Two withholding rules, not one
Sellers who live elsewhere often hear about “withholding” and assume it is one rule. There are two, and they turn on different questions. Georgia’s rule asks whether you are a Georgia resident. The federal rule, FIRPTA, asks whether you are a foreign person. A seller can face one, both or neither, so sort out which applies before you list.
Georgia’s 3 percent rule
When a nonresident of Georgia sells Georgia real property, the buyer generally must withhold 3 percent of the purchase price and send it to the Georgia Department of Revenue. (O.C.G.A. 48-7-128 (2025 Georgia Code), via Justia, checked 2026-10-19)
Notice who the duty falls on: the buyer. That is why buyers and their closing attorneys take it seriously.
The buyer’s side of it
- A buyer who fails to withhold Georgia's nonresident tax when required is personally liable for it. O.C.G.A. 48-7-128 (2025 Georgia Code), via Justia, checked 2026-10-19
- The buyer reports and pays Georgia's nonresident withholding on Form G2-RP, due by the last day of the month after the month of closing. Georgia Department of Revenue, Form G2-RP (Rev. 06/01/23), PDF, checked 2026-10-19
Ask your closing attorney early how they will handle the withholding and the form, and what they need from you before closing day. Our page on nonresident seller withholding covers the rule in more detail.
Withholding on the gain instead of the price
If your gain is much smaller than the sale price, there is a second route.
A nonresident seller can give the buyer a sworn affidavit of the gain, and the buyer then withholds 3 percent of the gain instead of the price. (O.C.G.A. 48-7-128 (2025 Georgia Code), via Justia, checked 2026-10-19)
The Department of Revenue’s affidavit for this is Form IT-AFF2. To see why it matters, take a hypothetical $400,000 sale. Three percent of the price is $12,000. If the sworn gain were $50,000, three percent of the gain would be $1,500. Your own figures, and whether the affidavit fits your situation, are questions for your tax adviser.
When the withholding does not apply
Exceptions in the rule
- Georgia's nonresident withholding does not apply when the property is the seller's principal residence, in foreclosure or deed-in-lieu transfers with no extra consideration, or when certain government agencies or Fannie Mae, Freddie Mac or Ginnie Mae are a party. O.C.G.A. 48-7-128 (2025 Georgia Code), via Justia, checked 2026-10-19
- Georgia DOR's rule says no nonresident withholding is required when the purchase price is less than $20,000. Ga. Comp. R. & Regs. r. 560-7-8-.35 (Georgia DOR rule), via Cornell LII, checked 2026-10-19
Whether a home counts as your principal residence under this rule is a tax question, and the statute’s wording is dated. Do not assume either way; ask a tax professional before you sign anything that says it does.
There is also a path for nonresident sellers who meet certain conditions.
A seller who meets listed conditions (such as having filed Georgia returns for the two prior years) and signs a sworn affidavit is treated as a Georgia resident for this withholding. (O.C.G.A. 48-7-128 (2025 Georgia Code), via Justia, checked 2026-10-19)
The Department of Revenue’s example affidavit for that is Form IT-AFF1. Again, whether you qualify is a question for your tax adviser.
FIRPTA, if you are a foreign person
The federal rule is separate and applies only when the seller is a foreign person.
The federal rule
- Under federal FIRPTA rules, buyers of U.S. real property from foreign persons generally must withhold 15 percent of the amount realized. Internal Revenue Service, FIRPTA Withholding page (last reviewed or updated 21-Jul-2026), checked 2026-10-19
- No FIRPTA withholding is required when the buyer, an individual, acquires the home as a residence and the sales price is not more than $300,000. Internal Revenue Service, Exceptions from FIRPTA Withholding page (last reviewed or updated 15-Jul-2026), checked 2026-10-19
- The IRS says reduced FIRPTA withholding can apply when the buyer acquires the home as a residence and the amount realized is between $300,000 and $1 million. Internal Revenue Service, FIRPTA Withholding page (last reviewed or updated 21-Jul-2026), checked 2026-10-19
The IRS pages we read describe reduced withholding but do not state the reduced rate, so we do not print one. If FIRPTA may apply to you, get tax advice before you list.
Signing from a distance
You do not always have to fly in. The State Bar has addressed video closings, and in-person signing has been custom rather than a statute.
Remote closings
- A 2025 State Bar of Georgia formal advisory opinion says a lawyer can conduct a real estate closing by video conference, as long as the lawyer controls the closing process from beginning to end. State Bar of Georgia, Formal Advisory Opinion No. 23-1 (issued Jan. 23, 2025; Supreme Court Docket No. S25U1154), PDF, checked 2026-10-19
- The State Bar opinion notes that neither Georgia statutes nor the Rules of Professional Conduct require all parties to meet in person to transfer title, though an in-person closing has been customary. State Bar of Georgia, Formal Advisory Opinion No. 23-1 (issued Jan. 23, 2025; Supreme Court Docket No. S25U1154), PDF, checked 2026-10-19
Whether your closing attorney offers it, and whether your buyer’s lender will accept it, is up to them. A Georgia deed also has its own signing formalities, which is why the attorney may send you a package to sign in front of the right people:
A Georgia deed to land must be in writing, signed by the maker, attested by an officer (such as a notary) and attested by one other witness. (O.C.G.A. 44-5-30 (2024 Georgia Code), Justia page via Internet Archive capture of 2025-05-12 (also matches FindLaw text), checked 2026-10-19)
If you plan to sign through someone else, read our page on remote and power of attorney closings first and raise it with the attorney weeks ahead, not days.
Your proceeds, and wire safety
Sellers who are far away do much of the closing by email, which is exactly where wire fraud starts. The consumer bureau’s advice is written for buyers, but it works just as well for your payout instructions.
Before any money moves
- The CFPB advises writing down contact information for two trusted people, such as your real estate and settlement agents, who can confirm payment details. CFPB, 'Buying a home? Beware of mortgage closing scams' one-page handout (PDF), checked 2026-10-19
- The CFPB says not to use phone numbers or links from an email, and to confirm with your trusted contacts using only the numbers you saved. CFPB, 'Buying a home? Beware of mortgage closing scams' one-page handout (PDF), checked 2026-10-19
Never send your bank details in reply to an email you did not expect. Call your closing attorney at a number you already have. Our wire fraud page has a short plan for the first hour if something goes wrong.
A simple order of operations
- Before you list: talk with a tax adviser about Georgia withholding, the affidavits and, if it could apply, FIRPTA.
- When you sign a contract: tell the closing attorney right away that you live out of state, and ask what they need from you.
- Several weeks out: settle how you will sign, whether in person, by video if offered, or through someone else the attorney approves.
- Before any money moves: confirm payout instructions by phone at a number you already have.
- After closing: keep your copy of the settlement statement and any withholding paperwork for your tax adviser.
The other seller lines
The withholding is money sent to the Department of Revenue, not a fee paid to anyone at closing; how it fits into your Georgia tax return is a question for your tax adviser. Your closing costs follow the same rules as any seller’s, starting with the transfer tax:
The Department of Revenue says the seller is liable for the transfer tax, though the parties frequently agree in the sales contract that the buyer will pay it. (Georgia Department of Revenue, Real Estate Transfer Tax page, checked 2026-10-19)
Your contract decides that split, along with how the year’s property taxes are prorated. See Georgia closing costs for sellers for the full list.
If you have not listed the home yet, you can read how Gold Peach Realty works with sellers in North Georgia, including owners who live out of state.
This article is education, not legal advice. Dahlonega Closing Guide is published by Gold Peach Realty, a real estate brokerage, not a law firm. For advice about your own deal, ask a Georgia attorney.
Tax questions about withholding, exemptions and your gain belong with a tax professional.
Questions buyers ask
Do I have to pay Georgia withholding if I sell a Georgia house and live out of state?
Generally yes, unless an exception applies. When a nonresident of Georgia sells Georgia real property, the buyer generally must withhold 3 percent of the purchase price and send it to the Georgia Department of Revenue.
Can Georgia nonresident withholding be based on my gain instead of the price?
Yes. A nonresident seller can give the buyer a sworn affidavit of the gain, and the buyer then withholds 3 percent of the gain instead of the price.
Is FIRPTA the same as Georgia nonresident withholding?
No. FIRPTA is a federal rule for sellers who are foreign persons: buyers generally must withhold 15 percent of the amount realized. Georgia’s withholding is a separate state rule for sellers who are not Georgia residents.
Source: Internal Revenue Service, FIRPTA Withholding page (last reviewed or updated 21-Jul-2026)
Written by the Dahlonega Closing Guide Editorial Team. AI tools help us draft; people check every fact against its source before it publishes.
Education, not legal advice. Statutes, fees and forms change; every rule on this page links to the law or office that sets it. Your closing attorney and your contract decide what applies to your closing.
