Foreign Nationals and Florida Real Estate
Florida welcomes international buyers with relatively few barriers. Unlike some US states, Florida does not restrict foreign ownership of residential property. However, the process differs from a domestic purchase in important ways.
Financing Options
Most foreign nationals will need to pay cash or secure foreign national mortgages — specialized products offered by a handful of US and international lenders.
Typical terms for foreign national loans: - 30-40% down payment required - Rates typically 1-1.5% above conventional rates - No US credit score needed; overseas bank statements accepted - Loan amounts from $500K to $5M+
Tax Considerations
FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers to withhold 15% of the purchase price at closing, which the seller can recover via tax filing if they owe less.
Florida property taxes are assessed annually. Expect approximately 1.1-1.4% of assessed value per year.
Recommended Steps
- Engage a buyer's agent experienced with international clients
- Open a US bank account before starting your search
- Consult a US tax attorney early in the process
- Plan for 60-90 day closing timelines
