Foreign nationals buying Miami real estate face 4 unique steps: obtaining an ITIN tax ID, optional but common LLC formation, FIRPTA withholding planning at resale (15 percent of gross sale price), and typically cash purchase (over 60 percent of foreign buyers pay all cash). Miami sees more foreign-buyer transactions than any other US city. Source: NAR 2025 International Transactions in US Residential Real Estate.
Foreign national buyers purchased $4.4 billion in South Florida real estate in 2025, up 42% year over year, according to the Miami Association of Realtors. Argentine, Colombian, Canadian, Brazilian, Mexican, British, German, French, Italian, Swiss, and Russian buyers are all active in this market. If you are buying from outside the United States, the transaction is mechanically different from a US-resident purchase. This guide walks through every step.
Step 1: Get an ITIN (Individual Taxpayer Identification Number)
Non-US buyers need an ITIN to own US property and pay taxes. File IRS Form W-7 with supporting identity documents. Processing takes 8-12 weeks. Your real estate attorney or a Certified Acceptance Agent can expedite. You do not strictly need an ITIN before signing a purchase contract, but you need one by closing to take title. To see which countries are buying most and how much they spend, read the Miami foreign buyer flow report for 2026.
Step 2: Open a US Bank Account
Most Miami banks open accounts for non-residents: Chase, Bank of America, Wells Fargo, City National Bank of Florida, Santander. Walk-in with passport, proof of foreign address, ITIN (if available), and initial deposit ($5,000-$25,000 minimum). This account funds deposits, wires, and ongoing carrying costs.
Step 3: Choose Your Ownership Structure
Three common options: (1) Personal name, simple, but subjects your US assets to US estate tax (40% over $60K for non-residents, without treaty relief). (2) US LLC, pass-through taxation, adds asset protection, estate-tax planning. Florida LLC formation $125 + annual $138. (3) Foreign corporation holding a US LLC, layered structure used by Latin American family offices for privacy and estate planning. Consult a CPA who knows your home country's tax treaty with the US before choosing.
Step 4: Arrange Financing (If Not All-Cash)
51% of foreign buyers pay all cash per 2025 NAR data. If financing: foreign-national mortgages are available from specialty lenders (HSBC, Citibank Private Wealth, Quontic, America Mortgage Bank, Lendai). Typical terms: 30-40% down, interest rate 0.5-1.0% above US-resident jumbo rates (so ~7.75-8.5% in Q2 2026), 30-year fixed or 7/1 ARM. No US credit history required; lenders use bank statements, asset statements, and home-country income documentation.
Step 5: FIRPTA Withholding at Resale
When you eventually sell, the Foreign Investment in Real Property Tax Act (FIRPTA) requires the buyer to withhold 15% of the gross sale price and send it to the IRS. This is a withholding, not the tax itself, you file a US tax return to reconcile actual tax owed against withholding. Timely reclaim of overwithholding requires a Florida CPA familiar with foreign-seller filings. Build this into your exit planning.
Step 6: Annual Compliance
File IRS Form 1040-NR annually to report US rental income (if any) and capital gains (on sale). If using an LLC, file Form 5472 disclosing foreign ownership of US entities. If holding more than $10K in US accounts, file FBAR (from your home country if required). Property tax and HOA fees are paid directly; no US tax filing required for mere ownership without income.
"I've closed transactions with international buyers across multiple countries. The ones who arrived with a checklist of specific questions on reserves, deposits, and assignment terms, consistently negotiated better on final terms."Gerardo Gonzalez, Licensed Real Estate Agent at Compass
2026 Market Data: Where Foreign Capital Is Flowing
According to the Miami Realtors International Report 2026, foreign buyers invested $4.4 billion in South Florida residential properties in 2025, up 42 percent from $3.1 billion in 2024. That capital came from buyers across 73 countries, with Colombia ranking as the top source country. Colombia and Argentina together account for 27 percent of all international closed sales in South Florida. In Q1 2026, foreign buyers accounted for 42 percent of Miami condo sales and 52 percent of new-construction sales.
Median condo price in Miami-Dade reached $640,000 in Q1 2026, down 9 percent from the 2023 peak, creating a re-entry window for buyers who were priced out during the run-up. Overall Miami-Dade inventory sits at 17 months of supply, a buyer's market by most measures, but branded new developments continue to sell at full pricing on the original deposit schedule. At the very top of the market, the Miami $5M+ ultra-luxury cohort behaves differently, with cash share near 80 percent and far tighter inventory. For neighborhood-level breakdowns, see my Miami neighborhood guide and the Q1 2026 pre-construction market report.
| Source Country | Share of Intl Sales | Primary Neighborhoods |
|---|---|---|
| Colombia | #1 (largest share) | Brickell, Edgewater |
| Argentina | #2 | Sunny Isles, Bal Harbour |
| Brazil | #3 | Brickell, Coconut Grove |
| Canada | #4 | Aventura, Bay Harbor |
| Mexico | #5 | Coral Gables, Coconut Grove |
Country-specific guides for Colombian buyers, Argentine buyers, Brazilian buyers, Canadian buyers, and Russian buyers cover home-country tax treaties, fund-routing mechanics, and OFAC compliance specific to each market.
Florida SB 264: Restricted Countries and What You Need to Know
Florida Statute SB 264, effective July 1, 2023, restricts certain foreign nationals from purchasing real property in Florida. Nationals of China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria cannot purchase agricultural land or any property within 10 miles of a military base, critical infrastructure, or government facility in Florida. Violations carry felony charges for Chinese nationals and first-degree misdemeanor penalties for nationals of the other listed countries. The restricted-country list has not changed since enactment, but enforcement is active and real.
One exception exists: a foreign national from a restricted country may purchase a single residential property for personal use only, provided the price does not exceed $300,000 and the buyer holds a valid US visa. This exception does not apply to investment properties, LLC-held purchases, or any property near restricted-use facilities. If any buyer has ties to a restricted country, even through a corporate structure, review by a Florida real estate attorney is required before contract execution. The map of military and critical infrastructure proximity zones in Miami-Dade is broader than most buyers expect, covering portions of Opa-locka, Homestead, and areas near port facilities.
- Restricted countries: China, Russia, Iran, North Korea, Cuba, Venezuela, Syria
- Prohibited: agricultural land and properties within 10 miles of military bases, critical infrastructure, or government facilities
- Personal-use exception: 1 residential property under $300,000 for valid-visa holders only
- Penalties: felony for Chinese nationals, first-degree misdemeanor for other restricted nationals
- Action required: Florida real estate attorney review before contract signing for any restricted-country buyer
DSCR Loans: Finance Miami Property Without US Income Documents
Debt Service Coverage Ratio (DSCR) loan programs have become the most practical financing route for foreign national investors in 2026. Unlike conventional mortgages, DSCR loans underwrite the rental income potential of the property, not your personal income or employment history. You need no US tax returns, no W-2, and no US pay stubs. Lenders verify that projected monthly rent covers the projected mortgage payment at a ratio of 1.0 to 1.25x, which most Brickell and Edgewater investment units clear based on current rental market data.
Current DSCR terms for foreign nationals in Miami (Q2 2026): 25 to 30 percent down payment, loan amounts up to $2 million, minimum credit score 620, and minimum loan amount of $150,000. Rates run approximately 0.5 to 1.0 percent above US-resident conventional rates, putting the effective range at roughly 7.75 to 8.5 percent on a 30-year fixed. Specialty lenders with active foreign-national DSCR programs include Quontic Bank, Lendai, and America Mortgage Bank. According to Miami Realtors 2026 data, 51 percent of foreign buyers still pay all cash, but DSCR adoption is rising as buyers optimize capital deployment across multiple markets. For the full breakdown of DSCR structure, underwriting, and lender comparisons, see my DSCR loans for foreign buyers guide.
Common Mistakes I See
- Buying in personal name without understanding US estate tax exposure
- Wiring the full purchase price before opening a US bank account, creates FinCEN reporting complications
- Choosing a generic US tax preparer instead of a CPA who knows your home-country treaty
- Skipping title insurance, US title issues are handled differently than in civil-law jurisdictions
- Assuming cash purchases avoid US reporting obligations (they don't; FinCEN's Geographic Targeting Order covers Miami)
"Foreign buyers who structure correctly before closing save hundreds of thousands in estate tax, withholding, and compliance costs over a 10-year hold. The fee for proper pre-purchase planning is under $10,000."
Ready to structure your Miami purchase correctly? Reach out and I will connect you with an immigration attorney, cross-border CPA, and lender specialized in your home country.
Frequently Asked Questions
Do I need to be a US resident to buy Miami real estate?
No. Foreign nationals can freely purchase Miami real estate. You need an ITIN and a US bank account to close, but neither requires US residency.
What's the US estate tax on Miami property owned by a foreigner?
Without treaty relief, 40% on values above $60,000 at death. Treaty countries (Canada, UK, Germany, Japan, etc.) get higher exemptions. LLC structuring can mitigate exposure entirely for buyers from non-treaty countries.
Can I get a mortgage as a foreign buyer?
Yes, from foreign-national lenders (HSBC, Citibank Private Wealth, Quontic, etc.). Typical terms: 30-40% down, interest 0.5-1.0% above US-resident jumbo rates, no US credit history required.
What taxes do I pay annually on my Miami property?
Property tax (2.0-2.2% of assessed value, paid to Miami-Dade County). If you rent out the property, federal income tax on rental income (via 1040-NR filing). No state income tax in Florida.
Can I Airbnb my Miami condo as a foreign owner?
Yes, if the building allows short-term rentals. You'll need a vacation rental license from Miami-Dade County, collect 13% tourist tax, and report rental income via 1040-NR. The mechanics are the same as for US residents.
What happens to my Miami property if I die?
Depends on ownership structure and estate plan. Personal ownership triggers US estate tax (40% above $60K for non-residents, absent treaty). LLC ownership can avoid US estate tax but has other implications. Set up a proper estate plan before closing, not after.
Frequently Asked Questions
Related guides: Fisher Island luxury condos guide | LLC structuring for foreign buyers | DSCR loans for foreign buyers | FIRPTA withholding guide
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