Selling Your DVC Ownership as a Foreign Owner: What You Need to Know About FIRPTA

For owners of Disney Vacation Club (DVC) living outside the U.S., selling your contract comes with unique challenges — especially when it comes to tax compliance. The Foreign Investment in Real Property Tax Act (FIRPTA) governs how foreign sellers pay taxes on U.S. real property, and recent updates for the 2026 tax year have introduced additional considerations. Here’s everything you need to know and how to sell your contract confidently.

What is FIRPTA?

FIRPTA is a federal law that applies when a foreign individual sells U.S. real estate, including DVC contracts, which are legally considered real property. Under FIRPTA:

• The buyer is required to withhold 15% of the sales proceeds.
• These funds are sent to the IRS to cover potential taxes owed on the sale.

In the past, this process was manageable via title companies or escrow agents. But recent regulatory changes have added complexity for foreign sellers, buyers, and brokers alike.

The FIRPTA Changes That Affect DVC Sellers

As of September 30, 2025, the IRS began phasing out paper checks for FIRPTA payments. While the online payment system isn’t fully implemented yet, all payments will eventually need to be submitted electronically through a portal tied to the buyer’s taxpayer ID, as early as the 2026 tax year. 

It’s important to note that these changes come on top of existing IRS delays and frequent processing errors that have historically affected FIRPTA transactions. Even before the new rules, buyers and sellers sometimes experienced long wait times, misapplied payments, or incorrect filings. The new electronic requirement increases the complexity and potential for issues, making the process less predictable for foreign DVC sellers.

Key implications include:

• Many buyers are not yet prepared to handle the electronic process.
• Some buyers may be unable or unwilling to comply once the system is fully in place.
• Increased risk and uncertainty for sellers, brokers and escrow agents regarding FIRPTA compliance.

For DVC owners abroad, this means that selling your contract on the open market is becoming more challenging, as buyers may hesitate until the electronic system is fully operational.

Why Traditional DVC Listings Are Challenging

Even with a professional title or escrow company, the new electronic FIRPTA requirement falls on the buyer, not the seller. This creates several risks:

• A buyer may back out if unable to comply with EFTPS enrollment or the deadline.
• Sellers can experience closing delays, hold‑backs, or even failed transactions.
• Brokers assume increased liability if FIRPTA payments aren’t handled correctly.

Because of these uncertainties, our brokerage is not accepting traditional DVC listings from foreign sellers at this time. Marketing a contract publicly while the rules are in transition is unfair to buyers and exposes all parties to unnecessary risk.

Quick Sale: A Stress-Free Option for DVC Owners

To help foreign DVC owners sell confidently, we offer a Quick Sale program. Here’s what that entails:

• We purchase your DVC ownership directly, taking on the buyer responsibilities and FIRPTA compliance.
• Quick Sale offers are generally below traditional market value, but what you get is certainty and a guaranteed closing.
• You avoid potential delays, complications, and the stress of finding a compliant buyer.

Important: The Quick Sale option does not exempt you from FIRPTA taxes. You will still owe the required tax under U.S. law — this option simply ensures the process is handled correctly and efficiently.

What DVC Sellers Should Consider

• If you’re not in a rush to sell: You may choose to wait and see how the process develops in 2026.
• If you want certainty and speed: The Quick Sale option provides peace of mind and a clean, compliant closing.
• If you’d like to explore more, Visit the IRS FIRPTA page for further reading: IRS FIRPTA Information
• Title partner resource: For detailed requirements on the upcoming FIRPTA payment changes, see the Stewart Title article here: Requirements for FIRPTA Payments are Changing

Conclusion

Selling a DVC ownership as a foreign owner requires careful planning. With FIRPTA changes coming in 2026 and the shift toward electronic payments, traditional sale pathways are getting more complex. Our Quick Sale program offers a dependable, streamlined alternative — we handle IRS compliance and buyer‑side responsibilities so you can sell with confidence. 

If you’re a foreign DVC owner thinking about selling, contact us today to discuss your options and see if a Quick Sale is right for you.

Posted By:

Kristen Tutas