Buying Real Estate in the Florida Keys as an International Buyer

Why the Florida Keys Attract International Capital

The Florida Keys are not simply a resort destination. They are a finite chain of islands, governed by some of the most restrictive building and zoning rules in the United States. That scarcity of land creates long-term stability that attracts international capital seeking hard-asset preservation, lifestyle value, and political stability.

Unlike many foreign resort markets, property rights in the United States are extremely strong. A buyer from Europe, Latin America, or the Middle East has the same legal ownership protections as a U.S. citizen. There is no forced partnership, no government leasehold, and no requirement to use a local nominee.

That certainty is one of the primary reasons international families increasingly view U.S. coastal real estate as a safe-harbor asset class, along with the friendly tax codes.

Can Foreign Buyers Legally Own Property in Florida?

Yes. The United States does not restrict foreign nationals from owning real estate. You do not need:

• U.S. citizenship
• A green card
• A visa

You may purchase property remotely, sign documents electronically or through international notaries, and close without ever physically entering the country.

However, property ownership does not grant residency. If you want to stay in the U.S. for extended periods, immigration status must be handled separately.

How International Buyers Should Take Title

This is one of the most important decisions you will make, and one of the most misunderstood.

Personal Ownership (Individual Name)

This is the simplest structure. You hold the deed personally.

The benefit is clean resale and easy financing. The downside is that U.S. estate tax applies to real estate owned by foreign individuals, and the exemption for non-U.S. persons is extremely small compared to Americans.

This means that if you die while owning U.S. real estate personally, your heirs may face significant U.S. estate tax exposure.

LLC or Foreign Corporation

Many international buyers purchase through a Florida LLC or a foreign entity that owns a U.S. LLC.

This provides:

• Asset protection
• Privacy
• Easier transfer of ownership interests

However, it complicates financing and adds annual filing and tax obligations.

Trust Ownership

Trusts are commonly used for estate planning. Some are designed to avoid probate, some to minimize estate tax exposure. These must be designed by attorneys who understand both U.S. tax law and your home country’s rules.

There is no universal “best” structure — it depends on citizenship, family situation, and long-term plans.

How the U.S. Taxes Foreign Property Owners

Rental Income

If you rent your Florida Keys property, the U.S. government considers that U.S.-sourced income. You must file a U.S. tax return. However, you are allowed to deduct:

• Mortgage interest
• Property taxes
• Insurance
• Repairs
• Depreciation

Many foreign owners end up paying far less tax than expected once deductions are applied.

FIRPTA When You Sell

Under U.S. law, when a foreign owner sells U.S. real estate, the buyer is legally required to withhold 15% of the purchase price and send it to the IRS.

This is not your final tax — it is a withholding. After the sale, you file a U.S. tax return and calculate the actual gain. If too much was withheld, you receive a refund.

Most international sellers apply for a withholding reduction before closing, which allows the IRS to lower the amount based on the actual expected tax.

Estate Tax Risk

This is where many foreign buyers are caught unaware.

U.S. citizens can pass more than $13 million tax-free. Foreign owners only receive a very small exemption. Without planning, a multimillion-dollar Keys property could face estate tax upon death.

This is why ownership structure is not optional — it is essential.

Florida Closing Costs and Transfer Taxes

When you buy property in the Florida Keys, several taxes and fees apply.

Florida charges a documentary stamp tax on the sale of real estate. This is calculated on the purchase price and is paid at closing. In Monroe County, this is typically 0.70% of the price.

If you finance the purchase with a U.S. lender, Florida also charges an intangible tax on the mortgage.

You will also pay:

• Intangible tax: 0.20% of your loan amount (one time)
• Mortgage documentary stamps: 0.35% of loan amount (one time)
• Title insurance: ≈ 0.5%–1.0% of purchase price (one time)
• Recording fees: Often $300–$500 total. (One time)
• Property tax: Usually ~1 % annually of assessed value. (annually)
• Total closing costs: Roughly 2%–5% of purchase price when financing.

Insurance in the Florida Keys

Because the Keys are a coastal, hurricane-exposed market, insurance is layered.

Your property will usually require:

• Homeowners insurance
• Windstorm coverage
• Flood insurance

Flood insurance is often mandatory due to FEMA flood zones, even for luxury properties. Rates depend on elevation, construction, and location.

International buyers should request insurance quotes before finalizing their offer — not after.

If you are a cash buyer, all of these insurances are not required but often still purchased for security. 

Financing for International Buyers

Some U.S. banks lend to foreign buyers, but terms are stricter. Expect:

• Larger down payments
• Higher interest rates
• Extensive financial documentation

Many luxury international buyers choose all-cash purchases for speed and negotiating leverage.

Rental Laws Matter in the Keys

The Florida Keys are not one rental market. Each island and municipality has its own short-term rental laws.

A home that is legal to rent weekly in Marathon, would be a monthly rental in Islamorada. Both have great income potential but it is important to explore the income model before purchasing and how often you plan to use the home. 

Buying real estate in the Florida Keys as an international buyer is not difficult — but it must be done correctly.

The result is not just a beautiful home, but a legally sound, wealth-preserving international asset.