The FIRPTA (Foreign Investment in Real Property Tax Act) law is a federal law that applies to the sale of real estate in the United States by foreign investors. Its goal is to tax the income of non-residents who sell real estate in the United States.

In Georgia, the FIRPTA law works similarly to the rest of the country. When a foreign investor sells real estate in the state of Georgia, the buyer must withhold 15% of the purchase price of the real estate. This withholding is a kind of guarantee against taxes that the Internal Revenue Service (IRS) could subsequently impose on the sale.

The buyer must report the transaction using form 8288, which is sent directly to the IRS. In addition, the seller must file form 8288-B within 20 days from the date of the property transfer. The seller must also pay any tax owed to the IRS. If the tax is less than 15% of the sale price, the IRS will issue a refund to the seller.

Even if the seller is not a foreign citizen, they must provide a statement of residency or citizenship. If this information is not provided, the buyer is required to withhold 15% of the sale price.

In summary, the FIRPTA law in Georgia requires buyers to withhold 15% of the sale price of real estate sold by foreign investors. The main goal of this law is to ensure that adequate taxes are paid on the sale of real estate in the United States by foreign investors.