FIRPTA (Foreign Investment in Real Property Tax Act) 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, FIRPTA works in a similar way to the rest of the country. When a foreign investor sells real estate in the state of Georgia, the buyer must retain 15% of the purchase price of the real estate. This withholding is a kind of security against taxes that the Internal Revenue Service (IRS) could later impose on the sale.

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

It is important to note that 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, FIRPTA in Georgia requires buyers to retain 15% of the sales price of real estate sold by foreign investors. The primary purpose of this law is to ensure that proper taxes are paid on the sale of real estate in the United States by foreign investors.