Foreign buyers can buy Florida real estate for personal use given they follow the U.S. rules and guidelines outlined by the Foreign Investment in Real Property Act (FIRPTA). This outlines how the foreign nationals are subject to taxes.
There are some exceptions to such as the foreign individual being a resident alien with a tax ID and if the sale is under $300,000. Likewise, the individual uses the property for personal use 50% of the time, and that they’ve obtained an IRS withholding certificate.
In almost all sales – foreign nationals will need to withhold about 10% to 15% of the gross sale price for taxation. This can be handled through a personal sale, LLC, or corporation. Once the latter get involved – other restrictions may apply such as the need to have a physical office in Florida and/or to register activity to the U.S. Department of Commerce.
Many South Florida real estate agents in Jupiter handle most, if not all, of the paperwork related to foreign property buying and investing. This includes items like handling titles, deeds, insurance, property taxes, and more.
Working with banks in the event a foreign national requires financing brings about other hurdles and requirements. In this case, the bank will often need a wealth of income proof from the individual – so sometimes it’s easier to work with a bank with global operations instead of a local, FL-based bank.
Those looking to call Florida their home will be delighted to know that Florida is very open to foreign investment. It’s not uncommon to buy homes with cash in SFL, given the individual understands the U.S. banking/tax system.
All in all, one’s best opportunity to explore Florida real estate is by connecting and working with a proven real estate professional in Jupiter and the surrounding areas.
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