Buying a House in Miami as a Foreigner: What Nobody Explains

It can be done. But there are things worth knowing before you take the first step.

Miami has something few cities in the world can offer: it operates in two languages, it protects your wealth in dollars, it has no state income tax, and it allows you to own property regardless of your nationality or immigration status.

That’s why thousands of people from Latin America, Europe, and the rest of the world buy property here every year. Some want to live. Others want to invest. Others want both.

But between the excitement and closing day, there’s a path full of details nobody explains until you’re already in the process — and some of those details can cost you tens of thousands of dollars if you don’t know them in time.

First things first: yes, you can buy

There is no law in the United States requiring you to be a citizen, resident, or visa holder to own property. Anyone in the world can buy a house, an apartment, or land in Florida. The title is recorded in your name and is legally yours, regardless of your passport.

You can buy with a tourist visa, a work visa, no visa, or as a permanent resident. Your immigration status does not affect your right to own property.

What does change depending on your situation is how you finance the purchase, how much you pay in taxes, and what legal structure makes sense for ownership.

Buying in cash vs. financing: two different worlds

If you have the full amount to pay cash, the process is relatively simple. You need a passport, proof of funds, and a closing team (real estate attorney, title company). The process can take as little as 30 days from offer to keys.

If you need financing, the process is more complex but entirely possible. There are loans designed specifically for foreign buyers called Foreign National Loans. These aren’t offered by every bank — they’re handled by specialized lenders and some international banks with a presence in Florida.

Typical requirements for a Foreign National Loan in 2026: a valid passport, proof of income from your home country (tax returns, financial statements, or an employer letter), 6 to 12 months of bank statements, and a down payment of 25% to 40% of the property price.

Interest rates are higher than conventional loans for residents, generally 1.5% to 3% above. And the approval process can take longer because international document verification is more detailed.

You don’t need U.S. credit history for a Foreign National Loan. The lender evaluates your ability to pay using documentation from your country. That’s a huge advantage for someone coming from abroad.

The most expensive mistake: not understanding FIRPTA before you buy

This is where most of the information available online falls short. Everyone tells you how to buy, but almost nobody explains what happens when you sell.

FIRPTA (Foreign Investment in Real Property Tax Act) is a federal law that applies when a foreign person sells property in the United States. It requires the buyer of your property to withhold 15% of the gross sale price and send it directly to the IRS, as an advance on the taxes you may owe on the gain.

Read that again: 15% of the total sale price, not the profit.

If you bought an apartment for $400,000 and sell it for $500,000, the buyer withholds $75,000 (15% of $500,000) and sends it to the IRS. You receive $425,000, not $500,000. Later, when you file your U.S. tax return, the IRS calculates how much you actually owe on the gain and refunds the difference. But that refund can take months.

Why does this matter before you buy? Because the legal structure you use to purchase the property can significantly change your FIRPTA exposure when you sell. A real estate attorney experienced in international transactions can help you plan from the start to minimize the tax impact at the time of sale. Planning this after you buy is much harder and more expensive.

Should you buy personally or through an LLC?

This is one of the most common questions among foreign buyers, and the answer isn’t as simple as “always use an LLC.”

Buying in your personal name is simpler, cheaper to manage, and sufficient for most situations where the property is for personal use.

Buying through an LLC (Limited Liability Company) offers liability protection and, in some cases, tax advantages. If someone is injured on your property and sues, the LLC limits the exposure to the company’s assets, not your personal wealth. For investment properties, an LLC is generally recommended.

But an LLC also has costs: the setup, annual maintenance, a separate tax filing, and potentially different tax treatment on the gain when you sell. And FIRPTA returns here: an LLC with a foreign owner is still considered a “foreign person” for FIRPTA purposes. The LLC alone doesn’t exempt you from withholding.

The right decision depends on your situation: whether it’s for living or investing, how many properties you plan to own, your country of tax residence, and your long-term goals. This is a decision best made with an attorney and an accountant who understand both sides — your country’s and the United States’.

The costs that aren’t in the price

The listing price of the property is only part of what you’ll pay. There are additional costs that many foreign buyers don’t anticipate.

Closing costs in Florida represent 3% to 5% of the purchase price. They include title insurance, the appraisal, attorney fees, prorated taxes, and lender fees (if financing).

Homeowner’s insurance in Florida is more expensive than in most states, particularly in coastal areas, due to hurricane risk. For a condo, the HOA (homeowner’s association fee) can range from $300 to over $1,000 monthly depending on the building and amenities.

Property taxes in Florida vary by county. In Miami-Dade, the effective rate is around 1% to 1.3% of the assessed value. For a $500,000 property, that’s between $5,000 and $6,500 per year.

If you plan to rent the property, rental income is subject to federal taxes. As a foreigner, you can choose to report that income under the “effectively connected income” regime, which allows you to deduct expenses (maintenance, HOA, mortgage interest, insurance, depreciation) and pay taxes only on the net income, instead of the gross.

None of these costs is prohibitive, but if you don’t anticipate them, they can significantly change your return on investment calculation or your monthly budget.

Opening a U.S. bank account

To close the purchase you need to move funds to a U.S. account. Some buyers transfer directly to the title company’s escrow account, but having a U.S. bank account simplifies the entire process and you’ll need it for recurring expenses (HOA, insurance, taxes, mortgage if applicable).

Several banks in Florida open accounts for non-resident foreigners. You generally need to visit a branch in person with your passport, a second form of ID, proof of address from your country, and an initial deposit.

The process is easier than it seems, but it’s best done before you’re in the middle of a transaction, not during.

The three most common mistakes

After seeing hundreds of foreign buyer transactions in South Florida, three mistakes come up time and again.

The first is not having buyer representation. In Florida, the agent who lists the property works for the seller, not you. If you don’t have your own representative, you’re negotiating with no one exclusively protecting your interests. This is particularly important for buyers from countries where the real estate system works differently.

The second is not planning the tax structure from the start. Deciding how to buy (personal name, LLC, trust) and understanding FIRPTA are decisions that should be made before signing the offer, not after closing. Reorganizing the structure afterward is expensive and sometimes impossible.

The third is underestimating recurring costs. HOA, insurance, property taxes, maintenance — these monthly costs can easily add $1,500 to $2,500 on top of your mortgage payment. If you don’t calculate them correctly, the cash flow of an investment that looked profitable can turn negative.

Where to start

If you’re considering buying in Miami as a foreigner, the first step isn’t browsing properties online. The first step is understanding your financial and legal landscape: how much you can spend, how to finance, how to structure the purchase, and what tax impact you’ll face.

If you’d like to have that conversation with someone who works exclusively representing the buyer — not the seller, not the developer, not the bank — you can do so at no cost and with no obligation. Just a conversation where someone looks at your particular situation and gives you an honest answer.

High Living Miami is a real estate advisory firm in South Florida specializing in exclusive buyer representation. To learn more about how the process works, visit highlivingmiami.com.

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