Buying Property in Miami as a Foreign Investor — The Complete Guide

Miami is, in absolute terms, the most internationalized residential real estate market in the United States. In any given year, roughly a third of the dollar volume transacted in Miami-Dade County originates with a foreign buyer — Latin American families restructuring out of currency risk, European investors seeking USD exposure, and increasingly Middle Eastern and Asian capital following the same logic.

What surprises most first-time foreign buyers is how procedurally open the market is. There are no residency requirements, no nationality restrictions, no minimum thresholds. What requires more thought is the structuring around the acquisition — the choice between personal name, LLC, or corporate ownership has tax consequences that compound for decades.

What foreigners can buy

Practically everything. The United States places almost no restriction on foreign ownership of real estate. A foreign individual or company can acquire residential property, commercial property, raw land, or multifamily buildings on the same legal terms as a US citizen.

The Foreign Investment in Real Property Tax Act (FIRPTA) governs the tax treatment on sale, but it does not restrict acquisition. The Committee on Foreign Investment in the United States (CFIUS) reviews certain transactions near military installations or critical infrastructure, but standard urban residential acquisitions are not subject to review.

The acquisition process

A typical Miami residential acquisition follows this sequence:

• Property identification — through a licensed Florida realtor, often a specialist working with international clients.
• Offer (AS-IS Residential Contract) — submitted with a binder deposit, typically 1% to 5% of purchase price.
• Inspection period — usually 10 to 15 days, during which the buyer may walk away and recover the deposit.
• Financing contingency — if applicable. Most foreign acquisitions are cash; foreign-national mortgage products exist but typically require 30% to 40% down.
• Title and escrow — handled by a Florida title insurance company or real estate attorney.
• Closing — title transfers; the deed is recorded with Miami-Dade County.

From accepted offer to closing typically takes 30 to 45 days for a cash transaction.

Acquisition costs

Florida closing costs for the buyer are modest by international standards, typically 1.5% to 3% of purchase price all-in. The major line items:

• Title insurance — promulgated rates, roughly 0.5% to 0.6% of purchase price.
• Documentary stamp tax on the deed — paid by seller in Miami-Dade, but negotiable.
• Recording fees — nominal.
• Attorney fees — $2,000 to $7,500 depending on complexity.
• Survey, inspections, condo association estoppel — $1,000 to $3,000 combined.

Ownership structure — the most important early decision

Foreign individuals owning US real estate directly face two structural problems: estate tax exposure (the US federal estate tax exemption for non-resident aliens is only $60,000, with rates up to 40%) and FIRPTA withholding on sale.

Most sophisticated foreign buyers structure ownership through a US LLC owned by a foreign corporation (a 'foreign blocker' structure). This insulates against US estate tax and simplifies the FIRPTA position on exit. The trade-off is annual filing complexity and ongoing administrative cost.

For trophy assets held by a family for multigenerational use, the blocker structure is almost always worth the overhead. For smaller acquisitions, direct ownership may be acceptable — but the decision should be made before signing, not after.

Ongoing costs to budget

Carrying a Miami property is more expensive than most foreign buyers anticipate, and the gap has widened sharply since 2022:

• Property tax — roughly 1.8% to 2.1% of assessed value annually in Miami-Dade.
• HOA / condo fees — $1.50 to $3.50 per square foot per year is typical in luxury buildings, increasingly more.
• Insurance — windstorm and flood coverage have repriced dramatically; budget $8,000 to $25,000 per year for a luxury single-family home.
• Federal and state filings — annual LLC and corporate filings if held through a structure.

Where serious foreign capital concentrates

Miami is not one market. The neighborhoods where international investor capital genuinely concentrates are narrower than the headlines suggest:

• Coconut Grove — old-money Miami, oak-canopied streets, walkable village feel.
• Coral Gables — Mediterranean revival, deeply zoned, generational holdings.
• Key Biscayne — a barrier island with a Latin American buyer base.
• MiMo (Miami Modern, Upper East Side) — the architectural value-add story; midcentury hotels and small-lot residential.
• Edgewater and Brickell — vertical, high-rise, transactional. Different thesis than the above.

Frequently asked questions