Florida Is Still the World's Favorite Market — and Daytona Beach Is Earning Its Share
If you are purchasing a home in Daytona Beach, Port Orange, Ormond Beach, New Smyrna Beach, Palm Coast, or DeLand as a foreign national, you are in excellent company — and you are making a well-timed move. According to the National Association of Realtors® 2025 Profile of International Transactions, foreign buyers purchased $56 billion worth of U.S. existing homes in the twelve months ending March 2025, a 33.2% increase over the prior year. Florida alone captured 21% of all international buyer activity — more than $11.8 billion in sales — maintaining its position as the top destination for global buyers for over fifteen consecutive years. Florida Realtors® data for the period ending July 2025 confirms the momentum: international transaction counts rose 50% year over year, and total dollar volume climbed to $10.4 billion.
Daytona Beach and the broader Volusia County corridor offer something that Miami and Orlando can no longer credibly promise: relative affordability, genuine Atlantic beachfront access, a growing infrastructure base, and a market that has not yet been fully priced out of reach. Whether you are purchasing a primary residence, a vacation property, or an income-producing rental, understanding the legal and financial framework before you sign anything is not optional — it is essential.
FIRPTA: The Tax Withholding Rule Every International Buyer Must Understand
The Foreign Investment in Real Property Tax Act — commonly called FIRPTA — is a federal tax withholding mechanism governed by 26 U.S.C. § 1445. It is one of the most misunderstood aspects of U.S. real estate transactions involving foreign parties, and the confusion flows in both directions: sellers worry about it, and buyers often do not realize they bear legal responsibility for it.
Here is the core rule: when a foreign person sells U.S. real property, the buyer is required to withhold a percentage of the gross sales price and remit it to the IRS. The current standard withholding rate is 15% of the gross purchase price. On a $400,000 condominium in Daytona Beach Shores, that is $60,000 withheld at closing — regardless of what the seller actually owes in tax.
As a buyer, this matters to you for two reasons. First, if your closing agent fails to withhold properly and remit to the IRS, you — the buyer — may be held liable for the tax. Second, understanding FIRPTA helps you negotiate more effectively, because sellers who are foreign nationals often factor withholding into their pricing expectations or request a withholding certificate (IRS Form 8288-B) to reduce or eliminate the withholding amount based on actual gain. Reduced withholding applications require IRS approval before closing and typically take 90 days, so planning matters.
Important exemptions exist. If you are purchasing a property for $300,000 or less as your personal residence and you intend to reside there for at least 50% of the time during each of the first two twelve-month periods after closing, FIRPTA withholding does not apply. This exemption — codified under 26 U.S.C. § 1445(b)(5) — is frequently relevant to international buyers purchasing in our market who plan to use the property personally. Your closing agent and legal counsel must document this exemption properly.
Financing as a Foreign National in Volusia County
One of the most significant trends in the NAR data is this: 47% of international buyers paid cash, compared to 28% of domestic buyers. That statistic reflects both the financial profile of many international purchasers and the very real challenges of securing U.S. mortgage financing without a domestic credit history, Social Security number, or U.S.-based employment documentation.
That said, financing is available — and increasingly accessible. Foreign national mortgage programs have expanded considerably, and several lenders active in the Daytona Beach market offer loans to non-resident buyers under the following general parameters:
- Down payment: Typically 25–30% of purchase price for foreign nationals without U.S. credit history
- Documentation: Passport, visa or residency documentation, two years of foreign tax returns or equivalent income documentation, and three to six months of bank statements
- Interest rates: Foreign national loans generally price 0.5–1.5% above conventional conforming rates, though this varies significantly by lender and loan structure
- ITIN loans: Buyers with an Individual Taxpayer Identification Number rather than a Social Security number can access a growing pool of ITIN mortgage products
If you are financing, begin your lender conversations at least 60–90 days before your intended closing date. Pre-approval documentation requirements for foreign nationals are more extensive, and processing timelines are longer than domestic transactions.
Florida Contract Mechanics and Closing Costs: What to Budget
Florida residential transactions are governed by the FAR/BAR As-Is Residential Contract for Sale and Purchase in most cases. This contract is enforced under Florida Statute § 689.261 and contains inspection periods, financing contingencies, and closing timelines that international buyers — particularly those purchasing remotely — must understand before executing.
The standard inspection period in our market runs 15 days from contract execution, during which you may inspect the property and cancel for any reason. If you are purchasing from outside the U.S., work with your agent to arrange licensed inspections — including wind mitigation, four-point, and WDO (termite) inspections — promptly. Missing the inspection deadline has real consequences under Florida law.
Closing costs for buyers in Volusia County typically include:
- Title insurance (owner's policy): Calculated on a promulgated rate under Florida Statute § 627.7711; on a $400,000 purchase, expect approximately $2,575
- Documentary stamp tax on the deed: $0.70 per $100 of purchase price, paid by the seller under standard contract terms — but negotiable
- Intangible tax on a new mortgage: $0.002 per dollar of loan amount, paid by buyer (e.g., $560 on a $280,000 loan)
- Documentary stamp tax on the note: $0.35 per $100 of loan amount if financing
- Title search, settlement, and closing fees: Typically $500–$1,200 depending on the title company
- FIRPTA withholding (if applicable): 15% of gross purchase price, remitted to IRS at closing
Property taxes in Volusia County are assessed and paid in arrears. As a buyer, you will receive a proration credit at closing for the seller's portion of the current tax year. Non-resident foreign buyers are not eligible for Florida's Homestead Exemption under Article VII, Section 6 of the Florida Constitution, which means your annual tax bill will not receive the $50,000 assessed value reduction available to permanent Florida residents.
Working With an Attorney-Broker in Daytona Beach Changes the Transaction
Florida is not an attorney-state for closings — but that does not mean legal representation is irrelevant. It means the decision to work with counsel who is also a licensed real estate broker is entirely your choice, and it is one of the most consequential decisions an international buyer can make. When your agent is also a Florida Bar-admitted attorney with the CIPS (Certified International Property Specialist) designation, FIRPTA compliance, contract review, title analysis, and negotiation strategy are all handled within a single professional relationship — not parceled out across multiple advisors who may never speak to one another.
At Realty Pros Assured, we work regularly with buyers from Latin America, Europe, Canada, and Asia purchasing throughout the Volusia County corridor. We understand the documentation challenges, the time-zone realities of remote transactions, and the legal precision that cross-border closings demand.
If you are considering purchasing in Daytona Beach, Port Orange, Ormond Beach, New Smyrna Beach, Palm Coast, or DeLand as a foreign national, contact Arthur Simpson, Esq., CIPS at arthursimpson.com to schedule a confidential consultation. Your purchase deserves both a broker who knows this market and an attorney who knows the law.