Buying Florida Real Estate as a Foreign Buyer: The Complete Guide

Florida draws more international buyers than any other U.S. state. The combination of no state income tax, warm weather, strong rental demand, and a direct flight network to Latin America, Europe, and Canada makes it a logical first move for overseas investors and second-home buyers alike.

The purchase process itself is similar to what a U.S. resident would experience -- offer, inspection, title, close. But international buyers face a distinct set of tax obligations, financing constraints, and -- as of 2023 -- a new Florida statute that restricts ownership for nationals from certain countries. Getting those pieces right upfront saves money at closing and prevents legal exposure later.

This guide covers the six things every international buyer should understand before making an offer in Florida. I am writing this as a Central Florida and Tampa Bay agent who works with buyers from outside the U.S. -- not as a tax attorney or immigration lawyer. Where noted, consult your own counsel.

FIRPTA Withholding: What the Buyer Owes the IRS at Closing

FIRPTA -- the Foreign Investment in Real Property Tax Act -- applies when a foreign person sells U.S. real estate. The obligation falls on the buyer, not the seller: the buyer is required to withhold a portion of the sale price and remit it to the IRS.

The withholding rate structure as of 2024:

• Under $300,000 and the buyer intends to use the property as a personal residence for more than half the days used in each of the first two years: no FIRPTA withholding required.
• $300,001 to $1,000,000: withhold 10% of the gross sale price.
• Over $1,000,000: withhold 15% of the gross sale price.

The withholding is calculated on the gross sale price -- not the gain. If a foreign seller paid $800,000 and is selling for $900,000, the buyer still withholds 10% of $900,000, which is $90,000. The seller files a U.S. tax return, claims the actual capital gains tax liability, and receives a refund if the amount withheld exceeds the actual tax owed.

The main mitigation tool is a withholding certificate. A foreign seller can file IRS Form 8288-B before or during escrow to ask the IRS to reduce the withholding to an amount closer to the actual expected tax. If approved, the buyer withholds the reduced amount. Certificates typically take 90 days to process, so the application should be filed early in the escrow period.

For buyers who are foreign nationals purchasing from another foreign national, both sides of the table need to be clear on who coordinates FIRPTA compliance. Your escrow or title company should handle the mechanics -- but confirm this explicitly before assuming it is covered.

ITIN: Getting a Tax ID Without a Social Security Number

An Individual Taxpayer Identification Number (ITIN) is a nine-digit IRS-issued number for people who have a U.S. tax filing obligation but are not eligible for a Social Security number. Most foreign national real estate buyers in Florida need one.

You need an ITIN when you sell a Florida property and need to claim a refund of FIRPTA withholding, file a U.S. tax return for rental income, or claim treaty benefits. If you are buying for investment and plan to rent the property, you will file U.S. taxes on the rental income -- which requires a tax ID.

The application is IRS Form W-7. For FIRPTA purposes, select Exception 4 (Box h, write in Exception 4). Submit the form with original identification documents or certified copies. A valid passport is the cleanest option -- it satisfies both the identity and foreign-status requirements on its own.

Processing takes seven weeks outside of tax season, nine to eleven weeks if you apply between January 15 and April 30. If the timeline is tight relative to a closing, an IRS-certified Acceptance Agent can handle the application and retain copies of your documents so you do not have to mail originals.

Your CPA or international tax counsel should advise on whether your treaty country changes any of these obligations. The U.S. has tax treaties with many countries that reduce or eliminate certain withholding requirements.

Foreign National Mortgage Programs: What Financing Actually Looks Like

Conventional U.S. mortgages -- Fannie Mae, Freddie Mac, FHA -- are generally not available to non-resident foreign nationals. The foreign national mortgage market is served by portfolio lenders and private credit shops that write their own underwriting guidelines.

Two main structures are available in Florida as of 2024:

• Standard foreign national loan: income verified via employer letter or CPA letter, no SSN required at application, U.S. credit not required. Typical LTV is 65-75% (25-35% down). Rates run 1-3 points above comparable conventional rates depending on the lender and country of origin.
• DSCR loan (Debt Service Coverage Ratio): qualifies based on the rental income the property can generate rather than the borrower personal income. The lender wants to see that projected rent covers the mortgage payment -- most programs require a DSCR of at least 1.0, with best pricing starting at 1.25. Down payment is typically 25-30%.

DSCR loans are the dominant choice for foreign investors buying vacation rentals in Orlando or short-term rentals in Tampa Bay because they sidestep the income documentation barrier entirely. The property qualifies itself.

Many foreign buyers pay cash. Florida Realtors data for the 2023-2024 reporting period shows that 67% of international buyers in Florida paid all cash, versus around 26% for domestic buyers. If you are using a wire transfer from an overseas account, your title company will need to verify source of funds as part of standard anti-money-laundering compliance.

Currency timing matters if you are purchasing with funds held in a non-dollar account. The difference between a strong and weak exchange rate on a $500,000 purchase can be $15,000-$25,000 or more depending on the currency pair. Some international buyers work with an FX broker to lock a forward contract on the rate once they are under contract -- this eliminates the currency risk during the 30-45 day escrow period.

Where International Buyers Are Concentrating in Florida

Florida Realtors tracks international buyer activity by metro. Here is where the transactions were concentrated for the August 2023 to July 2024 reporting period:

• Miami-Fort Lauderdale-West Palm Beach: 49% of all Florida international purchases. The South American and European buyer base is deepest here. Price points are the highest in the state.
• Orlando-Kissimmee-Sanford: 11%. The vacation rental corridor around Disney and Universal drives this. Short-term rental yields can be strong in Osceola County and south Orange County.
• Tampa-St. Petersburg-Clearwater: 7%. Growing buyer base from Latin America and Canada. Downtown St. Pete and the coastal corridors draw second-home buyers. Prices are lower than Miami for comparable waterfront product.
• Cape Coral-Fort Myers: 6%. Canadian buyers have historically been a large segment here. Insurance availability remains a real factor in that market post-Hurricane Ian.
• Naples-Immokalee-Marco Island: 5%. Higher-end market, strong European buyer presence.

For Central Florida buyers, the I-4 corridor between Tampa and Orlando offers a strong combination of price point, rental demand, and airport access. Properties in Hillsborough and Pinellas counties are within 30-45 minutes of Tampa International Airport, which has direct routes to the UK, Germany, and major Latin American hubs.

SB 264: Florida Foreign Ownership Restrictions

In 2023, Florida enacted Senate Bill 264, effective July 1, 2023. It restricts real property ownership by foreign principals -- defined as citizens, domiciliaries, agents, or entities controlled by the governments of specific countries. This is the most significant change to Florida real estate law for international buyers in decades.

The seven designated countries under the law: the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, and the Syrian Arab Republic.

What the law prohibits for covered foreign principals:

• Owning or acquiring agricultural land in Florida.
• Owning or acquiring any interest in real property within 10 miles of any military installation or critical infrastructure facility in the state.

What is still permitted under a limited carve-out: a foreign principal who is a natural person (not a government entity or government-controlled corporation) may purchase up to one residential parcel not exceeding two acres, as long as the parcel is not within five miles of any military installation. This is a narrow exception -- consult legal counsel to verify whether a specific property and buyer combination qualifies.

Compliance obligations: as of July 1, 2023, all buyers in Florida are required to sign an affidavit at closing attesting that they are not a foreign principal as defined by the statute. Violations carry civil and criminal penalties, including potential forfeiture of the property to the state.

This is a legal and regulatory matter. If you are a citizen of one of the seven designated countries or have connections to a government-controlled entity from one of those countries, you need Florida real estate counsel before making any purchase. This guide is not legal advice -- consult your own attorney for specifics.

“SB 264 is complex enough that experienced Florida real estate attorneys are still working through edge cases. If your situation involves any connection to a designated country -- citizenship, dual citizenship, corporate structure -- get a legal opinion specific to your facts before going under contract.”

Practical Steps Before You Make an Offer

Here is the checklist I walk through with every international buyer client before we start searching:

1. Get pre-approved or confirm your cash position. If financing, connect with a foreign national mortgage lender early -- the pre-approval process takes longer than a domestic loan. If paying cash, prepare for the title company to request source-of-funds documentation.
2. Engage a U.S. tax advisor with international expertise. They will clarify your FIRPTA exposure on eventual resale, your rental income filing obligations, and whether your country has a relevant tax treaty with the U.S.
3. Apply for your ITIN if you do not already have one. Start this process at least 10-12 weeks before you expect to close.
4. Confirm SB 264 compliance status. If you hold any citizenship or ties to the seven designated countries, get a legal opinion before going under contract.
5. Consult on entity structure. Some international buyers purchase through an LLC or foreign corporation for liability and estate planning reasons. Entity-held purchases have different FIRPTA and SB 264 implications.
6. Understand the insurance market. Florida homeowners insurance costs have risen substantially since 2021, particularly in coastal and hurricane-exposed areas. Factor insurance costs into your carrying-cost model.
7. Plan your currency conversion timeline. Once you go under contract, the clock starts on your 30-45 day escrow window. If you need to convert funds from another currency, start that process immediately.

I work with buyers from outside the U.S. across the Tampa Bay and Central Florida markets. The transactions are not more complicated than a domestic purchase once you have the right advisors in place -- but the right advisors are essential, not optional. If you are starting your search and want a referral to a foreign national lender, international CPA, or Florida real estate attorney, reach out and I will connect you.