Foreign Homebuying

Can Foreign…

Updated on December 20, 2024

Can Foreign Nationals Buy Property in Florida? [A Comprehensive Guide]

Q: 3. Are there any tax benefits for foreign property owners in Florida?

Yes, Florida has no state income tax , which allows foreign property owners to retain more of their rental income and profits.

Foreign nationals can purchase property in Florida with ease, and it’s an attractive option due to the state’s booming real estate market. HomeAbroad is here to guide international buyers through every step of the process, from securing a mortgage to…

Written by Michele Lawrie

Licensed Realtor®

Can Foreign Nationals Buy Property in Florida? [A Comprehensive Guide]

Making informed real estate decisions starts with having the right knowledge. At HomeAbroad, we offer US mortgage products for foreign nationals & investors and have a network of 500+ expert HomeAbroad real estate agents to provide the expertise you need. Our content is written by licensed mortgage experts and seasoned real estate agents who share insights from their experience, helping thousands like you. Our strict editorial process ensures you receive reliable and accurate information.

Key Takeaways: 

➡️ Florida is the top destination for foreign buyers in the US, with 20% of all international property purchases occurring here.  

➡️ Foreign buyers can benefit from Florida’s booming real estate market, tax benefits, and high rental demand.  

➡️ HomeAbroad offers tailored mortgage solutions, an investment property search platform, and local real estate agents to foreign nationals

Did you know that Florida is the most popular state for foreign buyers, with 20% of all international property purchases happening here? This makes Florida a hotspot for global investors, thanks to its attractive market, rental opportunities, and sunny weather. Whether you’re looking to invest in rental properties or own a vacation home, Florida offers countless benefits for foreign nationals.

At HomeAbroad, we specialize in helping international buyers understand the complexities of purchasing property in the US.

From securing competitive mortgage rates through HomeAbroad Loans to guiding you in finding the ideal property, our dedicated team is here to ensure the process is seamless and stress-free.

Why is Florida Popular Among Foreign Buyers?

Florida continues to stand out as the top destination for foreign real estate buyers, with 20% of all foreign purchases in the US occurring in the state. Also, this purchase accounted for 5% of all home sales in Florida.

International buyers (foreign real estate buyers) purchased 19,500 existing homes in Florida, accounting for 5% of all home sales.

According to the National Association of Realtors (NAR), this is largely due to the state’s strong appeal to international investors from regions such as Latin America and Canada.

⛔ A recent law has banned nationals from this nation to buy property in Florida.

The Appeal of Florida’s Economy and Real Estate Market

What makes Florida particularly attractive to foreign investors is its robust economy, favorable tax environment, and vibrant tourism industry.

Florida’s no state income tax policy provides significant savings for international buyers, especially those looking to generate rental income from their properties.

Furthermore, the state’s year-round sunny weather and strong tourism market create a steady demand for short-term rental properties, ensuring that investors can see immediate returns.

Florida’s real estate market also offers a mix of luxury properties, affordable homes, and high-value investments. Cities like Miami, Orlando, and Tampa are especially popular, offering diverse opportunities depending on the buyer’s investment goals.

Foreign buyers are particularly drawn to Florida due to its competitive mortgage options and strong rental yields, which provide both immediate and long-term returns.
Michele Lawrie, Licensed Real Estate Professional, HomeAbroad

Key Cities for Foreign Investment:

☑️ Miami: Known as the gateway to Latin America, Miami offers a diverse, cosmopolitan appeal and attracts international buyers looking for luxury condos, waterfront properties, and strong rental opportunities. It’s a favored destination for Latin American buyers, especially Colombians, who are drawn to its cultural and business ties.

Some of the most popular cities in Florida for foreign buyers. Miami, Orlando, and Tampa top the list.

☑️ Orlando: Home to the world’s largest theme parks, Orlando is a prime spot for foreign investors looking to capitalize on short-term rental properties. With millions of tourists visiting annually, the city offers consistent demand for vacation rentals, making it an ideal market for investors from countries like Canada.

☑️ Tampa: Tampa’s economy is growing rapidly, with a mix of affordable and luxury properties. Its strong job market and coastal appeal make it an attractive option for foreign buyers, including those from Europe and India, looking for long-term investments.

Leading Foreign Buyers in Florida

Florida is the top destination for several major international buyer groups, with notable representation from Canadian, Latin American, and Indian investors.

Florida is a popular destination for foreign investors. It is most popular amongst investors from Canada, India, and Colombia.

💲 Canadian Buyers: Florida remains the number one destination for Canadian buyers, with 41% of all Canadian foreign property purchases occurring in the state. Canadians are drawn to Florida’s warm climate, making it a popular spot for both vacation homes and investment properties.

💲 Latin American Buyers: Investors from Latin America, particularly from Mexico and Colombia, dominate the foreign buying market in Florida, accounting for 35% of all foreign purchases. With its proximity to Latin America and shared cultural ties, Florida continues to be an attractive investment hub.

💲 Indian Buyers: Florida also ranks as the top destination for Indian buyers, representing 17% of foreign purchases. Indian buyers are particularly drawn to the state’s strong real estate appreciation and the potential for rental income in tourist-heavy cities.

With this, Florida’s appeal to foreign buyers is clear, but what are the specific advantages of owning property in the state as an international investor?

Benefits of Buying Property in Florida as a Foreign National

Florida offers numerous advantages to foreign nationals looking to invest in real estate, making it one of the most sought-after destinations for international buyers. From generating rental income to enjoying long-term property appreciation, the Sunshine State presents a wide range of opportunities.

💲 Rental Income Opportunities

One of the biggest benefits of investing in Florida is the opportunity to generate substantial rental income, particularly through short-term rentals (STR).

Cities like Miami, Orlando, and Key West stand out due to their thriving tourism markets and high demand for vacation rentals. Foreign investors can benefit from Florida’s tourism-driven economy by renting out properties to visitors year-round.

The rental yields for short term rentals can go as high as 13% in Florida.

💲 Miami: Investors in Miami can expect an average monthly revenue of $5,007 with a strong rental yield of 10.47%. The city also enjoys a relatively stable vacancy rate of 46%, making it one of the best markets for consistent rental returns.

💲 Orlando: Known for its world-famous theme parks, Orlando boasts an average monthly revenue of $4,803 and a high rental yield of 13.83%. The vacancy rate here is 45%, reflecting the year-round demand for vacation rentals from tourists.

💲 Key West: With its stunning beaches and rich cultural appeal, Key West generates an impressive average monthly revenue of $9,325, with a solid rental yield of 10.18%. Despite a vacancy rate of 44%, it remains a top destination for maximizing rental income.

📈 Property Appreciation

Florida’s real estate market has been on a steady upward trajectory, making it an ideal destination for long-term investments. Cities like Naples and Miami are prime examples, with significant property appreciation over the last five years.

Naples, for example, has seen a 5-year appreciation of 82% since May 2019, with housing prices reaching an average of $732,094 in May 2024. Miami is not far behind, showing a 5-year appreciation of 76%, making it one of the top cities for property value growth in the state.

This consistent upward trend in property prices highlights the potential for long-term capital gains for foreign investors. By investing in Florida’s growing real estate market, foreign nationals can secure not only immediate rental income but also enjoy substantial appreciation over time.

To get more information on Florida trends, do not miss out on our detailed guide.

🧾 Tax Benefits

Florida’s tax environment is another major draw for foreign buyers. The state’s lack of income tax allows investors to retain more of their rental income and profits.

You can check out the taxes you need to pay and its implications in our detailed tax guide.

Now that we’ve explored the advantages of buying property in Florida, it’s essential to understand the steps involved in making a purchase.

Steps to Buying a House in Florida

Foreign nationals can follow a straightforward process when purchasing property in Florida. While the steps may seem complex, with the right guidance, the process can be seamless.

For a comprehensive step-by-step guide, check out our HomeAbroad guide: Can Foreigners Buy Property in the US.

Additionally, watch our YouTube video for a visual walkthrough of the buying process.

Steps involved in buying property in the US as a foreign national

As foreign buyers move through the property purchasing process, one crucial factor to consider is financing. Let’s explore the various financing options available for foreign nationals in Florida.

Foreign National Mortgages for Foreign Buyers in Florida

For those seeking financing, HomeAbroad Loans offers tailored mortgage programs designed specifically for foreign nationals. Our mortgage officers provide easy-to-navigate options with minimal documentation and flexible qualification criteria.

Whether you’re a first-time investor or looking to expand your real estate portfolio, HomeAbroad Loans can provide the financing you need to make your Florida property purchase a reality.

Down Payment Requirements: Generally, foreign buyers are required to make a down payment of 25% of the property’s purchase price. HomeAbroad Loans ensures that the process is smooth, even for buyers without a US credit history.

For detailed financing options and requirements, refer to our HomeAbroad Foreign National Mortgage guide.

Conclusion

Florida remains a top destination for foreign nationals looking to invest in US real estate. With its booming tourism industry, attractive property appreciation, and favorable tax environment, the state offers numerous advantages for international buyers.

Whether you’re seeking rental income, a vacation home, or a long-term investment, Florida’s diverse real estate market has something for everyone.

With HomeAbroad, foreign buyers can confidently go through the process of purchasing property in Florida, from securing a mortgage to finding the perfect property. We are here to guide you every step of the way.

FAQs

1. Can foreigners buy property in Florida?

Yes, foreign nationals can buy property in Florida without restrictions. HomeAbroad can assist in the process, from financing to closing the deal.

2. What are the financing options available for foreign buyers in Florida?

Foreign buyers can obtain financing through HomeAbroad Loans, which offers competitive mortgage options tailored for foreign nationals.

3. Are there any tax benefits for foreign property owners in Florida?

Yes, Florida has no state income tax, which allows foreign property owners to retain more of their rental income and profits.

4. What is FIRPTA, and how does it affect foreign sellers?

FIRPTA requires foreign sellers to withhold 15% of the sale price for tax purposes when selling US property. Certain exemptions may apply.

5. Can foreign buyers rent out their property in Florida?

Absolutely. Short-term rentals are especially popular in tourist-heavy areas like Miami and Orlando, allowing foreign investors to generate significant rental income.

About the author:

Michele Lawrie, a seasoned real estate professional licensed in New York and Florida, serves as the Chief Real Estate Officer at HomeAbroad. With over 15 years of experience and specialized certifications from the NAR (National Association of Realtors), Michele is a trusted expert for foreign nationals buying US real estate.