Buying property in Florida as an international investor can be an incredible opportunity, but it’s not without its complexities. International transactions come with added layers of regulation, tax implications and logistical hurdles, but when you work with experienced Florida real estate and legal professionals, you can rest assured that your purchase will be structured properly, compliant with all laws and as seamless as possible, no matter where you’re buying from.
In this post, we outline what every foreign buyer should know before purchasing real estate in Florida.
First, Understand Your Ownership Options
Before signing a purchase contract, first decide how you’ll hold title to the property. Foreign buyers typically purchase real estate as individuals or through an entity such as an LLC or corporation.
Each option has different implications for liability, privacy and taxes. For example, buying through an LLC can help protect personal assets and simplify estate planning, while individual ownership may be better suited for vacation or personal-use properties. The best choice depends on your goals and country of residence, so consulting a Florida real estate attorney before structuring your purchase is essential.
Prepare for FIRPTA Compliance
The Foreign Investment in Real Property Tax Act (FIRPTA) affects all real estate transactions involving foreign sellers. FIRPTA requires buyers to withhold a portion of the sale price (typically 15%) when purchasing from a non-U.S. seller, then remit it to the IRS.
While this applies at the point of sale rather than purchase, buyers should ensure all FIRPTA documentation is correctly handled to avoid liability. Working with an attorney familiar with international transactions helps prevent costly mistakes during closing.
Arrange Financing and Currency Transfers
While some foreign investors opt to pay cash for property in Florida, others seek financing options. Securing a mortgage as a non-U.S. citizen can be more challenging, but it is possible. Lenders often require foreign buyers to put down larger down payments (typically between 30% and 50% of the purchase price), and they may face potentially higher interest rates.
If paying cash, plan ahead for currency transfers and international wire fees. Large transfers can trigger compliance reviews or currency conversion delays, so coordinate with your bank and title company early to ensure funds are ready for closing day.
Plan for Closing Day
You don’t have to be in Florida to complete your real estate purchase. Many international buyers close their transactions through mail-away closings or Remote Online Notarization (RON), which allows you to sign documents and transfer funds from abroad.
RON closings are fast and convenient, but they may not be an option in all situations. In those cases, mail-away closings where documents are signed, notarized and returned by courier are great alternatives. Your attorney and title company can coordinate the process and ensure all documentation meets Florida’s recording requirements.
Manage Taxes and Ongoing Obligations
Owning Florida real estate comes with federal and state tax responsibilities, but there are also several advantages, including no state income tax. Investors may also benefit from depreciation deductions and tax treaty provisions that prevent double taxation. Work with a CPA who understands international property ownership and can help optimize your tax strategy while keeping you compliant.
Contact Us at Sirulnik Law with Questions
Buying Florida real estate as a non-U.S. resident requires careful planning, but with the right legal and title support, it can be a seamless and profitable experience. At the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc., we guide international buyers through every step from entity formation and contract review to FIRPTA compliance and closing coordination.
Contact us today to learn how we can help you purchase property in Florida with confidence.
