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Buying in Naples from abroad adds a layer most agents gloss over: FIRPTA, U.S. taxes, how to hold title, foreign-national financing, Florida’s new foreign-ownership law, coastal insurance, and closing without flying in. Here’s the honest, plain-English version — so you know the questions to ask before you write an offer.
Educational only — and this area is changing fast. U.S. tax rules and Florida’s foreign-ownership law (SB 264) are actively evolving in 2025–2026. Treat everything here as a starting point, and confirm your specifics with a Florida real estate attorney and a cross-border tax attorney or CPA before you sign anything.
The single most misunderstood rule for foreign owners is FIRPTA (the Foreign Investment in Real Property Tax Act). When a foreign person sells U.S. real estate, the buyer must generally withhold 15% of the gross sale price and send it to the IRS. Two things surprise people:
Lower tiers apply when the price is $1M or less and the buyer will use the home as a residence: 0% at $300,000 or less, 10% from $300,001–$1,000,000, and 15% above $1M. Both the foreign seller and buyer need a U.S. tax ID (an ITIN if no SSN).
Rental income: Florida has no state income tax, but U.S. rental income is subject to federal tax — by default a flat 30% on gross rent, or (much better) a net election so you’re taxed on income after expenses. Estate tax is the sleeper issue: a non-U.S. resident’s U.S. real estate is exposed to U.S. estate tax above only about $60,000, with rates to 40% — versus a ~$15M exemption for a U.S. citizen. Estate-tax treaties (UK, Germany, France; Canada via the income-tax treaty) can soften this. This is exactly why structuring matters.
Many buyers assume they should just buy in their personal name; others assume a U.S. LLC solves everything. The truth is in between:
Estate-tax mitigation usually requires a more deliberate structure (e.g., a foreign corporation or trust) with its own trade-offs — and the right answer depends on your home country, treaty, use, financing, and exit plan. Do not copy a friend’s structure. This is the one decision to make with a cross-border tax attorney before you buy.
Plenty of luxury purchases here are all-cash, but a foreign-national mortgage is very doable — lenders just underwrite differently:
| U.S. citizen | Foreign national | |
|---|---|---|
| Typical down payment | 3%–20% | 25%–40% |
| Credit verification | U.S. FICO score | Foreign bank / income proof, reference letters |
| Reserves | 0–6 months | 6–12 months |
| Closing timeline | ~30 days | 45–60+ days |
Ranges vary by lender and property — these are portfolio (non-QM) loans, not Fannie/Freddie. Rates move constantly; I’ll connect you with lenders who do these regularly.
If you’re paying cash, start the money early. Large international wires clear anti-money-laundering and source-of-funds review that commonly adds 5–15+ business days and can’t be rushed. And most retail banks give poor exchange rates — a specialist FX broker (Moneycorp, Currencies Direct, and similar) can lock a rate and stage USD in escrow, often saving tens of thousands on a multi-million-dollar purchase. One non-negotiable: verify wire instructions by phone using a number you already have — wire fraud is the top closing-table risk, and emailed “updated instructions” are the classic scam.
Since 2023, Florida restricts buyers tied to certain “countries of concern” — China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria — from certain real-estate purchases, with a tighter rule for buyers domiciled in China and extra limits near military installations, critical infrastructure, and on agricultural land. Even if that’s not you, it still matters: every buyer signs an affidavit at closing attesting they’re not a prohibited foreign principal.
As of mid-2026, the law is in effect statewide — the 11th Circuit upheld it in November 2025 and the challenge was closed. This is a politically and legally active area, so if you have any ties to a country of concern, or are buying near a base or critical infrastructure, confirm your eligibility with a Florida attorney before contracting.
Coastal insurance surprises people. Standard policies cover wind/hurricane, but high-risk coastal homes may need separate windstorm coverage, and Florida requires a separate hurricane deductible (often 2%–10% of the dwelling value). Flood is never covered by a homeowners policy — you buy it separately (federal NFIP, capped at $250K building, or private flood for higher limits), and it’s required in a FEMA flood zone if you finance. Citizens is the insurer of last resort, and increasingly requires flood coverage too. If the home will sit empty seasonally, disclose that honestly — vacancy affects coverage.
You usually don’t have to fly in to close. Florida authorizes Remote Online Notarization (RON) — you sign electronically by video with a Florida online notary, even from overseas. Alternatives are a mail-away closing (sign before a U.S. embassy/consulate officer, or a local notary with an apostille) or a power of attorney. Acceptance varies by title company and lender, so line it up early.
The specialized steps a foreign national should work through, in order. Tick them off as you go — your progress is saved on this device.
Yes — through FIRPTA. The buyer must generally withhold 15% of the gross sale price and remit it to the IRS. Lower tiers apply when the price is $1,000,000 or less and the buyer will use it as a residence (10% from $300,001–$1M; 0% at $300,000 or less). Critically, this is withholding on the gross price, not a tax on your profit — you file a U.S. return and usually get much of it back. You can also apply for a withholding certificate (Form 8288-B) to reduce it up front.
Yes, at the federal level. Florida has no state income tax, but rental income from U.S. property is subject to U.S. federal income tax. By default it’s taxed at a flat 30% on gross rent with no deductions; most owners instead elect (Form W-8ECI / a 1040-NR filing) to be taxed on net income after expenses like mortgage interest, taxes, insurance, and depreciation — almost always a better result.
Often for liability protection and privacy — but be careful about why. A single-member LLC is “disregarded” for income tax, so it does not change your FIRPTA or rental-tax situation, and it does NOT reliably shield a non-U.S. resident from U.S. estate tax (which hits U.S. real estate above only about $60,000 with rates to 40%). The estate-tax treatment of a disregarded LLC is genuinely unsettled. This is the single most important thing to get right with a cross-border tax attorney before you buy.
Yes — a “foreign-national mortgage.” Expect a larger down payment (typically 25%–40%), documentation in place of a U.S. credit score (foreign bank statements, income proof, reference letters), 6–12 months of reserves, and a longer timeline (about 45–60+ days vs. ~30 for a citizen). These are portfolio loans, so terms vary by lender.
Every buyer of Florida real estate now signs an affidavit at closing confirming they are not a prohibited “foreign principal” — so yes, it touches all buyers, including Canadians and Europeans. It also restricts buyers tied to certain countries of concern (China, Russia, Iran, North Korea, Cuba, Venezuela, Syria) from certain purchases, with a tighter rule for buyers domiciled in China. As of mid-2026 the law is in effect statewide after the 11th Circuit upheld it (Nov 2025). If you have any ties to those countries, verify your eligibility with a Florida attorney.
Usually not. Florida authorizes Remote Online Notarization (RON), so you can sign electronically from abroad by audio-video with a Florida online notary. Alternatives are a mail-away closing signed before a U.S. embassy/consulate officer (or a local notary with an apostille) or granting a power of attorney to someone here. Acceptance varies by title company and lender, so confirm your method early.
It can, through the IRS “Substantial Presence Test,” which uses a weighted 3-year average of your days in the U.S. — so even four months a year can add up over time. The fix is Form 8840 (Closer Connection Exception), filed each year to show your real home and life remain in Canada. See our dedicated Canadian snowbird tax guide, and confirm your plan with a cross-border CPA.
I work with international and absentee buyers across Naples — coordinating attorneys, cross-border CPAs, foreign-national lenders, FX, insurance, and property management, and representing you from the first video tour to a remote closing. Tell me what you’re looking for and I’ll send a tailored plan.
Figures are current as of mid-2026 and simplified for education. FIRPTA, federal tax, SB 264 enforcement, and FinCEN rules are changing — verify current law and your specific situation with the appropriate licensed professional.
I’ll pull current listings that fit, line up the right attorney, CPA, lender, and insurance, and handle the details across the distance.