4 Rules for Buying a House in Florida

March 15, 2022
Posted in Real Estate
March 15, 2022 taticesso

You can make your dream of buying a house in Florida come true easier than you think! Like any U.S. citizen, foreign buyers can purchase real estate for personal use. It can be under their names or a corporation or LLC (a type of company where corporate liability is limited and does not require a visa or residence in the country).

But be aware of the rules!

#1: Profits from the sale of any property owned by a foreign national can be taxed, so unless you get tax exemptions, you must use 10% of the property’s value to pay taxes to the IRS.

#2: Foreigners who purchase property of significant value in the U.S. must report the purchase to the U.S. Department of Commerce, with the names and addresses of the buyers, sellers, and owners who are part of the deal, as well as financing information, if any, and the expenses and income of the property.

#3: Property rental income is taxed by the local government. The foreign landlord-lessor is given some options on how this taxation can be carried out:

– Pay 30% of the gross rental income;

Or pay regular U.S. Income Tax rates on the property’s net income.

 #4: The state of Florida has specific application requirements for foreigners and legal entities who want to purchase property in its territory. Any property owned by a foreign company must have a representative in Florida, either an office or a registered agent with the Department of State.

In the case of a foreign individual who owns a property in the state and wants to sell it or rent it to third parties, it is also mandatory to register to pay taxes due to state revenue.

Fraga Company can help you accomplish the dream of owning a house in Florida!

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