Why invest in Florida real estate as a European?
European investors mainly look for diversification outside their own country and outside the euro, a rental market supported by newcomers, and a favourable state tax framework: Florida levies no personal income tax. These strengths come with trade-offs, including currency risk, the cost of insurance and US federal taxation.
Florida is not a single market. Miami, Fort Lauderdale, West Palm Beach, Tampa and Orlando follow different dynamics, and the same neighbourhood can vary a great deal from one street to the next. This is why our operations are not limited to Miami: they cover the whole of Florida, with a strong presence in the south-east, and target mid-market residential buildings, neither luxury nor up-and-coming areas.
No state income tax does not mean no tax: US federal income tax applies, as do local property taxes.
Can a non-resident buy property in Florida?
Yes. The United States has no general restriction on foreigners buying real estate, and a resident of Europe or the UAE can buy in Florida directly or through a company. Since July 2023, a Florida law restricts certain purchases by nationals of seven designated countries (including China, Russia and Iran). France, the other EU countries, Switzerland, the UK and the UAE are not among them.
In practice, the purchase goes through a closing agent (title company or attorney) who checks the title, receives the funds and records the sale. Title insurance protects the buyer against earlier defects in ownership.
What is an LLC and why use one to invest in the United States?
An LLC (Limited Liability Company) is a flexible US company whose members are, in principle, liable only up to their contribution. It is widely used to hold real estate: it separates the property from personal assets and makes it easier to bring in several members and to transfer shares. How it is taxed depends on its elections and on each member's situation.
In Florida, LLCs are registered with the state's Division of Corporations, which publishes a searchable online register (Sunbiz). In a club deal, each investor becomes a member of the LLC that owns the building, in proportion to their contribution.
Important: an LLC does not make tax disappear. Depending on its form and elections, income may be taxed directly at member level, and members must then report their share in the United States and in their country of residence. Groupe OPERA supports its investors with these filings, working with tax professionals.
Do you need a US tax number to invest in Florida?
Usually, yes. An LLC must obtain an Employer Identification Number (EIN) from the US tax authority (IRS). A foreign investor who has to file a US tax return needs an Individual Taxpayer Identification Number (ITIN), unless they already have a Social Security number.
These applications are made to the IRS, directly or through a professional. They take several weeks, so plan ahead of the first filing.
How is income from a Florida investment taxed for a non-resident?
In general, a non-resident is taxed in the United States on US-source income and gains, including real estate. When a foreign person sells US property, the buyer must in principle withhold 15% of the sale price under FIRPTA, as a prepayment of the tax due. The income must also be reported in the country of residence, under the applicable tax treaty.
Three points deserve particular attention:
- FIRPTA withholding on sale. It is generally 15% of the sale price when the seller is a foreign person. It is a prepayment: the actual tax is calculated afterwards, and any excess is refunded.
- US estate tax. For someone who is neither a US citizen nor a US resident, assets located in the United States, including real estate, may be subject to US estate tax. A return is required once US assets exceed $60,000 at death. How the property is held and the applicable treaty make a big difference.
- Reporting in your country of residence. A tax resident of France, Belgium, Switzerland, Luxembourg or the UK must report this income at home, under their country's treaty with the United States. A UAE resident falls under a different framework.
Cross-border taxation is technical. Groupe OPERA guides and coordinates, but for any personal situation, written advice from a specialist tax adviser remains essential.
What are the main risks of Florida real estate?
On top of the risks of any real estate investment (capital loss, liquidity, market), Florida has specific risks: hurricanes and flooding, high insurance costs that have risen sharply in recent years, property taxes and, for a European investor, euro-dollar currency risk.
| Risk | Why it matters in Florida |
|---|---|
| Climate | Hurricane season from June to November, flood zones: location and build quality affect value and insurance. |
| Insurance | Home insurance premiums have risen sharply, reducing net yield; some insurers have left the market. |
| Property taxes | They are recalculated from the property's value and can rise after a purchase or works. |
| Currency | A dollar asset sold when the dollar is weaker can reduce, or wipe out, the gain in euros. |
| Tax | Withholding on sale, estate tax, double reporting: costs to anticipate. |
Miami or the rest of Florida: where to invest?
Miami is the best-known market, but also one of the most expensive and competitive. Other Florida cities and counties offer lower entry prices and different rental dynamics. The right choice depends less on the city than on the property, its purchase price and its potential to add value.
This is why our club deals are not limited to Miami: our local partner, active in Florida for 25 years, looks for undervalued buildings across the state.