How to Buy Property in Miami as a Foreigner: A Step-by-Step Guide

Can foreigners buy property in Miami?

Yes. There is no federal or Florida requirement to be a US citizen or resident to own real estate in Miami. International buyers from Latin America, Europe, Canada and beyond purchase condos, single-family homes and pre-construction units every year, either in their own name or through a legal entity.

Owning property does not give you a visa or immigration status, and it does not allow you to live in the US beyond what your visa permits. It simply gives you title to an asset, with the same property rights as any other owner.

One important exception: a Florida law passed in 2023 (often referred to as SB 264) restricts certain purchases by individuals and entities connected to designated “foreign countries of concern,” including near military installations and critical infrastructure, with broader limits for some buyers domiciled in China. Buyers are typically asked to sign an affidavit about this at closing. If it could apply to you, speak with a Florida real-estate attorney before making an offer.

Step 1: Choose your market and neighborhood

Miami is not one market. Brickell and Downtown offer high-rise condos near offices and restaurants; Miami Beach, Surfside, Sunny Isles and Bal Harbour are oceanfront; Coconut Grove and Coral Gables lean toward homes and quieter streets; Edgewater and Wynwood have newer towers and a younger, arts-oriented feel.

Start from how you will use the property. A second home for a few months a year, a full-time residence for your family and an investment you plan to rent each point to different buildings. Rental rules in particular vary sharply from building to building, so define your goal before you fall in love with a view.

• Personal use: prioritize location, amenities, services and building quality.
• Rental investment: confirm the building’s leasing rules and local short-term rental restrictions first.
• Long-term appreciation: compare resale vs. pre-construction and look at the building’s financial health.

Step 2: Budget the total cost and decide between cash and financing

Beyond the purchase price, plan for closing costs (title insurance, recording fees, lender fees if you finance, and in some cases transfer taxes), plus the ongoing costs of ownership: property taxes, HOA or maintenance fees, insurance and utilities.

As a rough planning figure, many buyers set aside a few percent of the price for closing costs, and then budget annual carrying costs separately. Condo buyers should also review the building’s reserves and any pending special assessments, which have become more common after Florida’s post-2021 condo safety laws. Our guide on the cost of owning a condo in Miami breaks these items down in detail.

Many international buyers pay cash, which makes offers simpler and closings faster. Financing is available to foreign nationals, but terms differ from resident loans: down payments are often 30% to 50%, rates are typically higher and documentation requirements are heavier. Not every condo building qualifies for every loan program.

If you plan to finance, get pre-qualified before you make offers so you know your real budget and timeline. Some buyers pay cash at purchase and refinance later; that strategy has its own requirements, so discuss it with a lender early.

Step 3: Choose an ownership structure (personal name, LLC or trust)

How you hold title is one of the most important decisions for a foreign buyer, and it should be made before you sign the contract. The main options are your personal name, a US limited liability company (LLC), a foreign company, or a trust, sometimes in combination.

The key reason this matters is US estate tax. Nonresident aliens are generally subject to US estate tax on US-situs assets, which includes US real estate, and the exemption for nonresidents is only $60,000, compared with a much larger exemption for US citizens and residents. Rates on the excess can be substantial. Some structures and tax treaties can reduce this exposure, while others offer liability protection or privacy but add cost, reporting obligations or different tax treatment on a future sale.

There is no single right answer: it depends on your country of residence, any tax treaty, your family situation, whether you will rent the property and your exit plan. Reporting rules for entities buying US real estate have also changed several times in recent years. Before choosing, consult a US tax attorney or CPA with international experience, ideally coordinated with your advisor at home.

• Personal name: simple and low-cost, but maximum estate-tax exposure.
• LLC: liability separation and easier management; a single-member LLC is often disregarded for tax and may not by itself solve estate tax.
• Foreign corporation or trust structures: may address estate tax in some cases, but are more complex and costly to maintain.

Step 4: Open a US bank account and get an ITIN

A US bank account makes it much easier to pay HOA fees, property taxes, insurance and utilities, and to receive rent. Many banks open accounts for nonresidents, but requirements vary and some require an in-person visit. Expect to provide your passport, proof of address abroad and information about the source of your funds.

An Individual Taxpayer Identification Number (ITIN) is the IRS number for people who are not eligible for a Social Security number. You will generally need one if you earn rental income, file a US tax return or sell the property. It is requested with IRS Form W-7, usually together with a tax return or through a certified acceptance agent, so ask your CPA about timing.

Step 5: From offer to closing in Miami

Once you find the right property, your agent prepares a written offer. In Florida, the most common resale contracts are standardized forms that set the price, deposit, financing terms, inspection period and closing date. When the seller accepts, you sign and send an initial deposit to an escrow agent, usually a title company or attorney, within a few days.

During the inspection period, typically 7 to 15 days, you hire a licensed inspector, review the condo documents and association rules, and confirm insurance costs. The title company searches for liens and issues a title commitment, and you obtain an owner’s title insurance policy. If you are financing, the lender orders an appraisal and finalizes underwriting.

At closing, you sign documents (in person, by power of attorney or, in some cases, by remote online notarization), funds are wired, the deed is recorded with the county and you receive the keys. A typical cash resale can close in about 30 days; financed purchases often take 45 to 60 days.

• Offer and acceptance
• Initial deposit into escrow
• Inspection and document review
• Title search and title insurance
• Financing approval (if applicable)
• Final walkthrough, closing and deed recording

Wiring money safely: avoid wire fraud

Real-estate wire fraud is a serious and common risk. Criminals impersonate title companies, attorneys or agents by email and send “updated” wiring instructions. Once money is wired to the wrong account, recovering it can be extremely difficult.

Always verify wiring instructions by phone using a number you obtained independently, never one from the email that contains the instructions. Treat any last-minute change in bank details as a red flag. Send a small test amount if possible, and confirm receipt with the title company before sending the balance. Also plan for international transfer times and your home country’s currency rules well ahead of closing.

Taxes after you buy: rental income, selling and FIRPTA

Florida has no state personal income tax, which is one reason Miami attracts international owners. You will still pay annual property taxes and, if you rent, US federal tax rules apply to your rental income. Foreign owners who rent should plan for those rules from day one.

When a foreign person sells US real estate, the Foreign Investment in Real Property Tax Act (FIRPTA) generally requires the buyer to withhold 15% of the gross sale price and remit it to the IRS. This is a prepayment, not the final tax: you file a US return and may receive a refund if the actual tax is lower. Reduced or zero withholding can apply in specific cases, such as some sales to buyers who will use the property as their residence below certain price thresholds, and sellers can apply to the IRS for a withholding certificate to reduce the amount withheld.

Florida’s homestead exemption and the Save Our Homes cap on assessment increases are only available to people who make the property their permanent residence and have the legal status to do so. Most foreign second-home owners and investors do not qualify, which affects how property taxes grow over time.

Disclaimer

This guide is for general information only and does not constitute legal, tax or financial advice. Laws and rates change, and every buyer’s situation is different. Consult a qualified US real-estate attorney, tax attorney or CPA before making decisions. S&S Real Estate Miami’s bilingual advisors can help you coordinate the process and connect with independent professionals.