Buying property in the United States as a Colombian or Mexican citizen is legal, straightforward in structure, and genuinely accessible. What trips people up isn’t the process itself. It’s arriving unprepared for the documentation, the tax exposure, and the legal decisions that need to be made before closing, not after.
This checklist walks through every legal step, in order, with the specific requirements that apply to investors from Colombia and Mexico. Some steps are identical for both nationalities. A few differ, and those differences matter.
Step 1: confirm your legal right to buy
Foreign nationals can buy real estate in the U.S. without restrictions. No visa, no residency, no citizenship required. The purchase itself doesn’t grant any immigration benefit, and there’s no minimum investment amount tied to property ownership.
What you do need before anything else:
- Valid passport (current, not expired)
- A U.S. taxpayer identification number, either an ITIN (Individual Taxpayer Identification Number) or an SSN (Social Security Number) if you have one
The ITIN is what most Colombian and Mexican investors use. It’s issued by the IRS through Form W-7 and takes 7 to 11 weeks to process. You don’t need one to make an offer or sign a purchase contract, but you’ll need it before closing and definitely before your first rental income hits. File for it early.
Step 2: decide on the ownership structure before you sign anything
This is the decision most investors defer until after closing, which is the wrong order. The ownership structure determines how the property is titled, how you’re taxed, and what happens to the asset if you die or get sued.
- Option A: personal name Simple. No setup costs. But your name appears in Florida’s public property records, you have unlimited personal liability if someone is injured on the property, and if you die, the property goes through Florida probate, a court process that can take 6 to 18 months and costs $5,000 to $20,000 in legal fees, with your family in Colombia or Mexico waiting on the other end.
- Option B: Florida LLC The most common structure for foreign investors. The LLC holds the property, not you personally. Your name doesn’t appear in the property registry; the LLC does. If someone sues over a property incident, they can only reach the LLC’s assets. And when you die, your heirs inherit your membership interest in the LLC, not the property directly, which avoids Florida probate.
Cost to form: around $125 to $200 in state fees, plus registered agent fees. Annual renewal: $138.
Option C: LLC owned by a revocable trust Used by investors with multiple properties or larger estates. The trust handles succession cleanly across generations without probate. Setup requires an attorney and costs $3,000 to $6,000 to do correctly.
One critical note for Colombian and Mexican investors: The U.S. estate tax applies to non-resident foreigners on assets above $60,000. For a $500,000 property held personally, the potential estate tax exposure is approximately $176,000, payable by your heirs before they can receive the property. The inheritance tax risks for foreign property owners in Florida are specific enough that they warrant a separate read before you decide on ownership structure. An LLC with the right setup can reduce this exposure, though the specifics require legal advice tailored to each case. Neither Colombia nor Mexico has a comprehensive estate tax treaty with the U.S. that would protect most investors from this risk.
Step 3: open a U.S. bank account
You need a U.S. bank account to receive wired funds from the title company at closing, to pay the mortgage (if financing), and to receive rental income.
For Colombians and Mexicans, options include Bank of America, Wells Fargo, and Citibank. All three have experience working with non-resident Latin American investors and accept ITIN in place of SSN for account opening at select branches. Citibank in particular has a retail presence in both Colombia and Mexico, which simplifies the relationship.
Open the account before you’re under contract. Wire transfers from abroad require advance setup and verification, and the title company won’t wait.
Step 4: get pre-approved for financing (if applicable)
If you’re not paying cash, you need a pre-approval letter before making a serious offer. Two loan types are available to Colombian and Mexican investors without American credit history:
- Foreign national loan: Requires a down payment of 25% to 30%, a bank reference letter, 6 months of bank statements, and income documentation. Rates in 2026 range between 7.5% and 9% annually.
- DSCR loan: Requires no personal income documentation. Instead, the lender evaluates whether the projected rental income from the property covers the mortgage payment. Rates are slightly higher (8% to 10%), but it’s the cleaner option for investors who are self-employed or whose income is difficult to document in a format American underwriters recognize.
- Both loan types are available to Colombian and Mexican passport holders. The pre-approval process takes 3 to 10 business days.
- Mexican investors: Some lenders accept the RFC (Registro Federal de Contribuyentes) as supplementary tax identification. Confirm this with the lender before applying.
- Colombian investors: Bank statements from Bancolombia, Davivienda, or similar large institutions are generally accepted with an apostilled bank reference letter.
Step 5: hire a real estate attorney
In Florida, a real estate attorney isn’t legally required, but for a foreign buyer, skipping one is a significant risk. The purchase contract is a legally binding document. If you sign something you don’t fully understand, you’re bound by it.
A real estate attorney for foreign buyers typically reviews the purchase contract, advises on the ownership structure, helps with ITIN setup, coordinates with the title company, and can prepare the LLC or trust documents before closing. Attorney fees for a standard residential transaction range from $1,000 to $2,500.
This is separate from the title company, which handles the closing itself.
Step 6: understand the purchase contract and due diligence period
Once a seller accepts your offer, you’ll sign a Florida Residential Contract for Sale and Purchase (or a similar form). Key terms to understand:
- Effective date: The date both parties sign. Most deadlines in the contract are calculated from this date.
- Inspection period (due diligence): Typically 10 to 15 days from the effective date. During this window, you can have the property professionally inspected and withdraw from the contract for any reason without losing your deposit. Don’t skip the inspection because you’re buying remotely.
- Financing contingency: If you’re using a loan, this clause gives you a set number of days to secure financing. If the loan falls through, you can exit the contract without penalty.
- Closing date: Usually 30 to 45 days from the effective date for financed purchases, sometimes faster for cash.
- Deposit (earnest money): Typically 1% to 3% of the purchase price, held in escrow by the title company. If you cancel outside the allowed windows, you may lose this deposit.
Step 7: complete the property inspection
Hire a licensed Florida home inspector. The inspection covers the structure, roof, electrical, plumbing, HVAC, and appliances. Cost: $300 to $600 depending on property size.
Specific items to verify for a rental property:
- HVAC age and condition (replacement costs $5,000 to $12,000 in Florida)
- Roof age and material (Florida insurers charge significantly more for older roofs)
- Pool equipment and condition (if applicable)
- Evidence of water intrusion or mold
- Electrical panel type (some older panels are flagged by insurers)
If the inspection reveals issues, you can negotiate a price reduction, ask the seller to repair, or walk away during the due diligence period.
Step 8: review the title and HOA documents
Title search: The title company runs a search of the property’s public records to confirm there are no outstanding liens, unpaid HOA fees, open permits, or unresolved legal claims attached to the property. This is standard in every Florida closing.
Title insurance: Two policies are typically issued — owner’s title insurance and lender’s title insurance (if you have a mortgage). The owner’s policy protects you against claims that surface after closing that weren’t found in the title search. It’s a one-time premium paid at closing.
HOA documents (if applicable): Florida law requires sellers to provide HOA governing documents before closing. Review the rules carefully for:
- Whether short-term rental (Airbnb, VRBO) is allowed
- Minimum rental period restrictions
- Pet policies and lease approval requirements
- Any pending special assessments (extraordinary charges to all owners for major repairs)
- The HOA’s reserve fund balance — a low reserve fund is a yellow flag for future assessments
Step 9: obtain property insurance before closing
Lenders require proof of insurance before they fund the loan. Even if paying cash, insurance is mandatory to protect the asset.
Florida property insurance covers wind damage (including hurricanes) under most standard policies. Flood insurance is separate and required by lenders for properties in FEMA flood zones. Check the property’s flood zone status before closing.
For rental properties, confirm the policy covers rental use. Standard homeowner policies often don’t. A landlord policy or a specific short-term rental policy is required if you plan to rent through Airbnb or similar platforms.
Insurance quotes vary significantly in Florida in 2026. Get at least three quotes. For a $400,000 property in the Orlando area, budget between $3,500 and $6,000 annually for a combined policy.
Step 10: understand FIRPTA before closing
FIRPTA (Foreign Investment in Real Property Tax Act) is the federal law that governs the sale of U.S. real property by foreign nationals. Every foreign buyer needs to understand it before they close, even though FIRPTA applies at the time of sale, not purchase.
When you eventually sell the property, the buyer is required to withhold 15% of the gross sale price and send it to the IRS as a prepayment of your capital gains tax. This withholding happens regardless of whether you owe that much in actual tax. If your real tax liability is lower, you file a return and get the difference back.
There is an exemption: if the sale price is under $300,000 and the buyer intends to use the property as their primary residence, no withholding is required.
Practical implication: when you sell, your net proceeds at closing will be reduced by 15%. Plan for this in your exit strategy calculations. A full breakdown of what FIRPTA means in practice for foreign investors covers the exemptions, the refund process, and how to factor the withholding into your return projections.
Step 11: close the transaction
Closing in Florida can be done in person or remotely. For international buyers, remote closing is common and legally valid. The title company sends documents electronically, you sign via a notary in your country (with apostille on certain documents), and funds are wired to the title company in advance of the closing date.
At closing, you’ll receive:
- The HUD-1 or Closing Disclosure (final breakdown of all costs)
- The warranty deed (transfers title to you or your LLC)
- The title insurance policies
- Loan documents (if financed)
The title company records the deed with the county within 24 to 48 hours of closing. After that, you’re the legal owner.
Step 12: register for taxes and set up rental compliance
After closing, several registrations are required before you can legally rent the property:
- IRS registration: If you have rental income, you must file an annual U.S. tax return (Form 1040-NR for individuals, or the appropriate form for your LLC). A U.S.-based accountant experienced in foreign investors handles this.
- Florida vacation rental license: Required for any property rented for periods of less than 30 days. Filed with the Florida Department of Business and Professional Regulation (DBPR). Renewal is annual.
- Local tourist development tax: Florida counties charge a tourist development tax on short-term rentals (6% to 13% total depending on the county). You register with the county tax collector’s office and remit monthly.
- Homeowner association registration: If the property is in a community with an HOA, notify them of the new ownership and confirm all rental rules in writing.
Key differences between Colombian and Mexican investors
| Item | Colombian investors | Mexican investors |
|---|---|---|
| Estate tax treaty with U.S. | No treaty | Partial treaty (limited protection) |
| RFC equivalence | Not applicable | RFC accepted by some lenders |
| Bank documentation | Apostilled letter from Colombian bank | Apostilled letter from Mexican bank |
| FIRPTA withholding at sale | 15% (standard) | 15% (standard) |
| Tax filing obligation | Yes (Form 1040-NR) | Yes (Form 1040-NR) |
| Double taxation risk | High (no comprehensive treaty) | Medium (partial treaty applies) |
Legal checklist summary
| Step | Action | When |
|---|---|---|
| 1 | Confirm eligibility and file for ITIN | Before closing |
| 2 | Choose ownership structure (personal/LLC/trust) | Before signing contract |
| 3 | Open U.S. bank account | Before going under contract |
| 4 | Get pre-approved for financing | Before making offer |
| 5 | Hire real estate attorney | Before signing contract |
| 6 | Review and sign purchase contract | Offer acceptance |
| 7 | Complete property inspection | During due diligence period |
| 8 | Review title and HOA documents | During due diligence period |
| 9 | Obtain property insurance | Before closing |
| 10 | Understand FIRPTA obligations | Before closing |
| 11 | Close the transaction | Closing date |
| 12 | Register for taxes and rental compliance | Within 30 days of closing |
Frequently asked questions
Can I buy in Florida without visiting the United States?
Yes. The entire process, from offer through due diligence, signing, and closing, can be completed remotely. You’ll need a notary in Colombia or Mexico to certify certain documents with apostille, and a wire transfer to the title company in the U.S. Many Colombian and Mexican investors close without ever boarding a plane.
Do I need to report my Florida property to tax authorities in Colombia or Mexico?
Yes. Both countries require residents to declare foreign assets and income. A Colombian investor with rental income in Florida must declare it to the DIAN. A Mexican investor must declare it to the SAT. Failure to declare is a compliance risk in your home country, separate from your U.S. obligations.
What happens to my Florida property if I die without a will or trust?
It goes through Florida probate. The court will determine the heirs based on Florida intestacy law, which may or may not match your intentions. The process is public, takes 6 to 18 months, and requires your heirs to hire a Florida attorney. A revocable trust or a properly structured LLC with a clear operating agreement avoids this entirely.
Is a Colombian or Mexican power of attorney valid in Florida?
A power of attorney issued in Colombia or Mexico can be used in Florida if it’s properly apostilled and meets Florida’s formal requirements. It allows someone to sign on your behalf at closing if you can’t be present. Your Florida real estate attorney can confirm the specific requirements.
Can my spouse or children be co-owners of the property?
Yes. You can add any person as a co-owner on the title or as a member of the LLC. For non-resident foreign co-owners, each person needs their own ITIN. Consider the estate tax implications of adding family members, as this is an area where legal advice pays for itself.
How long does the full process take from offer to closing?
For a financed purchase, typically 30 to 45 days from an accepted offer. For cash purchases, it can be as fast as 15 to 21 days. The ITIN process is the longest single element. File for it before you’re actively searching for a property.
If you’re ready to move forward or have questions specific to your situation, schedule a free consultation with our team.
