Buying Property in Florida as a Foreigner (2026): Homestead Tax, the Hurricane-Insurance Reset, and Why Miami Runs on Foreign Cash

Published on: June 23, 2026

Quick answer: Florida is the top U.S. destination for foreign buyers (no state income tax, Latin American capital, Canadian snowbirds), and there's no general ban on foreign ownership. But three things catch outsiders: since July 2023, SB 264 restricts buyers tied to seven "countries of concern" (a broad bar on Chinese nationals) and makes every foreign buyer sign an affidavit at closing; most foreign and seasonal owners cannot claim the homestead exemption or its 3% assessment cap, so budget full property taxes; and home insurance, though stabilizing in 2026 with Citizens cutting rates, is still the most expensive in the country. Plan for FIRPTA's 15% withholding when you sell, and scrutinize condo reserves after Surfside.

Florida is, year after year, the number-one destination for international property buyers in the United States. The reasons are obvious: no state income tax, Latin American capital flowing into Miami, Canadian "snowbirds" wintering on the Gulf, and a deep pool of new-build and resale inventory. But buying in Florida as a foreign national in 2026 comes with three things outsiders routinely get wrong: a property-tax break you probably cannot claim, a set of ownership restrictions that didn't exist a few years ago, and an insurance market that has just turned a corner after the worst crisis in its history. (For the wider U.S. picture, see our foreign buyer's guide to U.S. real estate.)

Here is what a foreign buyer actually needs to understand before signing.

Yes, foreigners can buy, but the rules changed

There is no general U.S. or Florida prohibition on foreigners owning real estate, and most international buyers transact without issue. But since 1 July 2023, Florida's Senate Bill 264 (now Chapter 692 of the Florida Statutes) restricts buyers connected to seven "foreign countries of concern": China, Russia, Iran, North Korea, Cuba, the Maduro regime in Venezuela, and Syria.

In plain terms:

• Buyers from China who are not U.S. citizens or permanent residents are broadly barred from purchasing real property in Florida, with only narrow exceptions.
• Buyers designated as "foreign principals" from the other six countries are barred from buying agricultural land or any property within 10 miles of a military installation or critical infrastructure.
• A limited exception lets an affected natural person with a valid non-tourist visa or asylum status buy one residential property under two acres, provided it is not within five miles of a military base.

Crucially, every foreign buyer, regardless of nationality, now signs an affidavit at closing attesting they are not a prohibited foreign principal. Penalties for violations include daily fines, potential forfeiture of the property to the state, and criminal exposure in the most serious cases. The law is being challenged in federal court on constitutional grounds and its ultimate scope may shift, and roughly twenty other states have adopted similar (usually milder) measures. For most buyers this is a compliance step, not a barrier, but it is a step your closing agent and attorney must handle correctly.

The homestead trap most foreign buyers fall into

This is the single most expensive misunderstanding. Florida's famous homestead exemption, which can shave value off your taxable assessment and, more importantly, caps annual assessment increases at 3% under "Save Our Homes," is reserved for people who make the property their permanent residence and establish Florida domicile.

Most foreign investors, and most seasonal snowbird owners who keep their main home abroad, do not qualify. The practical consequences:

• You don't get the homestead exemption or the 3% Save Our Homes cap.
• Your assessment is instead subject to the non-homestead 10% annual cap, and your effective tax bill is generally higher.
• Budget for full, non-homestead property taxes from day one.

Whether you can ever qualify depends on your residency and immigration situation, which is fact-specific; confirm it with the county property appraiser and a Florida attorney rather than assuming. But the default assumption for a foreign investor should be: no homestead.

The hurricane-insurance story: from crisis to reset

For years, Florida's homeowners-insurance market was the biggest hidden cost in any purchase. Carriers left the state, premiums spiked, and homeowners piled into the state-backed insurer of last resort, Citizens Property Insurance. In 2026, that story is finally changing, though Florida remains the most expensive state in the country for home insurance. (Our guide to insuring property abroad covers the buildings-and-contents basics.)

What buyers should know in 2026:

• The market is stabilizing. Legal reforms passed in 2022 to 2023, eliminating one-way attorney fees and curbing assignment-of-benefits abuse, sharply reduced litigation costs. Around 17–18 new insurers have entered the state since then.
• Citizens is cutting rates by roughly 8.7% on average at Spring 2026 renewals, its first rate decrease since 2015, with larger cuts (around 14%) in Miami-Dade and Broward. Its policy count has fallen from a peak near 1.4 million in late 2023 to under 400,000 in 2026 as policies move back to private carriers.
• But it's still expensive. Reported average premiums range widely depending on methodology and the property, from roughly $3,800 to well over $8,000 a year, against a U.S. average under $3,000. Coastal counties run highest.

Two more points foreign buyers often miss:

• Wind/hurricane coverage and flood coverage are separate. Standard homeowners policies exclude flood; you insure that separately through the federal NFIP or a private flood policy. In coastal Florida, this matters.
• A wind-mitigation inspection (a modest one-time cost) can cut the windstorm portion of your premium by 20–45% if the home has hurricane straps, an impact-rated roof, and modern construction. Roofs older than ~15 years and pre-2002 construction are the most expensive to insure.

FIRPTA: the tax that hits you when you sell

When a foreign person sells U.S. real estate, federal law (FIRPTA) generally requires the buyer to withhold 15% of the gross sale price and remit it to the IRS, as a prepayment against the seller's U.S. tax liability. This is not an extra tax, you reconcile it on a U.S. return and can often recover the excess, but it is a major cash-flow event at resale that foreign sellers must plan for. Withholding can sometimes be reduced via a withholding certificate, which takes time to obtain. Build FIRPTA into your exit math from the start.

Condo buyers: the post-Surfside reality

If you are buying a condominium, common in Miami and along the coast, be aware that after the 2021 Surfside collapse, Florida tightened building-safety and reserve-funding rules. Older condo buildings now face mandatory structural ("milestone") inspections and reserve studies, and associations can no longer waive funding for major structural reserves. The result has been special assessments and higher monthly dues in many older buildings. Before buying a condo, review the association's reserves, recent inspections, and any pending special assessments; this can change the true cost of ownership significantly.

A foreign buyer's quick checklist

• Confirm SB 264 compliance with your attorney or closing agent and sign the affidavit.
• Assume no homestead exemption; budget full non-homestead property taxes.
• Get insurance quotes before you make an offer, not after, and budget for coastal-county premiums plus separate flood coverage.
• For condos, scrutinize reserves, inspections, and special assessments.
• Plan for FIRPTA withholding on your eventual sale.
• Foreign-national mortgages exist but typically require larger down payments; many international buyers pay cash, which is part of why Miami's market runs on foreign capital.

Frequently asked questions

Can foreigners legally buy property in Florida?
Generally yes, but SB 264 restricts buyers connected to seven "countries of concern," and all foreign buyers sign a compliance affidavit at closing.

Can a foreign owner get the Florida homestead exemption?
Usually not. Homestead requires permanent Florida residence and domicile, which most foreign investors and seasonal owners don't have.

Is Florida home insurance still in crisis in 2026?
The market is stabilizing, with Citizens cutting rates for the first time since 2015 and new insurers entering, but Florida is still the most expensive state for home insurance.

Do I pay tax when I sell as a foreigner?
FIRPTA generally requires 15% withholding of the gross sale price at closing, credited against your U.S. tax liability.

Disclaimer. This article is general information for international buyers, current as of 2026, and is not legal, tax, or insurance advice. Insurance premiums, property-tax rules, SB 264's scope (which is under litigation), and FIRPTA procedures vary by property and change over time. Always work with a Florida real estate attorney, a licensed Florida insurance agent, and a U.S. tax professional before buying or selling.

A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.