FORM W-8ECI – Certificate of Foreign Person’s Claim for Exemption From Withholding on Income Effectively Connected with the Conduct Of a Trade or Business in the United States.
Generally, a foreign person is subject to US tax on its US source income. Most types of US source income received by a foreign person are subject to US tax of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person’s country of residence and the United States. The tax is generally withheld from the payment made to the foreign person
Form W-8ECI, "Certificate of Foreign Person's Claim for Exemption from Withholding on Income Effectively Connected with the Conduct of a Trade or Business in the United States", is required by your management company. Without this form in their files, they are required by US federal law to withhold 30% of your rental income and pay that amount to IRS.
You should complete and sign form W-8ECI (one per owner) and give to your management company to hold on file. We suggest that you keep copies of the completed and signed forms for your records.
Fill-In Form W-8ECI - http://www.irs.gov/pub/irs-pdf/fw8eci.pdf
Instructions for Completing Form W-8ECI