Selling Your DVC
Membership as a
Non-U.S. Citizen?
What is FIRPTA and Why Does It Matter?
What is FIRPTA?
Content:
- FIRPTA stands for Foreign Investment in Real Property Tax Act. It’s a federal tax law that applies when a non-U.S. citizen sells U.S. property — including Disney Vacation Club (DVC) memberships.
- The IRS requires 15% of the gross sales price to be withheld from the seller and sent to the IRS. The law helps ensure that international sellers pay taxes owed on real estate transactions.
You might be impacted if:
- You’re not a U.S. citizen
- You don’t hold a green card
- You haven’t spent enough time in the U.S. to qualify as a tax resident
This 15% withholding is often more than what is actually owed in taxes. Sellers can apply for a refund of the difference.
Do I Need to Worry About FIRPTA?
Who Does FIRPTA Apply To?
Checklist-style Format:
FIRPTA affects you if:
- You do not hold a green card
- You haven’t lived in the U.S. long enough to be considered a resident for tax purposes
Reminder:
- The buyer is responsible for withholding and submitting the 15% to the IRS. If they fail to do so, they may face penalties — so confirming your residency status matters!
How to Avoid FIRPTA Withholding
Ways to Avoid FIRPTA Withholding
Content:
You may not have to deal with FIRPTA withholding if any of the following apply:
- You have a valid U.S. Social Security Number or an Individual Taxpayer Identification Number (ITIN)
- You plan to reinvest the proceeds into another U.S. property or business
- You made no profit on the sale
Need an ITIN?:
If you don’t have one, you can apply when submitting FIRPTA paperwork. But this can take time — we recommend contacting a FIRPTA specialist early to avoid delays in closing.
The IRS might refund part (or all) of the 15% if your actual tax owed is lower. You can apply for a refund after closing or submit early forms to request it sooner.
FIRPTA and DVC Resale: How It Works
Selling Your DVC Membership as a Non-U.S. Citizen
Content:
When you sell your Disney Vacation Club membership through DVC Sales, we’ll help you determine if FIRPTA applies.
If it does:
- Our title company will withhold the required 15% and send it to the IRS
- We’ll assist you (for a small additional fee) in working with a FIRPTA compliance expert to apply for a refund
- We’ll keep the process smooth so your sale isn’t delayed
Who Files What? Buyer vs. Seller Table
What Each Party Needs to Do Under FIRPTA
| Seller | Buyer | Seller Must Fill FIRPTA Forms | Buyer Must Provide |
|---|---|---|---|
| Non–US | Non–US | Yes | SSN or ITIN |
| Non–US | US | Yes | --- |
| US | Non–US | No | --- |
| US | US | No | --- |
Reminder:
Even if you’re the buyer, you’re responsible for making sure the withholding is handled correctly!
FIRPTA Refund Estimator
Estimate Your FIRPTA Refund
Intro Text:
Use the example below as a guide to see how much of the 15% you might be able to recover. For a personalized estimate, talk to a FIRPTA specialist.
| Buying | Selling | Buying | Selling | |
|---|---|---|---|---|
| Contract Price | ||||
| Real Estate Commission paid by the Seller | ||||
| Closing Costs paid when buying and selling | ||||
| Disney’s Estoppel Fee | ||||
| Certified FIRPTA agent fee | ||||
| Amount sent to the IRS (15% of the selling price) | ||||
| Net to Seller at Closing | ||||
| The income that the seller should expect to pay taxes on | ||||
| Tax payment due to IRS (assuming 20% rate) | ||||
| Estimated Refund | ||||
| Percent of FIRPTA withholding returned to the Seller |
Front End: DVC FIRPTA
