The Foreign Buyer's Guide to Purchasing Miami Real Estate

Miami has become one of the most active global destinations for cross-border real estate investment. International capital from Latin America, Europe, and Asia flows into South Florida at a scale that no other US market matches. But foreign buyers face a distinct set of tax, legal, and financing considerations that differ meaningfully from domestic transactions — including FIRPTA withholding, entity structuring decisions, and limited mortgage availability. This guide covers what you need to know before committing capital.

Miami is one of the most foreign buyer-friendly real estate markets in the world — with one major exception. Florida law now restricts purchases by nationals from certain countries. If this applies to you, read the next section carefully before proceeding.

For the broader US framework — ownership structures, financing, and closing — read our pillar guide: How International Buyers Purchase US Luxury Real Estate →

IMPORTANT: Florida SB 264 Restrictions

Effective July 1, 2023, Florida Senate Bill 264 restricts property purchases by nationals from seven "foreign countries of concern." This law remains in effect despite ongoing legal challenges.

If you are a citizen of one of these countries, restrictions apply:

China (most restrictive): Chinese citizens who are NOT US citizens or lawful permanent residents are essentially banned from purchasing property in Florida. The only exception:

• May purchase ONE residential property
• Property must be 2 acres or less
• Must NOT be within 5 miles of any military installation
• Must hold a non-tourist visa or have been granted asylum

Russia, Cuba, Venezuela, Iran, Syria, North Korea: Nationals cannot purchase property within 10 miles of military installations or critical infrastructure — which covers approximately 98.5% of Florida's residential land. This is effectively a near-total ban.

Penalties are severe:

• Property forfeiture to the state
• Felony charges with up to 5 years imprisonment
• Penalties apply to buyers, sellers, AND real estate professionals

All buyers — regardless of nationality — must sign an affidavit at closing confirming compliance with SB 264.

Current status: The law is being challenged in court (Shen v. Simpson) but remains in effect as of late 2025.

If this applies to you: Consult with a US immigration attorney before attempting to purchase. Alternatively, consider New York — NYC has no similar restrictions and remains open to buyers from all countries.

Why Miami Works for Foreign Buyers 

No co-op restrictions.

Unlike New York, where 70% of the market is co-ops with boards that effectively exclude foreign buyers, Miami is almost entirely condominiums. You buy real property. There's no board interview, no requirement that your income come from the US, no restrictions on subletting. If you have the funds, you can buy.

No state income tax.

Florida has no state income tax — a major advantage for investors generating rental income and for high-net-worth individuals establishing residency. Combined with federal deductions for depreciation and expenses, many investors pay zero income tax on Miami rental income for the first 10-15 years.

Homestead protection.

Florida's homestead laws offer extraordinary asset protection. If you establish Florida residency and homestead your primary residence, creditors generally cannot force the sale of your home to satisfy debts. For international buyers concerned about asset protection, this is significant.

International infrastructure.

Miami is a gateway city. Banks here routinely work with foreign nationals. Attorneys specialize in cross-border transactions. Real estate agents (including us) conduct business in Spanish, Portuguese, French, and other languages. The entire ecosystem is set up to serve international buyers.

Where Foreign Buyers Are Purchasing

Brickell

Miami's financial district attracts Latin American buyers who want urban convenience and proximity to international banks and businesses. High-rise condos, walkable streets, strong rental demand. Entry points around $500K for one-bedrooms, $1M+ for larger units in top buildings.

Miami Beach

Iconic oceanfront living. South of Fifth (SoFi) is the ultra-luxury enclave. Mid-Beach and North Beach offer more space and a quieter feel. European and South American buyers dominate here. Oceanfront units start around $1M and climb to $20M+ for penthouses.

Sunny Isles Beach

Strong Russian and Latin American buyer presence. Modern high-rise towers, many with branded residences (Porsche Design Tower, Residences by Armani Casa, upcoming Bentley Residences). Direct ocean views at prices below Miami Beach.

Coconut Grove

More residential, family-oriented. Appeals to buyers seeking a neighborhood feel rather than a high-rise lifestyle. Mix of condos and single-family homes.

Coral Gables

Mediterranean architecture, tree-lined streets, excellent schools. More single-family homes than condos. Appeals to families establishing permanent residency.

Post-Surfside Due Diligence

Following the Champlain Towers collapse in 2021, Florida passed significant condo reform legislation. As a foreign buyer, you need to understand what this means:

Milestone inspections: Buildings over three stories and 30+ years old (25 years if near the coast) must undergo structural inspections. Some older buildings have failed or face expensive remediation.

Reserve requirements: Associations can no longer waive reserves for structural components. Many buildings are now collecting special assessments to fund reserves they previously ignored.

What to ask before buying:

• Has the building completed its Milestone Inspection? What were the results?
• What is the current reserve funding level?
• Are there pending or recent special assessments?
• What is the building's plan for compliance?

Your buyer's agent should verify all of this before you make an offer. Poorly maintained buildings with deferred maintenance are risky purchases right now.

Financing for Foreign Nationals

Miami lenders are experienced with international buyers. Typical terms:

• 30-50% down payment
• Interest rates approximately 0.5% above domestic rates
• $3-5M+ maximum loan amounts at private banks
• 12 months reserves required

Lenders who work with foreign buyers:

• HSBC (extensive foreign buyer programs)
• Citi Private Bank
• JP Morgan Private Bank

You'll need passport documentation, proof of income, bank statements, and a credit reference from your home country bank.

Cash purchases are common — roughly 50% of Miami luxury transactions are all-cash.

Tax Considerations

Rental income: Fully deductible expenses plus depreciation often eliminate tax liability for years. You must file US tax returns and elect to be taxed on net income.

FIRPTA: When you sell, 15% of the gross sale price is withheld for the IRS. This is refunded (minus actual tax owed) when you file your return.

Estate tax: This is the big one. Foreign nationals face potential 40% estate tax with only a $60,000 exemption (compared to $13.99 million for US citizens in 2025, rising to $15 million in 2026). Structure your purchase through a foreign corporation or hedge with life insurance. Consult a tax attorney before buying.

No state income tax: Florida's lack of state income tax makes Miami more attractive than New York or California for income-generating investments.

Full details on foreign buyer tax issues →

The Buying Process

1. Engage a buyer's agent — Someone who knows Miami, works with international buyers, and will represent your interests (not the seller's)
2. Get pre-approved — If financing, secure a pre-approval letter from a lender who works with foreign nationals
3. Define your criteria — Neighborhood, building type, budget, investment vs. personal use, rental potential
4. Search and tour — We can conduct virtual tours if you're overseas
5. Make an offer — In Florida, offers are made in writing with a deposit
6. Due diligence — Inspection period (typically 10-15 days) to review condo documents, financials, inspection reports
7. Close — Can be done remotely via Power of Attorney

The entire process typically takes 30-45 days for cash purchases, 45-60 days with financing.

FIRPTA and Tax Considerations for Exit Strategy

The Foreign Investment in Real Property Tax Act (FIRPTA) requires a 15% withholding of the gross sale price when a foreign person sells US real estate. This is not a tax — it is a withholding applied at closing and remitted to the IRS. After filing a US tax return, the seller receives a refund of any amount withheld in excess of actual tax liability.

Why this matters for your exit strategy: FIRPTA withholding is based on the gross sale price, not the gain. On a $5 million sale, $750,000 is withheld at closing regardless of your profit or loss. Buyers purchasing from foreign sellers may also be liable if withholding is not properly handled — which can complicate negotiations.

Planning for FIRPTA should begin at acquisition, not at sale. The entity structure you choose (personal name, US LLC, foreign corporation) directly affects your FIRPTA exposure, estate tax liability, and ability to defer gains through mechanisms like installment sales.

Buying Through an LLC — What Foreign Buyers Should Know

Many international buyers purchase Miami real estate through a US-based LLC for privacy and liability protection. The LLC holds title to the property, keeping the buyer's name off public records and shielding personal assets from claims related to the property.

Key considerations:

• Privacy: An LLC prevents your name from appearing in public property records — relevant for buyers who value discretion
• Liability protection: If a tenant or guest is injured on the property, claims are limited to the LLC's assets rather than your personal assets
• Tax implications vary by structure: A single-member LLC owned by a foreign person is treated as a disregarded entity for US tax purposes — meaning FIRPTA and estate tax still apply as if you owned directly. A foreign corporation as the LLC member can reduce estate tax exposure but introduces other tax consequences
• Financing complications: Some lenders will not lend to LLCs, or require a personal guarantee. Cash buyers face fewer constraints

The right entity structure depends on your country of residence, tax treaty status, and whether the property is for personal use or investment. Consult a US tax attorney who specializes in cross-border real estate before choosing a structure.

Common Questions from International Buyers

Do I need to visit Miami to buy?

No. We regularly work with buyers who purchase remotely — virtual tours, electronic signatures, Power of Attorney closings. That said, we recommend visiting if possible.

Can I rent out my unit?

Most Miami condos allow rentals with few restrictions. Some buildings have minimum lease terms (30 days, 6 months, or 12 months). Verify rental policies before purchasing if rental income is important to you.

Do I need a US bank account?

Helpful but not required. You'll need to wire funds for closing. Some buyers open US accounts; others wire directly from overseas banks.

What about property management?

We offer property management services for overseas owners — tenant placement, lease management, maintenance coordination. Many of our clients never visit their properties; we handle everything.

Why Work With Us

We've helped international buyers from Brazil, Argentina, Colombia, Mexico, Spain, France, the UK,  Hong Kong, China and dozens of other countries purchase Miami real estate. We understand the unique considerations — from entity structuring to tax planning to managing properties across time zones.

Note: Due to Florida SB 264, we cannot assist buyers from China, Russia, Cuba, Venezuela, Iran, Syria, or North Korea with Florida purchases. If you are from one of these countries, we can help you purchase in New York, which has no such restrictions.

We'll connect you with lenders, attorneys, and tax professionals who specialize in foreign buyer transactions. And we'll guide you through a market that rewards informed buyers and punishes those who don't do their homework.

Contact us →

Miami Office 1688 Meridian Avenue, Suite 700 Miami Beach, FL 33139 +1-305-296-8885

Related Resources:

• Complete Foreign Buyer's Guide to US Real Estate →
• Miami Home Buying Guide →
• Miami's Most Iconic Residential Buildings →
• Search Miami Luxury Condos →
• Miami Pre-Construction Condos →
• Miami Closing Costs Guide →

Frequently Asked Questions — Foreign Buyers in Miami