Investing in Florida as a non-resident: what you need to know in 2025–2026
Why does Florida attract so many foreign investors?
In 2025–2026, Florida remains one of the most dynamic real estate markets in the United States.
Sustained population growth, attractive tax policies, and structurally strong rental demand make it a strategic destination for international investors.
Unlike other US states, Florida does not levy a state income tax . It also benefits from a steady influx of people from states like New York, California, and Illinois.
The areas most sought after by foreign investors are:
- Tampa Bay
- Sarasota
- Orlando
- Miami
Is it possible to buy real estate in the United States without being a resident ?
Yes, absolutely.
There are no legal restrictions preventing a non-resident from purchasing real estate in the United States.
A foreign investor can:
- Purchase in one’s own name
- Purchase through a US LLC
- Rent for long or short term
- Freely resell the property
No visa is required to purchase property. However, a specific visa may be required to actively conduct business there.
Possible legal structures
Purchase in one's own name
✔️ Simple
❌ Limited legal protection
❌ Less tax-efficient
Often used for second homes.
Purchase via a US LLC (the most commonly used structure)
✔️ Asset protection
✔️ Improved tax structuring
✔️ Flexible management
✔️ Suitable for long and short term rentals
For non-resident investors, the LLC is generally the most consistent solution.
Funding: Is it possible without US residency?
Yes, but under certain conditions.
Non-resident bank financing
- Required contribution: 30 to 40%
- Rates higher than for a resident
- Longer process
Common alternatives
- Cash purchase
- Private loan
- Refinancing after leasing
Many investors start with cash to secure the transaction and then refinance.
The actual costs to anticipate (often underestimated)
Property Tax
In Florida:
1.5% to 2.2% of the property value on average.
⚠️ After purchase, the tax value is reassessed.
Insurance (a major issue in 2025–2026)
The insurance market in Florida is particularly sensitive to climate risks.
To be expected:
- Homeowner insurance
- Hurricane / wind coverage
- Flood insurance (if in a flood zone)
In certain areas of Sarasota or Tampa Bay , bounties have increased sharply in recent years.
HOA ( Homeowners Association)
Very common in condos:
- Monthly charges
- Restrictions on short-term rentals
- Possible exceptional fundraising calls
Taxation for a non-resident
Rental income
- Federal tax on net income
- No income tax in Florida
- Mandatory filing with the IRS
A good structure (LLC + US CPA) is essential.
FIRPTA (resale)
FIRPTA law provides for withholding tax when a non-resident resells an asset.
This withholding is then adjusted according to the actual tax situation.
⚠️ This point must be anticipated from the moment of purchase.
Long-term vs. short-term rental
Long-term rental
✔️ Stable income
✔️ Simplified management
✔️ Popular with banks
✔️ Tight market in areas like Tampa Bay
Average gross yield: 5–7%
Short-term rental (Vacation Rental / Airbnb)
✔️ Higher potential yield
✔️ Strong seasonality
✔️ Variable local regulations
In Sarasota, some areas remain favorable for short- term rentals. Rental , subject to municipal compliance.
Potential gross yield: 8–12% depending on location and management.
Term regulations Rental : Points of vigilance
Regulations vary depending on the city and sometimes even the neighborhood:
- Municipal license
- Minimum rental period
- Annual inspection
- Additional local taxes
Local verification is essential before purchase.
Remote management: a key success factor
For a non-resident investor, local management is strategic:
- Tenant selection
- Price optimization
- Maintenance Coordination
- Financial reporting
- Rental vacancy reduction
Investing remotely without local support significantly increases the risk.
Market context 2025–2026
- Price stabilization after the sharp rise of 2021–2023
- Interest rates in the process of normalization
- Population growth remains strong
- Strong domestic migration to Florida
Markets like Tampa Bay and Sarasota maintain a good balance between yield and long-term valuation.
Common mistakes made by non-resident investors
❌ Buying without local research
❌ Underestimating insurance and property Tax
❌ Ignoring HOA rules
❌ Relying solely on theoretical returns
❌ Neglecting tax structuring
Conclusion
Investing in Florida as a non-resident is perfectly legal and accessible.
But success depends on:
- A suitable legal structure
- A precise local analysis
- Tax anticipation
- Rigorous management
Florida remains one of the most dynamic markets in the United States in 2025–2026, provided that its specific characteristics are mastered.