Sell or rent out your Brownsville property from Mexico

01

Who this page is for

Owners who live in Mexico and have a house, a condo, land or a commercial property in Brownsville, South Padre Island or elsewhere in Cameron County. For example:

You bought a home or a lot years ago and now want to sell it.
You have a house you no longer use and would like it to earn rent.
You inherited a property in Texas and want to know your options.
You simply want to know what it is worth before you decide.

Selling from abroad adds three things a local seller does not deal with: FIRPTA withholding, signing from another country and, if you rent, U.S. tax on the rent. Each one is explained below.

02

What Ricardo does

Price it with a market analysis

A comparative market analysis compares your property with recent sales and active listings nearby. Under Texas rules it is an estimated sale price, not the opinion of value of a licensed appraiser.

Prepared by Ricardo and issued in the name of his sponsoring broker, RCR Real Connect Realty.

Market it in English and Spanish

Photos and a description in both languages, and showings coordinated with buyers and their agents, so buyers in Texas and in Mexico can find it and ask about it.

Coordinate a closing from Mexico

Ricardo works with the title company from the start, so you know which documents you can sign from Mexico, how they must be notarized and how your proceeds will be wired to you.

Or rent it out instead

If you prefer to keep it, Ricardo can estimate the market rent from comparable rentals and talk you through leasing it or hiring a licensed property manager.

03

Selling: FIRPTA in plain words

FIRPTA is the federal law that makes sure a foreign seller pays U.S. tax on the sale of U.S. real estate. It works through withholding: the buyer keeps part of the price at closing and sends it to the IRS. The title company usually coordinates it. The rate depends on the price and on whether the buyer will live in the home:

FIRPTA withholding when a foreign owner sells
Situation	Withholding
The buyer is a person who will live in the home, and the price is $300,000 or less	0%
The buyer will live in the home, and the price is over $300,000 and up to $1,000,000	10%
Any other sale (an investor buys it, or the price is over $1,000,000)	15%

The percentage applies to the amount realized, usually the sale price, not to your gain. “Living in the home” means the buyer or a family member plans to live there at least half of the days it is used in each of the first two years.

It is a prepayment, not the final tax. The buyer files Forms 8288 and 8288-A and pays the withholding by the 20th day after the sale. The IRS stamps a copy of Form 8288-A for you; you attach it to a U.S. return (Form 1040-NR) that reports your real gain, and any excess comes back as a refund.
You need an ITIN. The IRS sends the stamped copy only once it has your taxpayer number. You apply with Form W-7, normally together with the return; the IRS says to allow 9 to 11 weeks when you apply from abroad. More about the ITIN.
A withholding certificate can reduce it. Before closing, you or the buyer can ask the IRS for a withholding certificate (Form 8288-B) to reduce or eliminate the withholding when your actual tax will be lower, for example when the gain is small. The IRS generally acts within 90 days of a complete application, so start early.
Texas has no state income tax. The Texas Constitution prohibits a tax on individuals’ net income, so in the U.S. only federal tax applies to your gain. If you are a Mexican tax resident, the sale may also have to be reported in Mexico.

04

Closing from Mexico

Texas law lets you sign the deed and the other closing documents outside the United States. The title company decides which of these options it accepts for your sale, so ask it before you sign anything.

At a U.S. consulate

A U.S. consular officer in Mexico can take your acknowledgment, the notarization of your signature on a document for use in Texas. Ask the consulate near you how it handles notarial services.

Before a notary in Mexico

Texas also accepts an acknowledgment taken by a notary public or another official authorized where you sign. Ask the title company whether it also needs an apostille; Mexico and the U.S. are both parties to the Hague Apostille Convention.

Online, by video

A notary commissioned in Texas as an online notary can notarize your signature by video, even when you are outside Texas, if the title company uses it for your documents.

A power of attorney

Someone signs for you, but only if the title company accepts the document. Send it a draft early and have an attorney review it.

05

Renting it out from Mexico

If you keep the property and rent it, the U.S. taxes the rent of a nonresident in one of two ways. You choose:

Default: 30% of the gross rent

A flat 30% on the gross rent, with no deductions for expenses. The property manager or the tenant usually withholds it and sends it to the IRS.

Election: tax on the net income

You elect to treat the rent as effectively connected income: give the payer Form W-8ECI and file Form 1040-NR every year. You then pay graduated rates on the income after expenses such as property tax, insurance, repairs and management.

The election covers all your U.S. real estate income and stays in effect until revoked. File on time: the IRS does not allow the deductions on a return filed more than 16 months late.

Who looks after it

In Texas, someone who leases or manages your property for pay generally needs a license from TREC. Ask for the license number, check it on the TREC website, and sign a written management agreement that covers fees, repairs, rent deposits and reports.

Texas landlord rules to know

A security deposit must be refunded within 30 days after the tenant moves out (deductions must be itemized).
Once the tenant gives notice, the landlord must make a diligent effort to repair a condition that materially affects the health or safety of an ordinary tenant.
Insure it as a rental. Cameron County is in the coverage area of the Texas Windstorm Insurance Association (TWIA), which covers wind and hail only, generally when a private insurer has turned you down; flood insurance is a separate policy. Nightly rentals on South Padre Island have their own rules: see the vacation rental guide.

06

Selling to buy again: 1031 exchanges

A 1031 exchange lets you defer the tax on the gain when you sell real estate held for investment or for a business and buy other real estate held the same way. A home you live in does not qualify. For an owner who lives in Mexico, these are the points that matter:

U.S. for U.S. only. Under section 1031(h), real estate in the United States and real estate outside it are not of like kind: you cannot exchange your Texas property for one in Mexico.
Strict deadlines. 45 days after the sale to identify the replacement property in writing, and 180 days to receive it (or your tax return’s due date, if earlier). Taking control of the sale proceeds before the exchange is complete can disqualify it, which is why exchanges usually go through a qualified intermediary.
FIRPTA still applies. The buyer of your property withholds unless the IRS issues a withholding certificate, or you give the buyer a valid written notice that the transfer qualifies for nonrecognition, which the buyer files with the IRS within 20 days.

Plan the exchange with a CPA before you list the property, not after you have an offer.

07

Questions from owners

I live in Mexico and want to sell my property in Texas. How much will be withheld for taxes?

Under FIRPTA, the buyer generally must withhold 15% of the amount realized (usually the sale price) and send it to the IRS within 20 days of the sale; the title company coordinates it at closing. If the buyer is a person who will live in the home, there is generally no withholding when the price is $300,000 or less, and the rate is 10% up to $1,000,000. The withholding is a prepayment, not the final tax: you file a U.S. return (Form 1040-NR) to report the actual gain and recover any excess, and for that you need an ITIN (Form W-7). Before the sale you or the buyer can ask the IRS for a withholding certificate (Form 8288-B) to reduce or eliminate the withholding when the expected tax is lower; the IRS generally acts within 90 days of a complete application. Texas has no state income tax. Plan the sale with a CPA who works with nonresidents.

Can I sell my property without traveling from Mexico?

Often, yes. Texas law accepts an acknowledgment signed outside the United States before a U.S. consular officer, or before a notary public or another official authorized to take oaths where you sign, such as a notary in Mexico. Ask the title company whether it also needs an apostille, the certificate that authenticates a Mexican public document for use abroad; Mexico and the United States are both parties to the Hague Apostille Convention. A notary commissioned in Texas can also notarize your signature online by video. A power of attorney is an option only if the title company accepts the document, so send it a draft early. The title company decides how each document must be signed, so ask at the start, not the week of closing.

Can I rent out my Brownsville property while I live in Mexico?

Yes. By default the U.S. taxes a nonresident’s rent at 30% of the gross amount, with no deductions, and the property manager or tenant usually withholds it. You can instead elect to treat the rent as effectively connected income: give the payer Form W-8ECI and file Form 1040-NR every year, and you pay graduated rates on the net income after expenses. Someone who leases or manages your property for pay generally needs a license from TREC. Texas landlord rules apply too: for example, a security deposit must be refunded within 30 days after the tenant moves out, and a condition that materially affects a tenant’s health or safety must be repaired once the tenant gives notice.

Can I do a 1031 exchange if I live in Mexico?

A 1031 exchange defers the tax on the gain when you exchange real estate held for investment or business use for other real estate held the same way. For an owner in Mexico, three points matter. U.S. real estate can only be exchanged for U.S. real estate: under section 1031(h) a property in Mexico is not of like kind. The deadlines are strict: 45 days to identify the replacement property in writing and 180 days to receive it, and taking control of the sale proceeds before the exchange is complete can disqualify it, which is why exchanges usually go through a qualified intermediary. And FIRPTA still applies: the buyer withholds unless the IRS issues a withholding certificate or you give a valid written notice that the transfer qualifies for nonrecognition. Plan the exchange with a CPA before you list the property.

References

Sources

Last updated Oct 28, 2026

Sell or rent out your Brownsville property from Mexico.

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