How overseas buyers buy property in United States

What to know first

• The only market on this platform with zero currency-conversion risk for USD-based buyers — the US dollar is the world's reserve currency, and Florida adds no state income or capital gains tax on top of federal rates
• Florida's SB 264 (2023) restricts individuals and entities from seven "countries of concern" (China, Russia, Iran, North Korea, Cuba, Venezuela, Syria) from owning most Florida real estate — with a narrow exception allowing non-citizen Chinese individuals to buy one residential property outside a 5-mile military-installation radius. The law remains under active litigation in the 11th Circuit as of 2026 — buyers from these countries should get current legal advice before purchasing
• FIRPTA withholds 15% of the gross sale price at closing for foreign sellers — a genuinely different mechanic from every other market on this platform, where the tax bite lands at the point of exit rather than as an annual charge
• Real estate purchase alone confers zero US residency or visa rights — a structural dead end matching France, not Turkey/Morocco/Pakistan's various golden-visa-style routes; the EB-5 investor visa is a separate, much larger, actively-managed investment vehicle
• The Federal Reserve is holding its policy rate at 3.50-3.75% with inflation still running above target (core PCE 3.3%, June 2026) — a genuinely different rate regime from the ECB's 2.25% in France

The general process

1. Confirm what foreigners may own in United States and in which areas.
2. Set your budget in USD, including taxes, fees and currency costs.
3. Shortlist areas and check the developer or seller.
4. Appoint an independent local lawyer before paying anything substantial.
5. Reserve, sign the contract, and pay through the approved channel.
6. Complete registration, and take tax advice in both countries on any rent or sale.

The exact steps and order differ by country and by project.

Financing for foreign buyers

Maximum loan to value

Foreign-national mortgage programs exist at major US and international banks, typically 60-70% LTV (30-40% down payment required) — meaningfully more conservative than domestic-buyer terms

Typical rate

Federal Reserve funds rate held at 3.50-3.75% (July 2026 FOMC) — elevated by this platform's standards, with core PCE inflation still running above the Fed's 2% target (3.3% as of June 2026)

Notes

Most foreign buyers of Miami pre-construction condos pay via cash or developer deposit-instalment plans through handover, arranging financing (if any) only after completion

Residency through property

Programme

None via direct property purchase — buying a condo confers zero US visa or residency rights on its own. The EB-5 Immigrant Investor Program is a separate route requiring $800,000-$1,050,000 invested into an active, job-creating commercial enterprise, not a passive real estate purchase — the two are commonly confused but structurally unrelated

Taxes and running costs

Income tax on rent

Non-resident aliens pay US federal tax on net rental income at graduated rates (or a 30% flat withholding on gross rents unless a Section 871(d) election is made). Florida levies no state income tax at all.

Capital gains tax

Federal long-term capital gains taxed at 0/15/20% depending on income, plus a 3.8% Net Investment Income Tax for higher earners — Florida adds no state capital gains tax. FIRPTA requires the buyer to withhold 15% of the gross sale price at closing for foreign sellers (reduced to 10% for owner-occupied sales priced $300,001-$1,000,000) — a prepayment against the seller's actual liability, refundable if the real tax owed is lower.

Transfer tax or fees

Florida documentary stamp tax on the deed — 0.60% of the sale price in Miami-Dade County, 0.70% elsewhere in the state

Annual property costs

Miami-Dade effective property tax rate is roughly 0.8-1.0% for homestead-eligible owners; non-resident/investment owners don't qualify for homestead and are assessed at full market value with no cap, typically pushing the effective annual burden toward 1.0-1.5%