New Florida Real Estate Law: Foreign Ownership Limits and Penalties

Florida’s new foreign ownership real estate law, Senate Bill 264, took effect July 1, 2023, and bars people and entities tied to seven foreign governments from buying certain real property in the state. It restricts agricultural land purchases statewide, prohibits ownership within 10 miles of military bases and critical infrastructure, and imposes an especially broad ban on buyers linked to the People’s Republic of China. Every real estate closing in Florida now requires a sworn buyer’s affidavit, and foreign owners who held property before the law took effect must register with the state or face a $1,000-per-day penalty.

Who the Law Actually Restricts

The restrictions do not apply to every non-citizen buyer. They target a specific legal category called a “foreign principal,” which the statute defines in several layers.¹ A foreign principal includes:

Officials of the government of a restricted country.
Members or subdivisions of a political party in a restricted country.
Any business, partnership, or organization formed under the laws of a restricted country or headquartered there, including subsidiaries.
Any individual whose permanent home is in a restricted country, unless that person is a U.S. citizen or lawful permanent resident.
Any combination of the above holding a controlling interest in an LLC, trust, corporation, or other entity used to own Florida real property.

That last category is the one that catches people off guard. Setting up a Florida LLC does not sidestep the law if the people behind it fall into one of the other categories. The statute looks through the entity to the actual owners.

U.S. citizens and lawful permanent residents are exempt, even if they were originally from a restricted country. The law targets domicile and affiliation, not ethnicity or ancestry. Passive investors who own less than 5 percent of publicly traded stock in a company that happens to hold Florida real estate do not count as holding a prohibited interest.¹

The seven “foreign countries of concern” named in the statute are the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of North Korea, the Republic of Cuba, the Venezuelan regime of Nicolás Maduro, and the Syrian Arab Republic.¹ Agencies and entities under the significant control of those governments are also covered.

What Property Is Off Limits

Agricultural Land Anywhere in Florida

Foreign principals from any of the seven countries cannot buy agricultural land anywhere in Florida. “Agricultural land” means property classified as agricultural by the county property appraiser. There is no acreage minimum, no proximity requirement, and no exception for small parcels. If the land carries an agricultural classification, a foreign principal cannot acquire it.²

Those who already owned agricultural land before July 1, 2023, may keep it but cannot buy more. A narrow exception lets a foreign principal come into agricultural land after that date through inheritance, enforcement of a security interest, or debt collection, but the land must be sold or transferred within three years.²

Property Near Military Bases and Critical Infrastructure

A separate section prohibits foreign principals from owning real property within 10 miles of any military installation or critical infrastructure facility.³ A “military installation” means any base, camp, post, station, or similar facility covering at least 10 contiguous acres under Department of Defense jurisdiction.¹ Florida has more than 20 major military installations, so the 10-mile zones cover substantial portions of the state.

Critical infrastructure facilities covered by the law include chemical manufacturing plants, refineries, electrical power plants, water and wastewater treatment plants, liquid natural gas terminals, telecommunications central switching offices, gas processing plants, and seaports, airports, and spaceport territories, provided the facility uses security measures like fences or guard posts to keep out unauthorized people.¹

Owners who held property in these zones before July 1, 2023, can keep it but cannot acquire more. A limited exception lets a foreign principal buy one residential property of up to two acres, but only if the parcel is more than five miles from any military installation and the buyer holds a valid non-tourist U.S. visa or has been granted asylum.³

The Broader China Ban

Section 692.204 goes further and specifically targets connections to the People’s Republic of China. Chinese foreign principals cannot own or acquire any real property in Florida, not just agricultural land or property near military bases.⁴ The ban reaches the Chinese government, the Chinese Communist Party, Chinese political parties and their members, entities organized in China or headquartered there, and individuals domiciled in China who are not U.S. citizens or permanent residents.

A narrow exception mirrors the residential carve-out above: a Chinese foreign principal who is a natural person may buy one residential property of up to two acres if the parcel is more than five miles from any military installation and the buyer holds a non-tourist U.S. visa or asylum documentation. The purchase must be in the visa holder’s name. Tourist visas do not qualify. A B-1 or B-2 visitor visa is not enough. Chinese foreign principals who acquired property before July 1, 2023, can keep it but cannot buy more, and anyone who takes property after that date through inheritance or debt collection must sell within three years.⁴

What Every Buyer Signs at Closing

Every buyer of real property in Florida, regardless of nationality, must sign a sworn affidavit at closing attesting that the purchase complies with Part III of Chapter 692. The Florida Real Estate Commission adopted a standardized form by administrative rule, and it is typically provided by the closing agent.⁵ The affidavit requires the buyer to disclose citizenship status and any connections to the restricted countries. It is signed under penalty of perjury and notarized.

So yes, even U.S. citizens with no connection to any restricted country will see this document at the closing table. Completing it accurately is straightforward for most buyers; it adds one more page to the closing stack. Lying on it is a different matter. A knowingly false statement can be prosecuted as perjury by false written declaration, which carries heavier consequences than the underlying property violation.

Registration and the $1,000-Per-Day Penalty

Foreign principals who owned property before July 1, 2023, did not have to sell, but they do have to register with the state. The agency depends on the type of property:

Agricultural land: register with the Florida Department of Agriculture and Consumer Services. The original deadline was January 1, 2024.²
Property near military installations or critical infrastructure: register with the Florida Department of Commerce. The original deadline was December 31, 2023, with a grace period through January 31, 2024.³

Foreign principals who acquire property after July 1, 2023, under one of the limited exceptions must register within 30 days of the acquisition.³ Late registration triggers a civil penalty of $1,000 per day, and the state can place a lien on the unregistered property for any unpaid penalties.² A few weeks of procrastination can translate into a five-figure bill. This is where most of the real-world enforcement pressure lands.

Registration itself requires basic property information: the owner’s name, the property address, the parcel identification number from the county property appraiser, and the legal description from the deed. Both agencies maintain online portals for submission.

Seller and Agent Duties

Sellers and real estate professionals have their own compliance obligations. The sales contract must include a notice informing the buyer that the transaction is subject to the foreign-ownership provisions of Chapter 692. The seller is not required to investigate the buyer’s background or citizenship, but the notice must be there. An agent who fails to include it risks disciplinary action from the Florida Real Estate Commission, including fines or license suspension. Most title companies and closing agents now build both the disclosure and the buyer’s affidavit into their standard closing packages.

Penalties for Violations

For property near military installations or critical infrastructure, a foreign principal who buys in violation of the law commits a second-degree misdemeanor. A seller who knowingly sells to a disqualified buyer also commits a second-degree misdemeanor.³ Under Florida’s general penalty structure, a second-degree misdemeanor carries up to 60 days in jail.⁶

Property acquired in violation of the law is subject to forfeiture to the state through a civil proceeding brought by the attorney general. The state can seize the property regardless of what the owner paid. The $1,000-per-day civil penalty for failing to register creates a separate and potentially larger financial exposure than the criminal fines.

Where the Law Stands in Court

The law has faced a constitutional challenge in Shen v. Simpson, where plaintiffs argued SB 264 is preempted by the federal Foreign Investment Risk Review Modernization Act and violates the Equal Protection Clause. The Eleventh Circuit initially granted a partial preliminary injunction protecting two individual plaintiffs.

On November 4, 2025, the Eleventh Circuit issued a 2-1 decision that largely favored the state. The court found the main plaintiffs lacked standing to challenge the purchase restriction because they are domiciled in Florida rather than China, which placed them outside the scope of the law’s prohibition.⁷ It also upheld the denial of a preliminary injunction against the registration and affidavit requirements, finding the plaintiffs were unlikely to succeed on the merits.

The practical result: the law remains in full effect statewide. Future challenges by plaintiffs with clearer standing could revisit the constitutional questions, but for now, buyers, sellers, and agents should treat the restrictions as fully enforceable.

Related Federal Rules That May Also Apply

Florida’s law does not displace federal rules; it stacks on top of them. The Committee on Foreign Investment in the United States (CFIUS) has its own authority to review real estate transactions by foreign persons near military installations. In November 2024, the Treasury Department expanded CFIUS coverage to include transactions within one mile of 40 additional military installations and within 100 miles of 19 more.⁸ CFIUS review is mostly voluntary and applies to all foreign persons, not just the seven countries Florida targets. Treasury noted that a “categorical prohibition on real estate transactions by foreign persons would not be consistent with CFIUS’s statutory authority or the open investment policy of the United States.”⁹ Both regimes can apply to the same transaction.

Starting March 1, 2026, LLCs, corporations, partnerships, and trusts purchasing residential property may need to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) within 30 days of closing. The filing obligation generally falls on the settlement agent and adds another layer of transparency for entity-based purchases, particularly all-cash deals.

Financing has also tightened for some foreign buyers. As of May 25, 2025, the Department of Housing and Urban Development eliminated FHA-insured loan eligibility for non-permanent resident aliens.¹⁰ A foreign national who qualifies for one of Florida’s narrow residential exceptions may still find federally backed financing harder to secure.

1
The Florida Legislature. Florida Statutes Chapter 692 – Conveyances by or to Particular Entities
2
Florida Senate. Florida Statutes 692.202 – Purchase of Agricultural Land by Foreign Principals Prohibited
3
Florida Senate. Florida Statutes 692.203 – Purchase of Real Property on or Around Military Installations or Critical Infrastructure Facilities by Foreign Principals Prohibited
4
Florida Senate. Florida Statutes 692.204 – Purchase or Acquisition of Real Property by the People’s Republic of China Prohibited
5
Legal Information Institute. Florida Admin Code Ann R 61J2-10.200 – Buyers Affidavits Form
6
Florida Senate. Florida Statutes 775.082 – Penalties Applicability of Sentencing Structures Notification Requirements
7
United States Court of Appeals for the Eleventh Circuit. Shen v Simpson, Case No 23-12737
8
U.S. Department of the Treasury. Treasury Issues Final Rule Expanding CFIUS Coverage of Real Estate Transactions Around More Than 60 Military Installations
9
Federal Register. Definition of Military Installation and the List of Military Installations in the Regulations
10
U.S. Department of Housing and Urban Development. Title I Letter 490 – Revisions to Residency Requirements