Why Daytona Beach Is on the Global Buyer's Radar
International buyers poured $56 billion into U.S. residential real estate between April 2024 and March 2025 — a 33% surge that marks the first year-over-year increase since 2017. Florida captured 21% of that activity, outpacing California, Texas, New York, and Arizona combined in foreign-buyer market share. Within Florida, the Volusia County corridor — Daytona Beach, Port Orange, Ormond Beach, New Smyrna Beach, DeLand, and Palm Coast — represents some of the most compelling value on the Atlantic Coast: direct beach access, a growing infrastructure base, and price points that remain well below South Florida luxury markets.
If you are a buyer from Canada, the United Kingdom, Colombia, Brazil, Germany, or anywhere else considering a purchase in this market, the opportunity is genuine. But so are the legal and financial complexities. As a Florida-licensed attorney, CIPS-designated broker, and a professional who closes international transactions regularly, I want to walk you through the three issues that matter most: FIRPTA withholding, mortgage financing, and the Florida closing process.
FIRPTA: What Every Foreign Buyer Needs to Understand Before You Close
FIRPTA — the Foreign Investment in Real Property Tax Act — is a federal withholding mechanism that most international buyers hear about for the first time at the closing table. That is far too late. Here is the essential framework:
Under 26 U.S.C. § 1445, when a foreign person sells U.S. real property, the buyer (or the buyer's closing agent) is required to withhold a percentage of the gross sales price and remit it to the IRS as a prepayment against the seller's potential capital gains tax liability. The standard withholding rate is 15% of the gross purchase price for properties sold for more than $1,000,000. For properties sold between $300,001 and $1,000,000 where the buyer intends to use the property as a personal residence, the rate drops to 10%. Transactions at or below $300,000 where the buyer will occupy the property as a primary or secondary residence may be entirely exempt from withholding.
Why does this matter to you as a buyer? Because the withholding obligation falls on the buyer, not the seller. If your closing agent fails to withhold correctly and remit to the IRS, the IRS can pursue the buyer for the unpaid amount. This is not a theoretical risk — it is a statutory one under 26 U.S.C. § 1461. You need a closing agent and, ideally, an attorney who understands this exposure intimately.
Additionally, if you are purchasing as a foreign buyer and you eventually sell, your buyer will be required to withhold from you under the same rules. Structuring your purchase correctly from day one — including how title is held — has long-term tax consequences that are worth planning for before you sign a contract.
Financing as a Foreign National: The Honest Picture
The good news: mortgage financing for international buyers has become meaningfully more accessible. According to NAR's most recent data, 33% of foreign buyers used mortgage financing in their U.S. purchases, up from 29% just five years ago. The bad news: it still requires significantly more documentation and patience than a domestic loan, and not every lender in Volusia County is equipped to handle it.
Foreign national mortgage programs — available through several portfolio lenders and international bank branches — typically require:
- A valid passport and visa documentation (or evidence of non-resident alien status)
- Proof of foreign income, often requiring translated statements, CPA letters, or employer verification
- A U.S. credit history, or a foreign credit report translated and assessed by the lender
- Down payments ranging from 25% to 40% of the purchase price, depending on the lender and loan type
- Reserves of six to twelve months of mortgage payments held in a verifiable account
It is worth noting that 47% of international buyers nationwide paid cash in the most recent reporting period — more than double the rate among all U.S. buyers. If you are in a position to purchase in cash, you gain a significant negotiating advantage in Daytona Beach and throughout Volusia County, particularly in competitive submarkets like Ormond Beach's golf corridor or the New Smyrna Beach historic district. That said, do not assume cash means a simpler closing. The due diligence, title, and legal obligations are identical.
The Florida Closing Process: Costs, Contracts, and What to Expect
Florida uses attorney or title company closings rather than escrow-based closings common in many other states. As a buyer, you should understand the following mechanics under Florida law and the standard FR/BAR As-Is Residential Contract for Sale and Purchase:
- Inspection period: Florida's standard contract provides a negotiable due diligence window — commonly 10 to 15 days — during which the buyer may cancel for any reason and receive the deposit back in full. This is your primary consumer protection. Use it.
- Documentary stamp taxes: Under Florida Statute § 201.02, the seller typically pays doc stamps on the deed at a rate of $0.70 per $100 of purchase price (Dade County is higher at $0.60 per $100 under a different formula, but Volusia County is $0.70). On a $450,000 purchase, that equals $3,150 — typically a seller cost, but worth confirming in your contract.
- Title insurance: Florida promulgated rates apply statewide under the Florida Department of Financial Services schedule. On a $450,000 purchase, owner's title insurance runs approximately $2,575. Confirm who pays in your contract — in Volusia County, the seller customarily pays for the owner's policy.
- Intangible tax on the mortgage: If you finance, Florida Statute § 199.133 imposes an intangible tax of $0.002 per dollar of the loan amount — a buyer cost. On a $300,000 loan, that is $600.
- Property taxes: Florida taxes are paid in arrears. As a buyer, you will receive a prorated credit at closing for the seller's portion of the year. Homestead exemption under Florida Statute § 196.031 is available only to permanent Florida residents — most foreign national buyers will not qualify, which affects your annual tax bill. Plan accordingly.
Special Note: Florida's Foreign Ownership Restrictions
Buyers from certain countries — specifically the People's Republic of China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria — should be aware that Florida Statute § 692.203 and § 692.204, enacted in 2023, impose restrictions on the purchase of agricultural land and properties near military installations or critical infrastructure. While these statutes do not prohibit most standard residential purchases in Daytona Beach by Chinese nationals or others on the restricted list, they require specific disclosures and, in certain cases, prohibit purchase altogether. This is an area where legal counsel is not optional — it is essential.
Local Market Context: Where International Buyers Are Looking in Volusia County
The communities drawing the most international buyer interest in our market include beachside Daytona Beach and Daytona Beach Shores (for direct Atlantic access), Port Orange (for turnkey suburban value), Ormond Beach (for upscale inventory and proximity to golf and the Tomoka State Park corridor), New Smyrna Beach (for its arts-driven walkable character), DeLand (for its historic downtown and investor potential near Stetson University), and Palm Coast (for newer construction and Flagler County crossover value). Each of these submarkets has distinct pricing dynamics, HOA structures, and rental regulation profiles that affect total return — factors I analyze routinely for international clients.
Work With a Broker Who Is Also Your Attorney
The intersection of federal tax law, Florida real estate statutes, international financing, and local market strategy is not a place to navigate alone or with a generalist agent. As a Florida Bar-licensed attorney and CIPS-designated broker at Realty Pros Assured, I bring legal precision and negotiation experience to every international transaction I handle — from initial consultation through recorded deed.
If you are considering a purchase in Daytona Beach or anywhere in Volusia County, I invite you to contact my office for a complimentary consultation. We will review your specific country of origin, visa status, financing options, and target property type before you make a single offer.
Contact Arthur Simpson, Esq., CIPS — Broker, Realty Pros Assured / Truestead Law, LLC — at arthursimpson.com. Your purchase begins with the right counsel.