The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether or not the donor intends the transfer to be a gift. For a nonresident not a citizen of the United States, the gift tax applies to the transfer by gift of certain U.S.-situated property. You make a gift if you give certain property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full market value or if you make an interest-free or reduced-interest loan, you may be making a gift. For nonresidents not citizens of the U.S., transfers subject to gift tax include real and tangible personal property that is situated in the U.S. However, gifts of U.S.-situated intangible property are not subject to gift tax. See IRC § 2501(a)(2). Such intangibles include, for example, stock of U.S. corporations. For more information, see Frequently Asked Questions on Gift Taxes for Nonresidents not Citizens of the United States. Related international topics Estate tax for nonresidents not citizens of the United States Frequently asked questions on estate taxes for nonresidents not citizens of the United States Transfer certificate filing requirements for the estates of nonresidents not citizens of the United States Transfer certificate filing requirements for the estates of nonresident citizens of the United States Gift tax for nonresidents not citizens of the United States Estate & gift tax treaties (international) Related Estate and gift taxes Estate tax Frequently asked questions on estate taxes Information for executors Gift tax Frequently asked questions on gift taxes Filing estate and gift tax returns Transcripts in lieu of estate tax closing letters Frequently asked questions on the Estate Tax Closing Letter Penalties What's new — Estate and gift tax Publications Forms and Publications - Estate and Gift Tax About Publication 559