Canadians Buying Property in Florida: Financing, Taxes, and Closing Explained

Florida Remains the Top Choice for Canadian Buyers — Here Is What You Need to Know Before You Close

If you are a Canadian citizen considering a Florida property purchase, you are in very good company. According to the National Association of Realtors' most recent international buyer data (covering April 2024 through March 2025), Canadians accounted for 18% of all international purchases in Florida and invested $1.9 billion in the state — a 52% increase over the prior year. Florida itself captured 21% of all international U.S. real estate activity, extending a streak of more than 15 consecutive years as the top destination for foreign buyers.

For Canadians eyeing communities along the Atlantic coast — Daytona Beach, Port Orange, Ormond Beach, New Smyrna Beach, Palm Coast, or DeLand — the opportunity is real. But so is the complexity. As a Florida attorney and licensed broker with the Certified International Property Specialist (CIPS) designation, I work specifically with cross-border buyers to make sure the legal, tax, and financing pieces are handled correctly from day one.

Why So Many Canadians Pay Cash — and What It Means for You

NAR Chief Economist Lawrence Yun noted that, due to persistently elevated mortgage rates, 47% of international buyers paid cash — compared to just 28% of all U.S. buyers. Among Canadian purchasers specifically, the all-cash rate is even higher. This is not merely a preference; it often reflects a strategic decision to sidestep the complexity of qualifying for a U.S. mortgage as a non-resident.

That said, U.S. financing is available to Canadian buyers through what lenders call "foreign national" or "non-resident alien" mortgage programs. These loans typically require:

• A down payment of 25% to 30% of the purchase price
• Six to twelve months of reserves held in a U.S. or Canadian bank account
• Verification of income using Canadian tax returns (T1 Generals), pay stubs, or business financials
• A valid Canadian passport and, in some cases, a U.S. Individual Taxpayer Identification Number (ITIN)

Interest rates on foreign national loans typically run 0.5% to 1% above conventional rates. If you are purchasing a condominium in Daytona Beach or a single-family home in Port Orange, confirm early that the property and its HOA meet lender eligibility requirements. Many lenders impose restrictions on condo-hotel projects and short-term rental communities.

FIRPTA: The Tax Rule Every Canadian Buyer Must Understand

The Foreign Investment in Real Property Tax Act (FIRPTA), codified at 26 U.S.C. Section 1445, is the federal law that most surprises Canadian buyers. It applies not at purchase but at sale — yet understanding it before you buy is essential to your investment strategy.

When a non-U.S. person sells Florida real estate, the buyer (or their closing agent) is required by law to withhold 15% of the gross sales price and remit it to the IRS. This is a withholding mechanism, not a final tax. If your actual capital gains tax liability is lower than the amount withheld, you file a U.S. tax return and claim a refund. If it is higher, you owe the difference.

Key FIRPTA exceptions worth knowing:

• If the sales price is $300,000 or less and the buyer signs an affidavit stating the property will be used as a personal residence, withholding is reduced to zero
• If the sales price is between $300,001 and $1,000,000 and the buyer provides the same affidavit, withholding drops to 10%
• Obtaining an IRS withholding certificate prior to closing can reduce or eliminate withholding based on your actual anticipated gain

I strongly recommend that Canadian buyers engage a U.S.-licensed CPA or tax attorney before purchasing to set up the proper ownership structure and plan for FIRPTA obligations at resale.

Florida Closing Costs: What Canadian Buyers Should Budget

Florida does not use attorneys to conduct closings in the same way Canada does, but as an attorney-broker I review every contract and closing disclosure on behalf of my clients. Here is a realistic cost picture for a purchase in Volusia County:

• Documentary stamp tax on the deed: Florida imposes $0.70 per $100 of the purchase price under Florida Statute Section 201.02. On a $500,000 purchase, that equals $3,500, paid by the seller in most Volusia County transactions but negotiable
• Title insurance (owner's policy): Florida uses a promulgated rate filed with the Department of Financial Services. On a $500,000 property, the owner's title policy runs approximately $2,575. The seller customarily pays in Volusia County
• Recording fees: Charged by the Volusia County Clerk, typically $10 for the first page of the deed and $8.50 per additional page under Florida Statute Section 28.24
• Lender's title policy (if financing): Issued simultaneously with the owner's policy for a modest additional premium, typically $25 to $100
• Property taxes: Florida real property taxes are paid in arrears. At closing, the seller credits the buyer for their prorated share of the year's taxes. Volusia County's effective millage rate varies by municipality; budget approximately 1.0% to 1.3% of assessed value annually
• ITIN application and U.S. tax setup: If you do not already have an ITIN (IRS Form W-7), budget time and professional fees to obtain one before or shortly after closing

The Florida Purchase Contract: What International Buyers Must Watch

Most Volusia County transactions use the Florida Realtors/Florida Bar "AS IS" Residential Contract for Sale and Purchase. A few provisions are especially important for Canadian buyers:

• Inspection period: The standard contract allows the buyer a defined inspection period (typically 10 to 15 days) to investigate the property and cancel for any reason. Do not waive this right, particularly for older coastal properties in Daytona Beach or New Smyrna Beach where wind mitigation and flood zone issues are common
• FIRPTA affidavit requirement: The contract requires the seller to execute a FIRPTA affidavit at closing. If the seller is also a foreign national, your closing agent must withhold on their behalf
• Foreign buyer disclosure: Florida Statute Section 692.203 imposes restrictions on certain foreign buyers from specified countries (China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria) acquiring property within ten miles of military installations or critical infrastructure. Canadians are not subject to this restriction
• Financing contingency language: If you are using a foreign national loan, ensure the financing contingency accurately reflects your lender's timeline and conditions. Pre-approval letters from Canadian institutions are not sufficient; obtain a U.S. lender's conditional approval before going under contract

Why Daytona Beach and Volusia County Make Sense for Canadian Investors

While Miami and Fort Lauderdale attract the largest share of international dollars, Volusia County offers Canadian buyers something the south Florida market increasingly cannot: value. Median prices in Port Orange, Ormond Beach, and DeLand remain meaningfully below statewide medians, with strong short-term rental demand driven by Daytona's motorsport events, Bike Week, and year-round beach tourism. Palm Coast, just north in Flagler County, has emerged as one of Florida's fastest-growing markets and falls within our service area.

The combination of relative affordability, direct flight access from Toronto and Montreal to Daytona Beach International Airport, and a well-established Canadian snowbird community makes this corridor one of the most practical choices for Canadian buyers who want Florida sun without Miami prices.

Work With an Attorney-Broker Who Understands Both Sides of the Transaction

Buying Florida real estate as a Canadian citizen involves layers that a standard residential transaction does not: federal withholding law, foreign national lending, currency exchange timing, and ownership structure decisions that affect your heirs. Getting those details right from the start protects your investment and saves significant money at resale.

As a Florida-licensed attorney (Truestead Law, LLC), a licensed broker, and a Certified International Property Specialist, I offer Canadian buyers a single point of accountability across both the legal and real estate sides of the transaction. Whether you are exploring a condominium on Daytona Beach's oceanfront, a pool home in Port Orange, or a short-term rental in the DeLand corridor, I can guide you through every step.

Contact Arthur Simpson, Esq., CIPS at arthursimpson.com to schedule a confidential consultation. International buyers are welcome to connect by phone, video call, or email — wherever you are in Canada, the conversation starts here.