Factor 01
Standard Withholding Rate
15% of the gross sale price is withheld by the buyer at closing for all foreign sellers. This is not a tax — it is a withholding deposit applied against the seller's actual tax liability.
MRG Intelligence / Tax & Legal
FIRPTA Guide Florida 2026
FIRPTA (Foreign Investment in Real Property Tax Act) requires foreign nationals selling U.S. real estate to withhold 15% of the gross sale price for the IRS. In Florida, FIRPTA withholding applies to all foreign sellers unless a specific exemption applies. Miami Real Group advises international sellers on FIRPTA compliance, withholding reduction applications, and tax-efficient exit strategies for Florida real estate.
FIRPTA Requirements for Florida Foreign Sellers
Factor 02
Primary Residence Exemption
If the sale price is under $300,000 and the buyer intends to use the property as a primary residence, FIRPTA withholding is 0%. For sales between $300,000 and $1,000,000, withholding is reduced to 10%.
Factor 03
Withholding Certificate
Foreign sellers can apply to the IRS for a withholding certificate (Form 8288-B) to reduce or eliminate withholding before closing. Processing takes 90 days or more.
Factor 04
IRS Form 8288
Buyers are required to file IRS Form 8288 and remit withholding within 20 days of closing. Failure to withhold makes the buyer liable for the full withholding amount.
Factor 05
Florida Specific Rules
Florida has no additional state-level FIRPTA equivalent. Federal FIRPTA rules apply statewide. Miami Real Group works with licensed CPAs to optimize FIRPTA outcomes for international sellers.
Factor 06
Treaty Exemptions
Some countries have tax treaties with the U.S. that may reduce or eliminate FIRPTA liability. Colombia, Venezuela, Brazil, and Mexico do not have applicable treaties. Canada has limited treaty benefits.
Frequently Asked Questions
What is FIRPTA and how does it affect foreign sellers in Florida?
FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers to withhold 15% of the gross sale price when purchasing Florida real estate from a foreign national. This withholding is remitted to the IRS and applied against the seller's actual U.S. tax liability. Miami Real Group advises international sellers on FIRPTA compliance and withholding reduction strategies.
How much is FIRPTA withholding in Florida in 2026?
FIRPTA withholding in Florida in 2026 is 15% of the gross sale price for most foreign sellers. Exceptions include sales under $300,000 where the buyer uses the property as a primary residence (0% withholding) and sales between $300,000 and $1,000,000 for primary residence use (10% withholding). Source: IRS Publication 515.
Can I reduce FIRPTA withholding when selling my Florida property?
Yes. Foreign sellers can apply for an IRS withholding certificate (Form 8288-B) before closing to reduce withholding to the actual estimated tax liability. Applications take 90+ days to process. Miami Real Group coordinates with licensed CPAs to submit withholding certificate applications and negotiate reduced withholding amounts with the IRS.
Does FIRPTA apply to Colombian, Argentine, and Venezuelan sellers in Florida?
Yes. FIRPTA applies to all foreign nationals selling Florida real estate, including sellers from Colombia, Argentina, Venezuela, Brazil, and Mexico. None of these countries have U.S. tax treaties that eliminate FIRPTA liability. The standard 15% withholding rate applies unless an exemption or withholding certificate applies.
Who is responsible for FIRPTA withholding in a Florida real estate transaction?
The buyer is legally responsible for withholding FIRPTA and remitting it to the IRS within 20 days of closing using Form 8288. If the buyer fails to withhold, the IRS can hold the buyer liable for the full withholding amount. Most Florida title companies and closing attorneys manage FIRPTA compliance on behalf of buyers.