Taxation of Foreign Investors in Florida Real Estate
Foreign investor taxation: FIRPTA (IRC 1445): buyer withholds 15% of gross sale price. Exceptions: 0% ($300K residence), 10% ($300K-$1M residence), 15% all other. FL: no state income tax. Property tax: same as residents. Rental: US federal tax (elect net income at regular rates). Estate tax: $60K exemption only (vs. a much larger exemption for citizens); up to 40%. Planning: foreign corporation, treaty, or life insurance.
FIRPTA
- 15% withholding on sale
- 0%/10% for residence under $1M
- Seller files US return for refund
Ongoing Taxes
- Property tax: same as residents
- Rental: federal income tax
- FL: no state income tax
Estate Tax
- $60K exemption (non-resident aliens)
- Up to 40% rate
- Plan: corporation, treaty, insurance
Related Terms
- Tax Deed — Property tax sale
Barnes Walker Real Estate
Barnes Walker’s attorneys advise foreign investors in Florida RE. Request a legal inquiry for assistance.
Florida Law Reference
26 U.S.C. § 1445 (FIRPTA); Fla. Stat. § 196.031
FIRPTA requires withholding of 15% of the gross sales price when a foreign person sells U.S. real property. Florida also imposes additional requirements for nonresident sellers.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC