Florida Real Estate Tax & Legal Guide 2025 for Latin American Investors
A simple, beginner-friendly guide to buying your first home in Florida — from financing to closing, tailored for new buyers.
Understanding U.S. tax obligations for foreign buyers
Acquiring property in Florida as a foreign investor involves key tax considerations. One of the most important is the Foreign Investment in Real Property Tax Act (FIRPTA). Under FIRPTA, buyers must withhold 15% of the gross sale price when purchasing from a foreign seller—unless the property is a personal residence under $300,000, in which case a reduced 10% withholding may apply. For example, a $500,000 sale requires a $75,000 IRS withholding unless an exemption is properly certified. This is not a final tax but an advance against potential tax liability, and it may be refunded when the seller files a U.S. tax return.
Foreign property owners are also required to file annual U.S. tax returns—even if no tax is owed—to report rental income or gains from a sale.
Florida’s tax environment: what investors should expect
Florida does not levy a state personal income tax, making it attractive for investors seeking passive income or long-term appreciation. However, local property tax rates have surged in recent years. From 2019 to 2024, average tax bills increased nearly 60% in Jacksonville, 57% in Tampa, and 48% in Miami. These rising costs can significantly impact net returns if not factored into investment planning.
Strategic ownership: LLCs, title insurance, and remote closings
Many international buyers choose to hold their Florida properties through an LLC. This legal structure may offer advantages such as:
Asset protection from liability
Simplified estate planning (e.g. avoiding probate)
Increased privacy and, in some cases, more favorable tax treatment
However, each investor’s situation is unique. It’s important to consult with legal and tax professionals to determine the best ownership structure.
Title insurance is also essential to ensure clean ownership and protect against liens or legal disputes. Hiring a local real estate attorney helps ensure compliance and proper due diligence.
Closings can often be completed remotely via Remote Online Notarization (RON) or mail-away processes, enabling smooth international transactions without travel.
Market context: why timing matters in 2025–2026
Between April 2024 and March 2025, foreign buyers invested over $56 billion in U.S. real estate—a 33% year-over-year increase. Florida alone represented 21% of that volume. In South Florida, nearly 49% of new construction units were sold to international buyers, with Latin Americans comprising the majority.
Despite this demand, macroeconomic pressures are cooling the market: insurance premiums are rising, HOA fees are increasing, and properties in Miami and Orlando are staying on the market up to 15 days longer than the year before. These shifts create negotiation opportunities for foreign buyers entering in 2025.
Key takeaways for Latin American buyers
FIRPTA withholding is mandatory unless specific exemption conditions are met.
Annual IRS filings are required for rental income and capital gains.
Florida’s lack of state income tax is offset by rising local property taxes.
LLC ownership may offer benefits but requires professional guidance.
Demand from Latin America remains strong, but the market is more negotiable in 2025.
Legal and tax guidance is essential to avoid costly mistakes.
Book your free consultation with ArBlo
At ArBlo, we help international buyers navigate the complexities of investing in Florida real estate. Our team coordinates with legal and tax experts to guide you through each step: from understanding FIRPTA and structuring your purchase, to closing remotely with confidence.
Book your complimentary consultation here
Sources
Sirulnik Law. Key considerations for foreign investors buying property in Florida. Retrieved July 2025, from sirulniklaw.com
BPB CPA. When does FIRPTA apply to real estate transactions? Retrieved July 2025, from bpbcpa.com
Global Florida Realty. Florida Real Estate Taxes: A Non-Resident Investor’s Guide. Retrieved July 2025, from globalfloridarealty.com
MarketWatch. These two low-tax states are getting hit with fast-rising property taxes. Retrieved July 2025, from marketwatch.com
Salcines Law. Florida Real Estate Tax Advantages for Foreign Investors. Retrieved July 2025, from salcineslaw.com
H&CO. Florida Housing Market 2025 Forecast. Retrieved July 2025, from hco.com
New York Post. Foreign buyers spent $56B on US real estate in one year — and Florida got most of it. Retrieved July 2025, from nypost.com
Miami Realtors. Latin Americans lead new construction sales in South Florida. Retrieved July 2025, from miamirealtors.com
New York Post. Homes taking longer to sell in Florida metros. Retrieved July 2025, from nypost.com
Disclaimer
This article is provided for informational purposes only and does not constitute legal, tax, or investment advice. Please consult with a qualified attorney or tax advisor before making any investment decision. ArBlo does not provide legal or tax services directly but works with licensed professionals to support your investment journey.