Can Foreigners Sell Property in Florida?

Owners acting on this guidance move forward through our Miami property selling services.

Legal Rights of Foreign Property Sellers in Florida

Foreign nationals who own real estate in Florida have the same legal right to sell their property as U.S. citizens. There are no restrictions on foreign sellers regarding listing, marketing, negotiating, or transferring ownership. The sale process follows standard Florida real estate law, including contract execution, inspections, title search, and closing at a licensed title company.

The primary distinction for foreign sellers is the FIRPTA withholding requirement, which mandates that a percentage of the gross sale price be withheld and remitted to the IRS at closing. Our detailed guide on FIRPTA tax obligations for foreign sellers explains withholding rates, exemptions, and refund procedures. The IRS FIRPTA withholding guidelines provide the official regulatory framework. For a complete walkthrough of the entire selling process from abroad, our guide on how to sell Miami property from abroad covers every step from listing to fund disbursement.

FIRPTA: The Key Tax Obligation for Foreign Sellers

The Foreign Investment in Real Property Tax Act requires the buyer to withhold 15% of the gross sale price when purchasing from a foreign seller. This withholding is a prepayment of the seller's capital gains tax liability. The closing attorney or title company typically manages the FIRPTA withholding process, ensuring the correct amount is withheld and submitted to the IRS using Form 8288.

If the actual capital gains tax owed is less than the amount withheld, the seller can file a U.S. tax return to claim a refund. Alternatively, the seller can apply for a withholding certificate prior to closing to reduce the withholding amount based on the anticipated gain. This application typically takes 90 days and should be initiated well in advance of the expected closing date.

Capital Gains Tax Calculation

The capital gain on the sale of U.S. real property is calculated as the sale price minus the adjusted cost basis. The adjusted cost basis includes the original purchase price plus the cost of capital improvements minus any depreciation taken during the holding period. Long-term capital gains (properties held more than one year) are taxed at preferential rates of 0%, 15%, or 20%.

Foreign sellers should maintain detailed records of all purchase costs, improvement expenditures, and depreciation schedules throughout the holding period. These records are essential for accurately calculating the gain and potentially reducing the FIRPTA withholding through a withholding certificate application.

Remote Selling Options for Foreign Owners

Florida's electronic notarization and remote online notarization (RON) capabilities allow foreign sellers to complete the entire transaction without traveling to the United States. Electronic signatures are accepted for purchase contracts, counteroffers, and most closing documents. For the deed and other documents requiring notarization, RON allows the seller to appear via secure video conference with a licensed Florida notary. For a detailed explanation of how each step works, see our guide on how to sell your Miami property remotely.

Alternatively, a power of attorney can be executed to authorize a representative in Florida to sign closing documents on the seller's behalf. If the POA is signed outside the U.S., it typically requires notarization at a U.S. consulate or apostille certification under the Hague Convention. Our guide on how real estate closings work remotely in Florida covers the RON and POA processes in full detail.

Choosing the Right Professional Team

Selling Florida real estate as a foreign national requires a coordinated professional team. This includes a real estate agent experienced in international transactions, a Florida-licensed real estate attorney who handles FIRPTA compliance, and a CPA familiar with cross-border taxation. The agent manages the listing, marketing, showings, and negotiations, while the attorney ensures proper document execution and fund disbursement.

International sellers from Latin America, Europe, and Canada should prioritize agents with multilingual capabilities and a track record of successful remote transactions. Understanding current Miami real estate market conditions helps inform pricing and timing decisions when listing from abroad. Supreme Capital Real Estate Agents Miami represents international sellers across Miami-Dade County, coordinating every aspect of the selling process from listing through closing.