Foreign investors in U.S. real estate have been stymied by the Foreign Investment in Real Property Tax Act, or FIRPTA, since 1980. At the end of 2015, changes to the law were introduced that could significantly affect U.S. property markets. Paul Buckley is managing partner with First Avenue Partners, a private funds placement agent, and Caroline James serves as principal and head of real estate with the firm. Buckley and James recently spoke by phone from London with Loretta Clodfelter, editor of Institutional Real Estate Americas, on the implications for U.S. and non-U.S. investors following the recent FIRPTA reforms.

How have the FIRPTA rules been reformed for non-U.S. investors?

Paul Buckley: The PATH Act passed at the end of 2015 is the first significant reform of FIRPTA, the Foreign Investment in Real Property Tax Act, since it was first passed in 1980. So it has been a