If you are a non-U.S. citizen who lives in a foreign country and plan to make a gift of property in the United States. Then you may be surprised to learn that the U.S gift tax rules may apply to you, even though you are not a U.S. citizen.
In general, real property and personal property that is physically located in the United States are subject to the gift tax. For example, if a foreign national were to give $50,000 worth of jewellery while standing on Miami Beach, that gift would be subject to gift tax.
A foreign individual is not liable for U.S. gift tax on the transfer of property that is not located within the United States.
Additionally, transfers of intangible property by foreigners are also exempt from gift tax. For gift tax purposes, bank deposits and treasury bills are typically classified as intangible property.
Foreigners do not have a lifetime exemption from gift tax, but they are eligible for many of the same deductions and exemptions as U.S. citizens or residents. They can claim the same annual exclusion of $16,000 per donee for gifts of U.S.-situs assets. Additionally, payments for qualified educational and medical expenses are excluded from gift tax for foreigners just as they are for U.S. citizens and residents.