US Gift Tax Rules for Non-Resident Aliens

Offshore Tax with HTJ.tax · Apr 17, 2026 · 1m

The U.S. gift tax system treats non-resident aliens (NRAs) very differently from U.S. citizens. Understanding this distinction is key for cross-border planning and structuring.⚖️ 1️⃣ The Core RuleUnder Internal Revenue Code §2501(a)(2):• A non-resident alien is subject to U.S. gift tax only on certain U.S.-situated assets👉 Specifically:• Real property located in the U.S. • Tangible personal property located in the U.S.🌍 2️⃣ What Is NOT Taxed?A major advantage for NRAs:• Intangible property is excluded from U.S. gift taxThis includes:• Shares of stock (even in U.S. companies) • Bonds and…