Buying property in the United States as a Colombian or Mexican citizen is legal, straightforward in Buying a property in Florida as a Colombian or Mexican citizen is legal, procedurally accessible, and increasingly common. What complicates the process isn’t eligibility — it’s showing up unprepared: without a defined ownership structure, without your ITIN in place, without understanding your estate tax exposure, or how FIRPTA works when you sell.
To buy a property in Florida as a foreigner, you don’t need citizenship, residency, or a visa. Legally, you must: define your ownership structure (individual, LLC, or trust) before signing, apply for an ITIN, understand your tax exposure (property tax, income tax, a $60,000 estate tax threshold, and 15% FIRPTA withholding when selling), and close with a title company. The entire process can be done remotely.
This checklist covers each step in order, with the specific requirements that apply to investors from Colombia and Mexico. Some steps are identical for both nationalities. Others differ, and those differences have real consequences. While the focus goes deep on Colombia and Mexico, the legal process is the same for investors from Peru, Ecuador, Chile, and Central America: the only thing that changes is each country’s tax treaty with the United States.
Table of contents
- Confirm you can buy as a foreigner
- Choose the right legal structure before signing
- Apply for your ITIN
- Open a U.S. bank account
- Understand the taxes that apply to you
- Work with a title company and insure the property
- Verify local regulations before buying
- Sign remotely: it’s possible and it’s legal
- File income and expenses annually
- Build your professional team
If you’d rather see the full picture before diving into the legal detail, check the guide to buying a home in Florida as a foreigner.
1. Confirm you can buy as a foreigner
The United States doesn’t require citizenship or legal residency to acquire real estate. Any foreign individual or legal entity can buy and own property in Florida with no nationality restrictions. See the full detail in requirements to buy a house in Florida.
The purchase does not grant a visa, residency, or any immigration benefit. It’s a real estate transaction. The EB-5 program exists separately for larger-scale investments with a path to residency, but it operates under different conditions and requires specialized immigration advisory.
You can buy in three ways:
- Under your own name: the initial process is more straightforward, but there’s no separation between your personal assets and the property’s risks. Your name stays on the public record. And if you pass away as the direct owner, the property goes through probate in Florida, a court process that can take 6 to 18 months and cost $5,000 to $20,000 in legal fees for your heirs in Colombia or Mexico.
- Through a Florida LLC: the structure most used by foreign investors. The LLC holds title to the property, not you. Your name doesn’t appear on the public record. If someone sues over an incident on the property, they can only go after the LLC’s assets. And when you pass away, your heirs inherit your membership interest in the LLC, not the property directly, which avoids probate.
- Through a revocable trust: useful for estate planning when there are multiple properties or significant wealth involved. More complex to set up. Works best combined with an LLC rather than as a standalone structure for a first investment.
The structure decision should be made before signing the purchase contract, not after closing.
2. Choose the right legal structure before signing {#step-2}
This is the decision with the greatest long-term impact, and the one most often postponed. Changing ownership after closing is possible but can create complications with the lender if there’s a mortgage.
| Structure | Asset protection | Privacy | Estate tax | Succession |
|---|---|---|---|---|
| Personal name | None | Low (public record) | Full exposure ($60,000 threshold) | Probate in Florida |
| Florida LLC | High | High | Can be mitigated | No probate |
| LLC + revocable trust | High | High | Can be mitigated | No probate, cleaner |
Estate tax for non-resident aliens: the exemption threshold for the U.S. federal estate tax for non-resident aliens is just $60,000. Anything above that amount can be subject to a rate of up to 40%. For a $500,000 property bought under a personal name, exposure can reach $176,000 that heirs must pay to the IRS before receiving the asset.
Neither Colombia nor Mexico has a comprehensive tax treaty with the U.S. that protects their citizens from this exposure. An LLC with the right structure can significantly reduce it. The details on how to do this correctly are explained in the taxes for foreigners in Florida guide, which is worth reviewing before talking to an attorney.
Most Latin American investors in Florida use a Florida LLC. Formation costs run about $125 to $200 in state fees plus registered agent fees. The annual report costs $138 a year.
If you’re going to finance the purchase, the structure you choose also affects your mortgage: check mortgage financing for foreigners in Florida.
3. Apply for your ITIN
The ITIN (Individual Taxpayer Identification Number) is the tax ID the IRS assigns to foreigners with U.S. tax obligations who don’t qualify for an SSN.
It’s not required to sign the purchase contract, but it is required to:
- File taxes on rental income
- Submit the annual 1040-NR form
- Handle FIRPTA withholding when selling
- Open bank accounts at some banks
- Operate a single-member LLC without double taxation
The process goes through the IRS with Form W-7 and identity documentation. It takes 7 to 11 weeks. It’s recommended to start it before going under contract, not after.
An accountant with IRS-authorized Acceptance Agent status can handle the process. Typical professional fees run $100 to $300.
4. Open a U.S. bank account
This is practically essential before closing. The account lets you receive funds from the title company, pay your mortgage installment, receive rental income, and pay HOA fees, insurance, and property tax without incurring international wire transfer fees every month.
Banks that work with Latin American non-residents: Bank of America, Wells Fargo, Citibank, and Amerant Bank. Citibank in particular has a presence in Colombia and Mexico, which makes the initial banking relationship easier.
Opening an account may require an in-person visit to a U.S. branch in some cases. If you already have an LLC, a business account under the LLC’s name is generally more accessible than a personal account.
5. Understand the taxes that apply to you {#step-5}
Property tax: an annual local tax calculated on the property’s assessed value by the county. In the Orlando area (Orange and Osceola counties), the effective rate ranges from 0.8% to 1.2%. Foreign investors don’t qualify for the Homestead Exemption that reduces the amount for primary residents.
Federal income tax on rental income: rental income generated in the U.S. is taxed federally. The standard withholding for non-residents is 30% of gross income, but electing to be taxed on net income (Form 1040-NR) is generally more advantageous and allows you to deduct operating expenses. Florida has no state income tax, which lowers the overall burden compared to other states.
Deductible expenses: mortgage interest, maintenance and repairs, insurance, property tax, property management commissions, rental platform fees, legal and accounting fees, and depreciation of the property (typically over 27.5 years for residential properties). Depreciation reduces taxable income without involving a cash outlay, which can have a substantial impact on the tax owed.
Estate tax: covered in step 2. The $60,000 threshold for non-resident aliens makes the ownership structure critical.
FIRPTA: when selling, the buyer is required to withhold 15% of the gross sale price and remit it to the IRS as an advance on capital gains tax. If the actual tax owed is lower, you can request a refund by filing the corresponding return. There’s an exception: if the sale price is under $300,000 and the buyer certifies they’ll use the property as a primary residence, no withholding applies.
For the full detail on each tax, check the taxes for foreigners in Florida guide.
6. Work with a title company and insure the property {#step-6}
The title company is the neutral third party that manages the closing in Florida. Its functions include:
- Title search: reviewing public records to confirm there are no liens, uncancelled mortgages, encumbrances, or legal disputes over the property.
- Escrow management: transaction funds are held in an escrow account until all closing conditions are met.
- Deed recording: the new deed gets recorded with the county within 24 to 48 hours of closing.
- Title insurance issuance: a policy that protects you against title claims that arise after closing. It’s paid once at closing and covers you for the entire time you own the property.
Additional required insurance:
- Homeowner’s insurance: covers structural damage. Mandatory if there’s a mortgage. In the Orlando area, annual cost runs $3,500 to $6,000 for a $400,000 property.
- Wind/hurricane insurance: included in most standard Florida policies, but it’s worth verifying explicitly.
- Flood insurance: mandatory for properties in FEMA risk zones. Purchased separately and can cost an additional $1,500 to $4,000 a year.
- Liability insurance: covers the owner if someone gets injured on the property and sues. Especially relevant for rental properties.
For vacation rental properties, verify that the policy covers use as an Airbnb or VRBO. Standard homeowner policies generally don’t cover this.
7. Verify local regulations before buying
This is the step most often skipped in remote investments, and the one that causes the most problems after closing.
Short-term rental zoning: many Florida cities and counties have specific zones where short-term rental is allowed and zones where it’s prohibited or restricted to 30-day minimums. Before buying a property with the intention of operating on Airbnb or VRBO, confirm that the specific address is within an STR-eligible zone. Your agent can verify this against the county’s zoning map.
Operating licenses: vacation rental properties require a Florida state license (DBPR, renewable annually), a county inspection certificate, and registration with the Florida Department of Revenue to collect and remit the tourist development tax. The total tourist tax in most Orlando-area counties runs between 12% and 13% of gross rental income.
HOA rules: if the property is in an HOA community, that association’s rules can prohibit or restrict short-term rental regardless of what the municipality allows. Review the HOA documents (Declaration of Covenants, Conditions, and Restrictions) during the due diligence period.
8. Sign remotely: it’s possible and it’s legal
Florida is one of the most advanced states for remote real estate closings. For Colombian and Mexican investors, this means they can complete the entire process without traveling to the U.S.
Electronic signature: most purchase contract documents are signed digitally through platforms like DocuSign or PandaDoc. These are legally valid in Florida.
Remote online notarization (RON): Florida allows online notarization. For documents that require a notarized signature (like the deed or certain mortgage documents), you can appear before a certified Florida notary via live video call. The notary verifies your identity, witnesses your signature, and applies their digital seal.
Power of attorney (POA): if you’d rather designate someone to sign on your behalf, a power of attorney granted in Colombia or Mexico, properly apostilled, is valid in Florida. Your attorney or a title company representative can act as your agent.
9. File income and expenses annually
As the owner of a U.S. property that generates income, you’re required to file a federal tax return with the IRS every year. This applies regardless of whether you live in the U.S. or not.
The return includes gross rental income and all deductible expenses: mortgage interest, maintenance, insurance, property tax, platform and property manager commissions, legal and accounting fees, and the property’s annual depreciation.
For Colombian investors: income from Florida must also be reported to the DIAN. Since there’s no comprehensive double-taxation treaty between Colombia and the U.S., there’s a risk of being taxed in both countries on the same income. An accountant experienced in both systems can minimize that impact.
For Mexican investors: income from Florida must be reported to the SAT. Mexico and the U.S. have a partial tax treaty that can reduce the double-taxation burden in some cases. A bi-national accountant can determine how it applies to your specific situation.
10. Build your professional team {#step-10}
A well-executed real estate investment in Florida from Colombia or Mexico depends on having the right professionals coordinated with each other.
- A real estate agent experienced with foreign buyers: knows which communities allow short-term rental, which lenders work with foreign national loans, and how to coordinate a remote closing without hiccups.
- A CPA experienced with international investors: structures the LLC, prepares annual IRS filings, and can advise on tax implications in Colombia or Mexico.
- A real estate attorney: reviews the purchase contract, verifies title, advises on ownership structure, and oversees the closing or works directly with the title company.
- A property manager: essential if the property generates income and you’re not physically present in Florida. For vacation rentals, the typical commission is 20% to 35% of gross income. For long-term rentals, 8% to 12% monthly.
- A mortgage broker (if financing): specialized in foreign national loans and DSCR loans. Can compare terms across multiple lenders and guide you through the required documentation.
Key differences between Colombian and Mexican investors
| Aspect | Colombia | Mexico |
|---|---|---|
| Estate tax treaty with the U.S. | No treaty | Partial (limited protection) |
| Local tax ID equivalence | RFC does not apply | RFC accepted by some lenders |
| Banking documentation | Apostilled letter from a Colombian bank | Apostilled letter from a Mexican bank |
| FIRPTA withholding when selling | 15% standard | 15% standard |
| Reporting obligation in home country | DIAN | SAT |
| Double taxation risk | High (no comprehensive treaty) | Medium (partial treaty applies) |
Frequently asked questions
Can I buy in Florida without traveling to the U.S.?
Yes. The entire process, from offer to closing, can be completed remotely with electronic signature and online notarization. Many Colombian and Mexican investors close without ever setting foot in Florida.
Do I need a visa to buy property in Florida?
No. Buying property doesn’t require a visa. If you want to visit your property, you enter the U.S. with whatever visa corresponds to your nationality, generally B1/B2 for Colombian and Mexican citizens.
Do I need to report my Florida property to my home country’s tax authorities?
Yes. Both Colombia and Mexico require their citizens to report foreign assets and income. Failing to do so is a compliance risk in your home country, separate from your obligations to the IRS.
What happens to my Florida property if I die without a will or trust?
The property goes through probate in Florida. The court determines the heirs according to the state’s intestacy law, which may not match your intentions. The process is public, takes 6 to 18 months, and requires your heirs to hire an attorney in Florida. A revocable trust or an LLC with a clear operating agreement avoids this entirely.
How fast can the purchase close?
For a financed purchase, 30 to 45 days from accepted offer. For a cash purchase, it can be as fast as 15 to 21 days. The ITIN is the element that takes the longest: apply for it before you’re actively searching for properties.
Can I rent the property on Airbnb?
It depends on the community and zoning. Kissimmee, Davenport, and Clermont have zones specifically approved for short-term rental. Other areas have restrictions. Verify the zoning and HOA rules before buying if that’s your plan.
Are you evaluating a purchase in Florida and want to confirm every legal step is covered for your specific case?
Schedule a free consultation with our team and we’ll review your structure, your ITIN, your taxes, and your closing plan together before you sign anything.
