Guide to Investing in Miami Real Estate for Foreigners

by Rabia Mohad Ep Roig

Guide to Investing in Miami Real Estate for Foreigners

Navigating the process of investing in U.S. real estate, particularly in Miami, is relatively straightforward for foreign investors. The real estate market in Miami presents lucrative opportunities for international investors. With its appeal as one of the premier property markets in the United States, Miami attracts interest from a diverse array of foreign nationals, including those from Brazil, Colombia, Argentina, Venezuela, Canada, Russia, France, and beyond. Recent trends indicate a substantial influx of foreign investment, with many transactions being cash purchases.

In real estate transactions, typically, two licensed realtors are involved—one representing the seller and the other representing the buyer. Our services cater to both buyers and sellers. Foreign buyers benefit from the protection of Florida Property Laws, ensuring their investments and funds are safeguarded through escrow trusts. Legal considerations are paramount, and we provide access to reputable attorneys who can offer expert guidance on structuring investments, whether through personal ownership or establishing corporate entities or trusts.

We offer comprehensive support to foreign clients, including guidance on financial institution options for deposits and financing with favorable interest rates. While financing options are available to foreign investors, it's important to note that they may entail longer closing periods.

Tax obligations for foreign investors include filing U.S. tax returns and paying taxes on gains, calculated based on the property's purchase price, closing costs, commissions, and capital improvements. To ensure compliance, a 10 percent withholding is imposed at closing, with adjustments made upon filing tax returns. Foreign investors should be aware of the 10 percent withholding at closing, which is mandatory unless the seller has made prior arrangements to mitigate delays.

Acquiring a taxpayer identification number (TIN) is essential for foreign investors, enabling tax compliance. Our team assists clients through the TIN application process, ensuring timely preparation of required documents to prevent delays. Buyers have the option to retain funds in trust pending IRS approval of reduced withholding, facilitating smoother transactions.

Failure to obtain a TIN can impact sellers, potentially leading to complications during closing. Buyers may leverage their TIN application to negotiate concessions from sellers. Our commitment is to facilitate a seamless investment process for foreign clients, offering support from initiation to completion. Contact us today to explore the abundant opportunities awaiting you in the Miami real estate market.

Ensure to click bellow for extra reading

https://www.nar.realtor/foreign-investment-in-real-property-tax-act-firpta#:~:text=FIRPTA%2C%20or%20the%20Foreign%20Investment,they%20sell%20in%20the%20U.S.

https://www.nar.realtor/foreign-investors

https://www.nar.realtor/blogs/economists-outlook/foreign-investor-acquisitions-of-u-s-commercial-real-estate-increased-49-in-2021

Guide to Investing in Miami Real Estate for Foreigners

by Rabia Mohad Ep Roig

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