A two-dimensional (2-D) model of a building supported by a semi-circular flexible foundation embedded in nonlinear soil is analyzed. The building, the foundation, and the soil have different physical properties. The model is excited by a half-sine SH wave pulse, which travels toward the foundation. The results show that the spatial distribution of permanent, nonlinear strain in the soil depends upon the incident angle, the amplitude, and the duration of the pulse. If the wave has a large amplitude and a short duration, a nonlinear zone in the soil appears immediately after the reflection from the half-space and is located close to the free surface. This results from interference of the reflected pulse from the free surface and the incoming part of the pulse that still has not reached the free surface. When the wave reaches the foundation, it is divided oil two parts-the first part is reflected, and the second part enters the foundation. Further, there is separation of this second part at the foundation-building contact. One part is reflected back, and one part enters the building. After each contact of the part of the wave that enters the building with the foundation-building contact, one part of the wave energy is released back into the soil. This process continues until all of the energy in the building is released back into the soil. The work needed for the development of nonlinear strains spends part of the input wave energy, and thus a smaller amount of energy is available for exciting the building.