Foreign nationals can buy real estate in Florida without citizenship or residency requirements. However, the transaction involves U.S. tax obligations, entity structuring decisions, and closing procedures that differ from domestic purchases. This guide covers what you need to understand before committing — and where you need professional guidance from a U.S. tax attorney, not just a real estate agent.
What Is FIRPTA and How Does It Affect Your Purchase?
The Foreign Investment in Real Property Tax Act (26 U.S.C. § 1445) requires withholding of a percentage of the gross sales price when the seller of U.S. real property is a "foreign person" as defined under the Internal Revenue Code.
FIRPTA primarily affects you when you sell the property, not when you buy it. However, understanding the withholding obligation at purchase time is important for planning:
- General rule: 15% of the amount realized is withheld and remitted to the IRS (IRS — FIRPTA Withholding)
- Reduced rate:10% when the property is acquired for use as the buyer's residence and the amount realized is $1,000,000 or less (see the $300,000 exemption below for smaller purchases), per IRS Form 8288 Instructions
- Exemption: No withholding if the amount realized is $300,000 or less and the buyer has definite plans to use the property as a residence, per IRS Form 8288 Instructions
- Withholding certificate:The IRS may issue a certificate authorizing a reduced withholding amount based on the seller's actual expected tax liability
Source: IRS — FIRPTA Withholding; IRS — Form 8288 Instructions; 26 U.S.C. § 1445
Should You Buy Through an LLC or Corporation?
Many international buyers purchase through a U.S. entity — typically a Florida LLC or a U.S. corporation. The choice of structure affects:
- U.S. income tax treatment of rental income and capital gains
- Estate tax exposure — nonresidents not U.S. citizens may need to file a U.S. estate tax return if the fair market value of their U.S.-situated assets exceeds a $60,000 exemption, compared to a $15,000,000 basic exclusion amount for 2026 available to U.S. citizens and residents (adjusted annually and subject to change by Congress)
- Tax treaty implications between the U.S. and your country of residence
- Liability protection and privacy
Consult a tax attorney first
The optimal entity structure depends on your country of tax residence, applicable tax treaties, your estate planning goals, and whether you plan to rent the property. This is not a decision to make based on a web article. Consult a U.S. tax attorney or CPA who specializes in international real estate transactions.
Can You Close Without Traveling to Miami?
Yes. Remote closings are common for international buyers. Several methods are available:
- U.S. consulate or embassy: Documents can be signed and notarized at a U.S. consulate in your home country
- Apostille: For countries that are parties to the Hague Apostille Convention, documents notarized locally and apostilled may be accepted
- Remote online notarization (RON): Florida authorizes remote online notarization under FL § 117.265, which allows documents to be notarized via audio-video communication
Your attorney and title company should confirm which method is acceptable for your specific transaction and the title insurance underwriter's requirements.
What Financing Options Exist for Foreign Nationals?
Foreign nationals are not eligible for conventional mortgage programs that require U.S. citizenship or permanent residency. However, several financing options may be available:
- Foreign national loan programs: Portfolio lenders offer mortgage products specifically for non-U.S. citizens. These programs typically require a larger down payment than conventional financing, and terms vary significantly by lender — ask each lender you compare for their specific down payment and rate requirements.
- ITIN loans: Buyers with an Individual Taxpayer Identification Number (ITIN) may qualify for certain mortgage programs. An ITIN can be obtained from the IRS regardless of immigration status.
- DSCR loans:For investment properties, Debt-Service Coverage Ratio loans are underwritten based on the property's rental income rather than the borrower's personal income — which can be advantageous for international investors.
Global G Real Estate works with an affiliated lender that offers foreign national, ITIN, and DSCR loan programs. Buyers should compare options from multiple lenders to find the best terms for their situation.
Important
This guide is for educational purposes and does not constitute legal, tax, or financial advice. International real estate transactions involve complex tax and legal considerations that vary by country of residence. Buyers should consult a U.S. tax attorney, their own legal counsel, and their own lender before making any decisions.
Frequently Asked Questions
Can a foreign national buy property in Florida?
Yes. There are no citizenship or residency requirements for purchasing real estate in Florida. Foreign nationals can buy residential and commercial property in their own name or through a legal entity. However, certain financing, tax, and reporting requirements differ from those that apply to U.S. citizens and residents.
What is FIRPTA and how much is withheld?
FIRPTA (the Foreign Investment in Real Property Tax Act, 26 U.S.C. § 1445) requires the buyer to withhold a percentage of the amount realized when the seller is a foreign person. The general withholding rate is 15% of the amount realized. A reduced rate of 10% applies when the property is acquired for use as the buyer’s residence and the amount realized is $1,000,000 or less. No withholding is required if the amount realized is $300,000 or less and the buyer has definite plans to use the property as a residence. The IRS may issue a withholding certificate for a reduced amount based on the seller’s actual tax liability.
Sources: IRS — FIRPTA Withholding; IRS — Form 8288 Instructions
Do I need a U.S. bank account to buy property in Miami?
Not necessarily to purchase, but practically useful. Some title companies and lenders require funds to originate from a U.S. bank account for anti-money laundering compliance. Wire transfers from foreign banks are common but may require additional documentation. Your attorney and title company can advise on the specific requirements for your transaction.
Can I close on a Miami property without traveling to the U.S.?
Yes. Remote closings are common for international buyers. Documents can be signed before a U.S. consulate or embassy in your home country, or before a notary whose authority is recognized through an apostille under the Hague Convention. Some transactions use remote online notarization (RON), which Florida has authorized under Florida Statute § 117.265. Your attorney should confirm which method is acceptable for your specific transaction.
Source: Florida Statute § 117.265 (2025)
Should I buy in my personal name or through an LLC?
This depends on your specific tax situation, liability exposure, estate planning goals, and the country where you are a tax resident. Many international buyers use a U.S. LLC or corporation, but the structure has tax implications that vary by country of residence due to tax treaty provisions. Consult a U.S. tax attorney or CPA who specializes in international real estate transactions before choosing a structure.