How many times have you been approached not only here in Florida, but even in your own country, wherever in the world that may be, about investing in Florida, its beautiful beaches and the great South Beach lifestyle?
With over 220,000 realtors in Florida it is easy to have even family members approach you and convince you that it is a no brainer to invest in Florida property. My favorite lines from these individuals are: “I know some people that could get you a great deal” or “Don’t worry about it, I know people that could get the deal done even if you have (whatever issue)”. The truth is that buying in Florida could be a great investment.
The problem is that not all these realtors, family members or friends are giving you the proper advice on how to structure the transaction for your investment to avoid the pitfalls that come from being a foreigner owning property in Florida. There are many issues that you have to consider, including without limitation, liability, taxes, your immigration status, FIRPTA, and probate laws for foreigners. What happens to your asset in the event of your death? Is your family protected?
What percentage of taxes will you have to pay? Are you violating your tourist visa? If you sell, how does the IRS treat the transaction? These are all important questions that you have to ask a professional who can properly advise you. Usually it would be a lawyer, an accountant, maybe even a realtor, or most of the time you need all these professionals to work together to make sure you have the right knowledge to make the most informed decision about investing in the great State of Florida, which I am proud to call home.
#PLSHelp © Gustavo A. Gutierrez, Esq.