Taxes are where I always send international buyers straight to a qualified U.S. CPA or international tax attorney — not because the rules are impossible to understand, but because the consequences of getting them wrong are real and the specifics depend on your individual situation. What I can do is give you a clear framework so you know what questions to ask and what to plan for.

I'm Fannie Fleming, REALTOR at ERA Live Moore Real Estate, a 30-year veteran real estate agent with over 1,100 homes sold and 28 Google 5-star reviews. Here are the tax categories every foreign national buyer in Winston-Salem NC needs to understand before they close.

Property Taxes: The Ongoing Annual Obligation

Q: Will I pay the same property taxes as a U.S. citizen? Yes. Foreign national property owners in Forsyth County pay exactly the same property taxes as any other owner. There is no surcharge or additional rate for foreign ownership. The tax is based on the assessed value of the property and the combined Forsyth County and City of Winston-Salem millage rates. Property taxes are typically paid through your mortgage escrow account if you're financing, or directly if you own with cash.

In Kernersville, homes between $200K and $400K carry lower absolute property tax bills than premium markets, making them attractive for tax-conscious investors. Even distinctive options like Tudor-style homes in Kernersville are available at price points where annual tax obligations remain very manageable. Foreclosure homes in Kernersville can offer below-market acquisition but require additional due diligence.

Federal Income Tax on Rental Income

Q: If I rent my Winston-Salem property while living abroad, do I pay U.S. income tax on the rental income? Yes. Rental income from U.S. real property is subject to U.S. federal income tax regardless of whether the owner is a U.S. resident. Foreign national landlords have two options: pay a flat 30% withholding tax on gross rental income (no deductions), or elect to be treated as a U.S. business and file a U.S. tax return, deducting allowable expenses (mortgage interest, depreciation, repairs, management fees) and paying tax only on net income. The second option almost always produces a lower tax bill, but it requires filing a U.S. return.

North Carolina also has a state income tax on rental income earned within the state. Your CPA needs to address both the federal and state obligations.

"The tax piece is the part where I always say: get the right advisor before you close, not after. I've worked with international buyers for 30 years and the ones who set this up correctly from day one have a much smoother ownership experience." — Fannie Fleming, ERA Live Moore Real Estate

Capital Gains Tax and FIRPTA When You Sell

Q: What happens with taxes when I eventually sell my Winston-Salem property? This is covered by FIRPTA — the Foreign Investment in Real Property Tax Act — and it's important to understand before you buy, not when you're ready to sell. I'll cover FIRPTA in detail in Blog 9 of this series. The short version: when a foreign national sells U.S. real property, the buyer is required to withhold 15% of the gross sales price and remit it to the IRS. This is not the final tax — it's a withholding mechanism against your actual capital gains tax liability. You file a U.S. return and receive a refund if the actual tax is less than what was withheld.

In premium markets like Clemmons, where homes between $400K and $600K include gracious Georgian-style properties and charming cottage-style homes, appreciation over a 5-10 year hold can produce meaningful capital gains — making proper tax planning before purchase genuinely important.

The same applies in Bermuda Run, where homes over $600K represent significant investment. The Bermuda Run home value reports document the appreciation this community has historically delivered — which is exactly the appreciation that FIRPTA withholding is designed to capture a portion of when you eventually sell.

For buyers considering Pfafftown, both split-foyer style homes and lower-level condos are available at more moderate price points where the capital gains exposure at sale will be proportionally smaller.

Review the buyers guide Winston-Salem NC 2026 for a full process overview, and consult Fannie Fleming at ERA Live Moore Real Estate to connect with the right tax and legal professionals for your international purchase.