Complete Guide: Investing in Florida Real Estate
2025-2026 Edition — For Colombian Investors
Prepared by Liz Diaz International Real Estate Advisory
1. Why Florida
Florida has been the number one destination for international real estate investors for over 15 consecutive years, according to the National Association of Realtors (NAR 2025). The combination of a robust economy, sustained population growth, and a favorable tax framework makes it a unique opportunity for Colombian investors.
$1.7T+
Florida GDP — 4th largest economy in the US
23.3M
Population (8.2% growth since 2020, U.S. Census 2025)
143M
Visitors in 2024, all-time record (VISIT FLORIDA)
$133.6B
Tourism economic impact in 2024
$925M
Invested by Colombian buyers (300% increase vs 2024)
0%
State personal income tax
2. Legal Framework for Foreign Buyers
Foreign nationals have full rights to purchase property in the United States. No residency, citizenship, or special visa is required to acquire real estate. However, there are specific tax regulations that every investor must understand.
FIRPTA (Foreign Investment in Real Property Tax Act)
When selling a property, the buyer must withhold a percentage of the sale price and remit it to the IRS:
| Sale Price | FIRPTA Withholding | Condition |
|---|---|---|
| > $1,000,000 | 15% | Applies in all cases |
| $300,001 – $1,000,000 | 10% | Applies in all cases |
| ≤ $300,000 | 0% | Only if the buyer will use it as primary residence |
LLC vs. Individual Ownership
Purchasing through an LLC (Limited Liability Company) is recommended for several critical reasons:
- Estate Tax: Non-residents have an exemption of only $60,000 USD (vs. $12.92M for residents). The rate can reach up to 40% on the property value. An LLC avoids this exposure.
- Liability protection: Separates the asset from your personal estate.
- Ease of transfer: Membership interests are transferred, not the property title.
ITIN (Individual Taxpayer Identification Number)
Required for filing US taxes. Obtained through IRS Form W-7. Processing time: 7 to 11 weeks. Essential for obtaining mortgage financing.
EB-5 Immigrant Investor Visa
For those seeking permanent residency: minimum investment of $800,000 USD in Targeted Employment Areas (TEA) or $1,050,000 USD in non-TEA areas (USCIS 2025-2026). Requires the creation of 10 full-time jobs.
3. Buying Process Step by Step
The complete process takes between 60 and 120 days. Below is each stage with estimated timelines:
Planning and Initial Advisory
Weeks 1-4
Define investment goals (rental income, appreciation, residency), budget, and target market. Evaluate legal structure (LLC vs. individual) and obtain binational tax advisory.
Open a US Bank Account
Weeks 2-6
Open an account at a US bank to manage the transaction. Banks that accept non-residents: TD Bank, Wells Fargo, Bank of America, Chase. Requirements: passport, visa, and US address (agent or attorney address may be used).
Financing Pre-Approval
Weeks 3-8
Obtain a pre-approval letter from a lender specializing in international buyers. Typical down payment: 25-35%. Interest rate: 7.5-9.5% (2025). Requirements: ITIN, bank statements, income verification.
Property Search
Weeks 4-12
Select properties that meet defined objectives. Comparative Market Analysis (CMA), virtual or in-person tours, rental income and appreciation potential evaluation. Liz Diaz accompanies you through every step of the process.
Offer and Negotiation
Weeks 12-14
Submit a formal offer. Earnest Money deposit: typically 1-3% of the purchase price. Negotiate terms, contingencies, and closing date. The standard Florida contract is the "FAR/BAR As-Is" or with inspection and financing contingencies.
Due Diligence
Weeks 14-18
Property inspection ($300-600 USD), professional appraisal ($350-500 USD), title search, HOA review if applicable, and title insurance. Critical period to identify issues before closing.
Closing
Weeks 18-20
Sign documents at the Title Company. Remote signing is possible with an apostilled Power of Attorney. Wire transfer of funds. Total estimated process time: 60-120 days.
4. Financing Options
42% of international purchases in Florida are all-cash transactions. However, financing options are available for foreign buyers with competitive terms:
| Parameter | Details |
|---|---|
| Down Payment | 25-35% of purchase price |
| Interest Rate (2025) | 7.5% – 9.5% annually |
| Term | 15 or 30 years |
| Required Reserves | 6-12 months of payments |
Lenders Specializing in Foreign Nationals
- Lending Bankers Mortgage — Foreign National Loan specialists
- Angel Oak Mortgage — Non-QM programs for non-residents
- CTC Mortgage — Mortgages for international buyers
- First American Bank — Accounts and financing for foreign nationals
5. Key Florida Markets
Each market in Florida has a different risk-return profile. The right choice depends on your investment objectives:
| Market | Median Price | Cap Rate | Profile |
|---|---|---|---|
| Miami-Dade | $695K+ | 3-5% | Capital appreciation, luxury market, high international demand |
| Broward | $600K | 4-6% | Price/rent balance, proximity to Miami, growing market |
| Orlando | $385K | 6-8% | Tourism (theme parks), accessible entry point, high vacation occupancy |
| Tampa | $370K | 7-9% | Best cash flow, gentrification zones, corporate growth |
Note: Median prices and cap rates are estimates based on 2024-2025 market data. Conditions vary by area, property type, and timing. Contact Liz Diaz for an updated analysis.
6. Tax Considerations (US + Colombia)
United States Taxes
- Rental income: 10-37% on net income (after deductions) through Form 1040-NR.
- Failure to file penalty: Without timely filing, the IRS applies 30% on GROSS income (no deductions allowed).
- Capital gains: 0-20% federal + 3.8% NIIT (Net Investment Income Tax) if applicable.
- Property Tax: Varies by county, typically 1.0-2.0% of assessed value annually.
Colombian Tax Obligations
- No Double Tax Treaty (DTT) exists between Colombia and the United States. This means double taxation may occur.
- Tax credit: Article 254 of the Colombian Tax Code allows deducting taxes paid in the US from your Colombian tax return.
- Foreign Asset Declaration: DIAN Form 160, mandatory if foreign assets exceed 2,000 UVT (approximately $99.6M COP in 2025).
- FATCA: Colombia-US agreement for automatic reporting of financial accounts between both countries.
- Capital gains in Colombia: 15% on the profit from property sale.
Important: This information is for guidance only. Tax planning should be conducted with a certified public accountant specializing in international taxation. Liz Diaz has a trusted network of professionals to advise you.
7. Risk Factors
Every investment carries risks. Understanding them is essential for making informed decisions:
Property Insurance
Average insurance cost in Florida is $3,800-$4,000/year. In premium coastal areas, it can reach up to $14,520/year. Florida has the most expensive insurance market in the country due to hurricane risk.
HOA (Homeowners Association)
Monthly fees range from $200 to $1,500+ depending on property type and amenities. Following the Champlain Towers collapse (Surfside, 2021), special assessments have increased significantly for condominium buildings, especially for structural reserves.
Property Management
Professional management: 8-10% of rent for long-term rentals, 20-25% for short-term vacation rentals. Essential for investors managing from Colombia.
Currency Risk (COP/USD)
The COP/USD exchange rate has fluctuated between $3,300 and $5,000 in recent years. This can amplify or reduce real returns when converting profits to Colombian pesos. Currency hedging strategies should be evaluated.
8. Document Checklist
Identity and Immigration
- Valid passport
- Colombian national ID (cedula)
- B1/B2 visa (tourist/business) or ESTA if applicable
- ITIN (Individual Taxpayer Identification Number)
Financial — Cash Purchase
- Bank statements from the last 3-6 months
- Proof of source of funds
- Colombian tax return (latest fiscal year)
- Active US bank account
Financial — Mortgage Purchase
- Credit reference (letter from Colombian bank)
- Income verification / employment letter
- Verifiable down payment: 25-35% of price
- Reserves: 6-12 months of payments in account
LLC Formation
- Articles of Organization (filed with the state)
- EIN (Employer Identification Number) from the IRS
- Operating Agreement
Post-Purchase Obligations — Colombia
- DIAN Form 160 (Foreign Asset Declaration)
- Updated Colombian tax return
- Report to Banco de la Republica (foreign investments)
Post-Purchase Obligations — United States
- Form 1040-NR (federal income tax return)
- LLC Annual Report (filed with the State of Florida)
- Property tax payment (annual)