
The Sunshine State welcomes real estate investors from around the globe, but that doesn’t mean buying property in Florida as a non-U.S. citizen isn’t without its complexities. If you’re preparing to purchase property in Florida, here are some key things foreign investors should know to navigate Florida’s real estate laws confidently and successfully.
Key Considerations for Foreign Real Estate Investors in Florida
Navigating the state’s real estate laws is essential for a successful investment and long-term ownership experience. This is much easier with expert legal counsel at your side. If you have questions about Florida real estate laws or need help closing on a property, contact our firm at the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc. Here are some other reminders and things to keep in mind:
- There are no restrictions on property ownership by foreigners – As you may know, there are no specific restrictions on property ownership in Florida based on nationality or citizenship. Foreign investors can buy and sell residential, commercial or investment properties with relative ease. That said, understanding local and federal regulations is still essential for a smooth transaction.
- Financing investments may be more challenging for foreign investors – 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.
- Be aware of FIRPTA and other tax implications – One of the most critical regulations foreign investors must be aware of is the Foreign Investment in Real Property Tax Act (FIRPTA). FIRPTA requires that buyers withhold a percentage of the sale price (usually 15%) when a foreign national sells U.S. real estate. This withholding acts as a prepayment of potential tax obligations.
- Consider ownership structure – Another decision is determining how you will own the property – personally or through an entity such as a corporation, trust or limited liability company (LLC). Each option comes with its benefits and drawbacks, so weigh the decision carefully.
- Protect your investment with title insurance – It’s highly recommended that foreign investors obtain title insurance to protect against any potential disputes over ownership or claims against the property. Title insurance provides peace of mind that the property is free from liens or encumbrances and protects you for as long as you or your heirs own the property.
Contact Us at Sirulnik Law and ADS Title Services, Inc.
Florida’s real estate market offers substantial opportunities for foreign investors, but navigating the legal landscape can be complex. Understanding U.S. property laws, tax obligations and the impact of FIRPTA is critical for making informed investment decisions. Call us at the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc. to ask your questions and seek legal counsel on successfully purchasing, managing and profiting from your Florida real estate investment. Contact us to learn more.