You can buy a house in Florida without being a resident. The state imposes no residency requirement on property buyers, so a U.S. citizen living in another state or a foreign national can purchase and own Florida real estate on roughly the same legal footing as a local. What changes is the financing you’ll qualify for, the property tax bill you’ll pay year after year, and, if you’re a foreign national, a layer of federal tax rules that residents never encounter.
One Group That Faces Real Restrictions
Before anything else, a boundary. Florida Senate Bill 264, effective July 1, 2023, restricts “foreign principals” from seven countries (China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria) from buying agricultural land or any property within 10 miles of a military installation or critical infrastructure such as airports, power plants, seaports, and spaceport territories.1Florida Senate. Florida Senate Bill 264 A narrow carve-out lets natural persons from those countries who hold a current non-tourist visa or asylum buy one residential property of up to two acres, as long as it isn’t within five miles of a military installation.2Florida Senate. Florida Statutes Chapter 692 Section 204 The Eleventh Circuit declined to block the law in late 2025, so it remains in effect.3United States Court of Appeals for the Eleventh Circuit. Opinion No. 23-12737
If you’re a U.S. citizen from any other state, none of this touches you. The rest of this article covers the practical differences you’ll actually run into.
Financing Looks Different for Non-Residents
Out-of-state U.S. buyers generally qualify for the same conventional mortgage products Florida residents use, but the lender will classify the house as a second home or an investment property rather than a primary residence. That classification drives the terms. Expect to put at least 10% to 25% down, compared with as little as 3% on a primary residence, and expect a slightly higher interest rate, because the lender sees more default risk when the borrower doesn’t live in the home.
Foreign buyers have a harder path. Many mainstream lenders won’t underwrite anyone without a U.S. credit history, Social Security number, or domestic income documentation. Some banks and credit unions offer “portfolio loans” they hold in-house instead of selling on the secondary market, which gives them room to look at a foreign file. Down payments in that market typically run 30% to 50%, interest rates are higher, and the paperwork is heavier. Opening a U.S. bank account before you start shopping is worth doing early; you’ll need one for earnest money, mortgage payments, and ongoing expenses.
If You’re Foreign, Get an ITIN
Foreign nationals without a Social Security number need an Individual Taxpayer Identification Number to close and to meet federal tax obligations. File Form W-7 with the IRS, select reason code “h” (other), and write “Exception 4” in the space provided, which lets you apply in connection with a property transaction outside the normal filing season.4Internal Revenue Service. ITIN Guidance for Foreign Property Buyers/Sellers The standard process requires mailing your original passport to the IRS. If that’s uncomfortable, work with a Certified Acceptance Agent, who can verify your documents in person and submit certified copies so you keep your passport.5Internal Revenue Service. ITIN Acceptance Agent Program
Property Tax Is the Biggest Ongoing Difference
Florida has no state income tax, and property taxes are the trade-off. On an equivalent home, a non-resident pays more than a permanent resident, and the gap widens over time.
Permanent residents who make a Florida property their primary home can claim a homestead exemption that shields the first $25,000 of assessed value from all property taxes, with an additional exemption on assessed value between $50,000 and roughly $76,400 (that upper band is $26,411 for 2026 after the annual inflation adjustment) applying to everything except school district taxes.6Florida Department of Revenue. Additional Homestead Exemption Adjustment Non-residents cannot claim any of it, because the exemption requires the property to be your permanent residence as of January 1.7Florida Senate. Florida Statutes Chapter 196 Section 031 – Exemption of Homesteads
The second piece is the assessment cap. Homesteaded properties benefit from “Save Our Homes,” which limits annual assessment increases to 3% or the inflation rate, whichever is lower. Non-homesteaded properties face a 10% annual cap instead, so your assessed value climbs much faster in a rising market. Over a decade of appreciation, that difference compounds into a substantial gap in tax bills between a resident and a non-resident owning otherwise identical homes.
Tax bills are mailed by November 1 and become delinquent April 1 of the following year. Florida offers early-payment discounts: 4% off in November, scaling down to 1% in February, and full price in March. Worth capturing on a larger bill.
Closing From a Distance
In Florida, title companies run closings rather than attorneys, which is unusual compared with many states. The title company handles the title search, document preparation, escrow, and the closing itself. If you’re buying from out of state or overseas, work with a local agent who regularly handles non-resident transactions; they’ll know which title companies run remote closings cleanly and which lenders will actually work with your profile. Florida authorizes electronic notarization under Section 117.021 of the Florida Statutes, and remote online notarization is available for buyers who can’t attend in person.8The Florida Legislature. Florida Statutes Section 117.021 – Electronic Notarization
Two transfer-related taxes will show up on your closing statement. The documentary stamp tax runs $0.70 per $100 of the purchase price in every county except Miami-Dade, which charges $0.60 per $100 plus a $0.45-per-$100 surtax on properties other than single-family dwellings.9Florida Department of Revenue. Documentary Stamp Tax On a $400,000 purchase, that comes to $2,800 in most counties. If you’re financing, you’ll also pay a nonrecurring intangible tax of $0.002 per dollar of mortgage amount, so a $300,000 mortgage generates a $600 charge.
If You Rent the Property Out
Rental income from a Florida property is subject to federal income tax wherever you live. U.S. citizens report it on their regular federal return and deduct ordinary expenses: mortgage interest, property taxes, insurance, management fees, and depreciation. With no state income tax, there’s no state-level filing on top.
Foreign owners have a decision to make. By default, gross rental income paid to a nonresident alien is subject to a flat 30% withholding with no deductions. That’s 30% of every dollar collected, not 30% of profit. Nearly every foreign owner is better off filing an election under IRC Section 871(d) to treat the rental activity as “effectively connected” with a U.S. trade or business. Make that election and you report net rental income on Form 1040-NR at graduated rates and deduct ordinary expenses, which almost always produces a dramatically lower bill.10Internal Revenue Service. Nonresident Aliens – Real Property Located in the U.S.
Short-term rentals of six months or less add another layer. Florida’s 6% state sales tax applies to the rental payments, plus a local tourist development tax ranging from 2% to 7% depending on the county.11Florida Department of Revenue. Local Option Transient Rental Tax Rates In popular markets like Osceola or Broward County, the combined rate reaches 12% or more. You register with the Florida Department of Revenue and remit these taxes directly; booking platforms often handle the state portion but not always the local one.
FIRPTA Withholding When a Foreign Owner Sells
This one applies only to foreign owners, not U.S. citizens from other states. When a foreign person sells U.S. real property, the buyer is required to withhold 15% of the gross sale price and send it to the IRS under the Foreign Investment in Real Property Tax Act.12Office of the Law Revision Counsel. 26 USC 1445 – Withholding of Tax on Dispositions of United States Real Property Interests That’s 15% of total price, not 15% of profit. On a $500,000 sale, $75,000 goes to the IRS at closing.
Two exceptions soften that:
- If the buyer will use the home as a personal residence and the price is $300,000 or less, no FIRPTA withholding applies. The buyer must plan to occupy the home at least 50% of the days it’s used during each of the first two years after purchase.13Internal Revenue Service. Exceptions From FIRPTA Withholding
- For buyer-occupied residences priced between $300,001 and $1,000,000, the withholding rate drops to 10%.14Internal Revenue Service. FIRPTA Withholding
If your actual tax liability will be lower than the withheld amount, apply for a withholding certificate on Form 8288-B before closing. The IRS generally acts within 90 days of receiving a complete application, so start early.15Internal Revenue Service. Form 8288-B – Application for Withholding Certificate Excess withholding is refunded when you file, but that refund can take months. Getting the certificate approved in advance keeps a six-figure sum from being parked with the IRS.
Estate Tax Hits Foreign Owners Hard
This is one of the most overlooked risks of foreign ownership. U.S. citizens and permanent residents currently receive a federal estate tax exemption of more than $13 million per person. Nonresident aliens get a credit of $13,000 against estate tax on U.S.-situs assets, which shelters only $60,000 of property from the 40% federal estate tax rate.16Office of the Law Revision Counsel. 26 USC 2102 – Credits Against Tax
Real estate located in the United States counts as U.S.-situs property. If a nonresident alien owns a $500,000 Florida condo and passes away, the taxable estate is $440,000, and the estate tax bill runs roughly $176,000. Tax treaties between the United States and some countries provide more generous exemptions, so the actual exposure depends on your citizenship. Getting professional tax and estate planning advice before you buy is not optional here.
Insurance and Keeping the Property Standing
Florida’s insurance market is among the most expensive and volatile in the country, and non-residents face the same conditions as locals. Windstorm or hurricane coverage is essential and often written as a separate policy or endorsement. If your property sits in a FEMA Special Flood Hazard Area and you have a federally backed mortgage, flood insurance through the National Flood Insurance Program or a private carrier is mandatory. Even outside those zones, flood coverage is worth considering given Florida’s geography.
Premiums have climbed sharply as major insurers have pulled back from the state. Shop early, budget generously, and know that Citizens Property Insurance Corporation, the state-backed insurer of last resort, has eligibility limits and rate structures that change annually. Get quotes during the purchase process, not after closing.
If you won’t be living in the home full-time, a professional property manager earns the fee quickly. A good one handles tenant screening, rent collection, maintenance, and routine inspections that catch small problems before they turn expensive. Florida’s humidity, sun, and active pest environment mean deferred maintenance costs more here than in drier states. Even for a home you don’t rent out, arrange regular landscaping, pest control, and periodic inspections.
Extra Diligence if You’re Buying a Condo
Condos are a common non-resident purchase, and Florida law gives you specific disclosure protections. In any resale, the seller must provide a current copy of the declaration of condominium, the association’s articles and bylaws, the most recent annual financial statement and budget, and the association’s most recent structural integrity reserve study. If a milestone inspection has been completed, a summary of the report must be handed over as well.
Read the reserve study and the latest financial statement carefully. Associations with underfunded reserves tend to impose special assessments, which can run into tens of thousands of dollars per unit. As a non-resident owner, you won’t be at board meetings or in the hallway conversations where local owners pick up early warnings. The documents are your warning system; use them.