Buying U.S. real property as a foreign national or non-resident involves rules a domestic buyer never encounters - most significantly FIRPTA withholding on a future sale, and a Florida statute restricting certain foreign buyers from purchasing near sensitive sites. Florida has one of the largest non-resident and international real estate buyer populations in the country, which makes getting these rules right, rather than assuming they work like a standard domestic purchase, worth the extra step of confirming current figures with a qualified professional. Every rate and threshold in this guide should be confirmed against current IRS guidance and the current Florida statute before being relied on for an actual transaction.
| Sale price $300,000 or less, buyer will use as a residence | UNVERIFIED - commonly cited as no withholding required under this exception; confirm current IRS threshold before relying on it |
|---|---|
| Sale price $300,001-$1,000,000, buyer will use as a residence | UNVERIFIED - commonly cited as a reduced 10% withholding rate; confirm current IRS guidance |
| Sale price over $1,000,000, or buyer will not use as a residence | UNVERIFIED - commonly cited as 15% of the amount realized; confirm current IRS guidance |
| Withholding Certificate | UNVERIFIED - commonly cited: IRS Form 8288-B can request a reduced withholding amount based on actual expected tax liability rather than the standard percentage; confirm current form/process |
The Foreign Investment in Real Property Tax Act requires a buyer to withhold a portion of the sale price when purchasing U.S. real property from a foreign seller, and remit it to the IRS as a prepayment toward the seller's eventual U.S. tax liability on the sale. It applies to the seller's foreign status at the time of that future sale - relevant to a foreign buyer today because they will be the seller subject to it eventually.
UNVERIFIED - CONFIRM WITH A TAX PROFESSIONAL: this is real federal tax law with real financial consequences for getting the withholding wrong; treat every specific rate or threshold in this guide as a starting orientation, not a number to rely on for an actual closing.
The buyer (or the closing agent on the buyer's behalf) is generally responsible for withholding and remitting the FIRPTA amount at closing when purchasing from a foreign seller. A buyer who fails to withhold when required can become liable for the amount that should have been withheld - which is why this is a closing-agent-verified step, not something either party should assume the other is handling correctly.
The standard way a buyer is relieved of this obligation entirely is a signed certification from the seller stating they are not a foreign person under FIRPTA - the buyer generally can rely on that certification unless they have actual knowledge it is false. UNVERIFIED - CONFIRM WITH A TAX PROFESSIONAL: the exact certification requirements, and the buyer's liability exposure if withholding is missed, are real financial consequences - confirm the current mechanism and any specific dollar amount at stake before relying on this description for an actual closing.
Yes, though financing options are narrower than for a U.S. borrower with established credit - foreign national loan programs exist specifically for this, typically requiring larger down payments and different documentation (foreign income verification, larger reserve requirements) than a standard domestic mortgage. Cash purchases remain common among foreign buyers partly for this reason.
Florida has enacted a statute restricting certain foreign buyers - citizens or entities tied to specified countries of concern - from purchasing property near military installations and certain other sensitive or critical infrastructure sites. UNVERIFIED - CONFIRM CURRENT STATUTE: which countries and which categories of property are covered has been specific and has drawn legal challenges since enactment; confirm the current, litigated status of this law before relying on any description of it here, including this one.
An ITIN (Individual Taxpayer Identification Number) is generally needed to file the U.S. tax return required after selling U.S. real property, and is often obtained in connection with the purchase or the FIRPTA withholding process rather than being a prerequisite to buying itself. The application process and required documentation are IRS matters, not state real estate law - confirm current requirements directly with the IRS or a tax professional handling the transaction.
Engage a U.S. tax professional and a real estate attorney experienced with foreign buyer transactions before closing, not after - FIRPTA withholding, ITIN timing, and any applicable state restrictions all have consequences that are far easier to plan for in advance than to unwind afterward. This guide is orientation, not a substitute for that professional advice.
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