U.S. Taxes for Foreign Owners of Florida Property

Owning Florida property as a non-U.S. person comes with U.S. tax rules worth understanding up front. None are dealbreakers — but planning saves money. Here's the overview (not tax advice — work with a cross-border CPA).

Rental income

If you rent the property, the income is U.S.-taxable and must be reported (you'll need an ITIN). With the right election, you're generally taxed on net income (after expenses and depreciation) rather than gross — a meaningful difference a CPA sets up.

Selling — FIRPTA

When a foreign owner sells, FIRPTA requires the buyer to withhold a portion of the sale price toward the seller's U.S. tax. It's a withholding mechanism, reconciled on a U.S. return — and often reducible with planning.

U.S. estate tax exposure

This is the one many overlook: U.S. real estate owned by a non-U.S. person can be subject to U.S. estate tax, and non-residents get a much lower exemption than U.S. citizens. Ownership structure (an entity or trust) can help mitigate — this is where an attorney and CPA matter.

Plan it before you buy

How you take title affects taxes, liability, and your heirs. As a CIPS attorney-REALTOR®, we coordinate with your cross-border CPA so the structure fits your goals from day one. Talk through your situation →

Keep reading: How Much Does It Cost to Sell a House in Florida? · Florida Homestead Exemption: How to Lower Your Property Taxes · Buying a Beachside Home in Volusia County: What to Know · All insights →