when bundled. After that, a flat annual fee keeps you filed and compliant. Most single-property owners choose Essentials.
Essentials
- Form 1040-NR with Schedule E, on a net basis
- Section 871(d) election maintained
- W-8ECI prepared for your manager/tenant
- Depreciation & carryover tracking
- Annual summary + one planning email
Standard
- Everything in Essentials, up to 3 properties
- Quarterly estimated-payment guidance
- One state nonresident return
- FIRPTA-exposure memo for when you sell
- Second annual check-in call
Portfolio
- Everything in Standard, 4–6 properties
- Multi-owner 1040-NR coordination
- Multi-state returns as needed
- Entity return coordination (LLC/partnership)
- Annual planning meeting
The specialty, the ITIN authority, the languages
Foreign-landlord compliance sits exactly where our practice lives: cross-border tax, done on fixed fees, in your language.
You're the withholding agent. We take that risk off your desk.
If you manage property for a foreign owner, the IRS holds you liable for the 30% withholding unless a valid W-8ECI is on file. Refer your foreign owners to us: we get them compliant, put the W-8ECI in your hands, and you stop carrying a liability that was never yours to carry.
Refer an owner / set up a channel- We handle the owner's ITIN, election, and filings end-to-end
- You receive a valid W-8ECI to keep in your files
- Clear, fixed pricing you can quote to owners with confidence
- Trilingual service for your Spanish- and Portuguese-speaking clients
- A responsive cross-border practice, not a seasonal filing mill
Foreign-landlord tax, answered
Do I really owe 30% of my gross rent?
By default, yes. A nonresident's U.S. rental income is treated as FDAP income — a flat 30% on the gross, with no deductions for mortgage interest, property tax, insurance, repairs, management, or depreciation. The Section 871(d) election moves you to net-basis taxation at graduated rates, which is almost always dramatically lower.
What exactly is the Section 871(d) election?
It's an election to treat your U.S. rental income as "effectively connected" with a U.S. trade or business. You then report rent and all related expenses on Form 1040-NR and pay tax on your net profit at normal graduated rates. It's made by attaching a statement to your return, only has to be made once, and stays in effect until you revoke it.
How do I stop the 30% coming out of each rent payment?
You give your property manager or tenant a Form W-8ECI. That certifies your rent is effectively connected income and relieves them, as the withholding agent, from taking 30% out of each payment. We prepare it for you.
I've never filed for my rental. Is it too late to fix this?
There's a real deadline. Under Section 874(a), if you don't file a timely 1040-NR — generally within 16 months of the due date — the IRS can disallow your deductions and tax 30% of your gross rent. A narrow good-faith exception can still apply if you come forward on your own — but once the IRS contacts you first, it usually doesn't. If you're behind, acting before they reach out is what protects you: we'll map the fastest compliant path and quote clean catch-up filing.
Do I need an ITIN, and can you get it for me?
Almost always yes, and yes. You need a U.S. taxpayer ID to file the 1040-NR and to submit a valid W-8ECI. As an active IRS Certifying Acceptance Agent, we authenticate your documents and file your ITIN application directly — often without you mailing your passport to the IRS.
What happens with tax when I eventually sell?
A separate set of rules (FIRPTA) applies at sale — the buyer generally withholds 15% of the gross price, and there's depreciation to reconcile. It's very much worth coordinating now, and it's a service we provide. See our FIRPTA page.
Does my country's tax treaty change any of this?
Usually not for the rental income itself — most treaties still let the U.S. tax income from U.S. real estate, which is why the 871(d) election matters more than treaty status. Treaties can affect other pieces (and estate-tax exposure, where a nonresident's U.S.-situs exemption is only $60,000). We'll flag anything relevant to your country.
Do you only work with owners in Texas?
No. We're based in Houston and file for foreign owners with property in all 50 states, preparing whichever state's nonresident return applies.
Stop overpaying on gross. Start being taxed on net.
Book a free strategy session. We'll confirm whether the 871(d) election is right for you, estimate the tax it saves, and quote one fixed annual fee for the whole job.