The 40% Death Tax on Your U.S. Property: The Non-Resident Estate Tax Trap

Published on: July 20, 2026

Last reviewed: 20 July 2026. Tax thresholds and rules change; verify current figures before relying on them.

Most foreign buyers of a Miami condo or a Manhattan apartment plan carefully for the purchase, the rental income, and the eventual sale. Almost none plan for the one event that can cost their family the most: death while still owning the property.

Here is the trap in a single sentence. A U.S. citizen can pass on roughly