The process, step by step
Set goals and budget
A video call to agree on budget, target return, how you will use the property and your timeline. Irina also asks who your tax advisor and lawyer are, or introduces you to cross-border specialists.
Prepare funds and documents
Passport, proof of funds (bank or brokerage statements), and a U.S. or international bank account that can wire funds. If you will finance, start lender pre-approval now.
Choose how you will own it
Individually, jointly, or through an entity such as an LLC. The choice affects U.S. estate tax, liability, rental income tax and the sale. Decide with your advisor before signing a contract.
Shortlist and due diligence
Irina sends listings with expected rent, HOA dues, property taxes, insurance and flood zone. For condos, review association finances, reserves, special assessments, rental rules and structural inspection status under Florida’s condo safety laws.
Offer and contract
Florida typically uses standard Florida Realtors/Florida Bar contracts. An escrow deposit goes to a title company or attorney. Inspection and financing periods protect you.
Inspections and appraisal
Independent inspections (general, wind mitigation, four-point for insurance) and, if financing, an appraisal. Insurance quotes should be in hand before the inspection period ends.
Closing, in person or remotely
You can sign remotely with a power of attorney notarized and apostilled in your country, or by remote online notarization where allowed. Every buyer also signs Florida’s foreign-principal affidavit at closing.
After closing
Apply for an ITIN, decide on the net-income election for rental income, set up property management and insurance, and calendar U.S. and home-country tax filings.
Taxes every foreign owner should know
- FIRPTA: when a foreign person sells U.S. real estate, the buyer generally withholds 15% of the gross sale price for the IRS. The withholding is a prepayment, and the actual tax is settled on the seller’s U.S. return.
- Rental income: by default, 30% of gross rent is withheld. Most investors elect to be taxed on net income instead, which lets them deduct expenses and depreciation and file a U.S. nonresident return each year (an ITIN is needed).
- Estate tax: nonresidents who aren’t U.S. citizens get only a $60,000 U.S. estate tax exemption on U.S. assets unless a treaty improves it. Ownership structure matters.
- Florida: no state personal income tax. Property taxes and insurance are the main carrying costs, and both should be budgeted before you buy.
Who can buy
Most foreign nationals can buy Florida real estate without a visa or residency. Since 2023, Florida restricts certain purchases by people domiciled in countries of concern (China, Russia, Iran, North Korea, Cuba, Venezuela and Syria), with the broadest limits for people domiciled in China. If that could apply to you, consult a Florida real estate attorney before making an offer. Sanctions rules may also apply.
Typical costs to budget
- Closing costs: title insurance, recording, lender fees and Florida documentary stamp taxes on the deed and mortgage
- Annual property taxes: investment property doesn’t get Florida’s homestead exemption
- Insurance: wind and, where required or advisable, flood
- HOA or condo association dues and any special assessments
- Property management, often a percentage of rent, plus leasing fees
Not legal or tax advice. This article is general information, not legal, tax or immigration advice. Tax rules, treaties and exchange rates change. Before you buy, talk to a cross-border tax advisor and a lawyer licensed in the relevant countries. Irina Manets is a licensed real estate sales associate with CENTURY 21 Stein Posner and does not provide tax or legal advice.