# Buying Property in Florida as a Canadian: The Complete 2026 Guide

> Florida is the top U.S. destination for Canadian buyers — by a significant margin. Ontario buyers alone account for a large share of Canadian-owned Florida properties, followed...

- URL: https://maxliferealty.com/blog/canadians-buying-florida
- Author: Ryan Solberg, Florida real estate broker (BK3354351), MaxLife Realty
- Published: 2025-04-11
- Last updated: 2026-09-28
- Category: Investment

## Key Takeaways

- Non-residents don't qualify for Florida homestead exemption — annual property taxes on a $700K home run $7,000–$10,000 vs. the lower homestead rate U.S. residents pay
- FIRPTA withholding: when you eventually sell, 15% of the gross sale price is withheld at closing — on a $900K sale, $135K withheld regardless of your actual capital gain
- U.S. estate tax for non-resident aliens: only $60,000 exemption vs. $13M+ for U.S. persons — a $900K Florida property held personally creates significant estate tax exposure
- Financing: Canadian buyers typically can't use conventional U.S. mortgages (no SSN or U.S. credit history); foreign national programs require 25–35% down at above-market rates
- Best neighborhoods for Canadian buyers: Dr. Phillips (established foreign buyer community), Windermere/Butler Chain (lakefront comparable to cottage country), Winter Park (Yorkville-like walkable character)
- Ownership structure (personal vs. LLC vs. Canadian holding company) must be decided before closing, not after — it has major estate tax and income reporting implications
- Annual carrying costs beyond the mortgage easily run $15,000–$25,000 on a $700K property (taxes, insurance, flood, management fees if renting)

# What Canadians Need to Know Before Buying Property in Orlando

Florida is the top U.S. destination for Canadian buyers — by a significant margin. Ontario buyers alone account for a large share of Canadian-owned Florida properties, followed by Quebec, British Columbia, and Alberta. And within Florida, the Orlando market is where I consistently see Canadians land: [Dr. Phillips](https://maxliferealty.com/dr-phillips) and [Windermere](https://maxliferealty.com/windermere) for the lifestyle and luxury, [Lake Nona](https://maxliferealty.com/lake-nona) for the newer construction and medical community employment ties, and gated communities along the I-4 corridor for the part-year rental model.

Here's what makes a cross-border purchase work — and what trips people up.

> **Working with Canadian buyers is something I do year-round.** If you'd rather talk it through than read, [book a free consultation](https://maxliferealty.com/contact) — 20 minutes with an Orlando broker saves weeks of cross-border guesswork. Or [browse current listings](https://maxliferealty.com/listings) to get a feel for the market first.

## Yes, Canadians Can Buy — and Florida's Foreign-Ownership Law Doesn't Apply to You

![People carrying moving boxes into a sunlit new Central Florida home](https://maxliferealty.com/images/blog/inline/relocation-moving-2.jpg)

There are no federal restrictions on foreign nationals owning U.S. real estate — you don't need a visa, green card, or residency to own a Florida home. And Florida's 2023 foreign-ownership law (SB 264) does **not** affect Canadians: it restricts buyers tied to a short list of "countries of concern" (China, Russia, Iran, North Korea, Cuba, Syria, and Venezuela's regime). Canada isn't on it. You buy with the same ownership rights and the same title insurance as a U.S. citizen — the "foreign buyers can't get clear title" idea is a myth.

## Get Your ITIN Early — Before You Start Shopping

An **Individual Taxpayer Identification Number (ITIN)** is the IRS's ID for people without a U.S. Social Security number. You'll need one to complete closing paperwork, file a U.S. return if you rent the property, and reclaim any FIRPTA withholding down the road. Apply with **Form W-7** through an IRS-Certified Acceptance Agent — it can take 7–11 weeks, so start it before you go house-hunting, not at the closing table.

## Know the Real Cost Before You Fall in Love With a House

Property taxes and insurance in Florida are real budget items. On a $700,000 home in Orange County, expect annual property taxes around $7,000–$10,000 (assuming no homestead exemption — non-residents don't qualify). Wind and general homeowners insurance has risen sharply since 2022; budget $4,000–$8,000/year for a single-family home depending on age, roof type, and location. Flood insurance is separate and mandatory in many zones. I tell Canadian clients: run the carrying cost before you run the purchase price.

One Florida-specific warning: get **actual insurance quotes before you make an offer**, not estimates. Premiums hinge on roof age (many insurers won't cover a roof older than ~15 years), and a **4-point inspection** (roof, HVAC, plumbing, electrical) plus a **wind-mitigation inspection** are often required — the wind-mitigation report can meaningfully lower your premium, so it's worth doing.

## Financing as a Foreign National

You can get a U.S. mortgage as a Canadian citizen — it just requires more documentation. Cross-border specialists like RBC Bank (U.S.) or CIBC's U.S. mortgage division work with Canadians regularly. Expect a 25–30% down payment requirement, and rates 0.5%–1% above standard conforming loans. Many Canadian buyers in the $600,000–$1.2M range opt for cash purchases to simplify the transaction, then explore home equity financing later.

Also factor in the Canadian dollar exchange rate. When the CAD is at 0.72–0.75 against the USD, a $900,000 purchase costs over $1.2M Canadian. That's a number worth running before you make an offer. Many Canadian buyers lock their rate with a **forward contract** through a currency specialist (Wise, OFX, or a bank's FX desk) — agreeing today on the exchange rate for a closing up to a year out — so a swing in the loonie between offer and closing doesn't blow up the budget.

## FIRPTA — The Rule That Surprises Everyone at Closing

This is where most buyers get caught off guard. FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer's title company to withhold **15% of the gross sale price** when a foreign national sells U.S. real estate. That's 15% of the sale price — not the gain.

On a $700,000 sale, that's $105,000 withheld at closing and submitted to the IRS, pending your U.S. tax return filing. You can get it back — but it requires filing a U.S. non-resident return (Form 1040-NR), and the process takes 6–12 months. (You can also apply for a withholding certificate on **Form 8288-B** to reduce the amount up front.) Plan for it, and work with a cross-border CPA — not just a Canadian accountant — well before you're ready to sell.

## How Long You Can Stay: Two Different 182-Day Clocks

Canadians are admitted to the U.S. as visitors without a visa (you don't use the ESTA / Visa Waiver Program that travelers from other countries do). The catch is that **two separate clocks** run, and people constantly confuse them:

- **Immigration:** generally up to ~182 days per rolling 12-month period as a visitor — admission is always at the border officer's discretion.
- **Taxes:** the IRS "substantial presence test" counts all your days this year, plus 1/3 of last year's, plus 1/6 of the year before. Cross 183 on that formula and the IRS can treat you as a U.S. tax resident on your *worldwide* income — and because of the weighting, that threshold bites at a **lower** day count than the immigration limit for someone who comes every winter.

If you're here part of every year, file **Form 8840** (Closer Connection Exception) each year and lean on the Canada-U.S. tax treaty. A cross-border CPA keeps you on the right side of both clocks.

## Pick the Right Neighborhood for Your Use Case

This matters more than anything else. A part-year home used 3–4 months per year has different needs than a rental investment. For part-year use, gated communities with on-site HOA management work well — communities like Phillips Grove and Turtle Creek in [Dr. Phillips](https://maxliferealty.com/dr-phillips) or Keene's Pointe in Windermere have maintained grounds and low-maintenance exteriors. For a rental investment, you want a location with tight vacancy — south Orange County near Lake Nona (zip code 32827) and southwest Orange (32836) have strong year-round rental demand driven by hospital and airport employment.

## HOA Rules Can Kill a Rental Strategy

Don't assume you can rent a property short-term. HOA communities in Florida vary widely — some allow 30-day minimum rentals, others allow 12-month leases only, and some prohibit rentals entirely. Read the CC&Rs before you close, not after. I've had clients fall in love with a community only to discover on day three of due diligence that their Airbnb plan was prohibited. The title company will not catch this for you.

## Property Management Is Not Optional for Absentee Owners

A professional property manager costs 8–12% of monthly rent, or a flat fee for seasonal oversight. In Orlando, that runs about $150–$250/month for a home that's occupied by owners part-time and vacant the rest. That fee covers: hurricane shutter deployment, AC system monitoring (critical — a dead AC in July causes mold within days), vendor coordination, and emergency response. For Canadian buyers who fly home in May, this isn't optional — it's basic risk management.

## Get the Right Professionals in Place Early

You need a Florida real estate attorney (not just a title company), a cross-border CPA familiar with FIRPTA and the Canada-U.S. Tax Treaty, and a local agent who knows the neighborhoods you're considering. At MaxLife Realty, I work with Canadian buyers regularly and can connect you with the professionals who make these transactions run smoothly. [Reach out to start the conversation.](https://maxliferealty.com/contact)

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*Planning a move to Orlando? The [Complete Orlando Relocation Guide](https://maxliferealty.com/moving-to-orlando) covers income tax savings by state, home price comparisons, and which neighborhood fits where you are coming from.*

## How to Buy Florida Real Estate as a Canadian

1. **Run the Full Annual Carrying Cost Before Falling in Love With a Price** — Canadian buyers often focus on purchase price and underestimate ongoing carrying costs. For a $700,000 home in Orange County: annual property taxes run $7,000–$10,000 (non-residents do not qualify for homestead exemption); homeowners insurance runs $4,000–$8,000/year (higher than Canada due to hurricane exposure); flood insurance is separate and mandatory in many zones ($1,500–$5,000/year); and if you're buying as a vacation/investment property, property management costs 8–12% of rental income. Total annual carrying cost beyond the mortgage can easily run $15,000–$25,000 on a mid-range property. Run this calculation for each property before your search, not after you go under contract.
2. **Understand Your Financing Options as a Canadian Buyer** — Standard U.S. conventional mortgages require a Social Security number and U.S. credit history — Canadian buyers typically don't qualify. The realistic options: foreign national mortgage programs (offered by U.S. portfolio lenders) that accept Canadian income documentation, require 25–35% down payment, and charge rates 0.5–1.5% above conventional; ITIN mortgages if you have a U.S. tax filing history; or all-cash purchase. Many Canadian buyers in the $500,000–$1.5M range purchase in cash to avoid financing complexity and to be competitive with U.S. buyers. If using a Canadian bank's U.S. affiliate (CIBC, TD, BMO all have U.S. retail operations), verify their current Florida lending capacity — availability varies by institution.
3. **Understand FIRPTA Withholding When You Eventually Sell** — FIRPTA (Foreign Investment in Real Property Tax Act) is the mechanism the U.S. government uses to collect capital gains tax from foreign sellers. When you sell your Florida property, the buyer's closing agent is required to withhold 15% of the gross sale price and remit it to the IRS — regardless of your actual tax liability. On a $900,000 sale, that is $135,000 withheld even if your capital gain is $80,000. You file a U.S. tax return, and the IRS refunds the excess over your actual tax. The process takes several months. Buy-side withholding is reduced if you purchase a property for $300,000 or less as a primary residence (withholding is 0%) or $300,001–$1M for primary use (withholding is 10%). Non-primary use properties above $1M: 15% full withholding. Work with a U.S. CPA familiar with Canadian cross-border transactions.
4. **Address U.S. Estate Tax Risk for Canadian Ownership** — This is the most commonly overlooked financial risk for Canadian buyers. U.S. estate tax applies to the U.S.-situs assets of non-resident aliens at the time of death. The U.S. estate tax exemption for non-resident aliens is only $60,000 — far below the $13M+ exemption available to U.S. persons in 2026. On a $900,000 Florida property held personally by a Canadian with no other U.S. assets, the U.S. taxable estate could be $840,000 after the exemption, subject to federal estate tax at rates up to 40%. Mitigation strategies include holding the property through a Canadian corporation or trust with appropriate treaty elections, or through a U.S. LLC owned by a Canadian holding company. This requires both a Canadian tax advisor and a U.S. estate attorney — ideally consulted before purchase, not after.
5. **Choose Between Personal Ownership and a Holding Structure** — The ownership structure decision involves trade-offs between simplicity, privacy, estate tax exposure, and Florida homestead eligibility. Personal ownership is simplest but maximizes U.S. estate tax exposure. A Florida LLC provides privacy and liability protection but cannot claim homestead exemption (relevant mainly if you're using the property as a primary Florida residence). A Canadian corporation owning a U.S. LLC can provide both estate tax planning and privacy, but adds complexity: annual LLC registration, possible FinCEN beneficial ownership reporting for the Canadian corporation if it registers to do business in a U.S. state (U.S.-formed LLCs have been exempt since 2025), potential effectively connected income issues, and more complex U.S. and Canadian tax filings. The right structure depends on property value, intended use (vacation/rental/primary), and your broader estate planning. Consult professionals before closing, not after.
6. **Select a Neighborhood Based on the Canadian Buyer Community and Lifestyle Fit** — Dr. Phillips is the most established foreign buyer community in Central Florida with strong Latin American representation, but also a significant Canadian community — particularly in the lakefront estates along Sand Lake and the gated communities off Turkey Lake Road. Windermere and the Butler Chain of Lakes attract high-net-worth Canadians seeking private lakefront living, with access to boating that resembles cottage country at significantly larger scale. Winter Park resonates with buyers from Toronto and Vancouver who value walkable, urban-adjacent character — Park Avenue's boutique retail and dining environment is comparable to Yorkville or Kitsilano. Celebration attracts Canadian buyers drawn to the planned community model and Disney proximity. Each neighborhood has different price points, lifestyle character, and community density.
7. **Open a U.S. Bank Account and Work With Cross-Border Professionals** — Opening a U.S. bank account before purchasing simplifies fund transfers and closing logistics significantly. Many Canadian buyers can open U.S. accounts at their Canadian bank's U.S. affiliate (TD Bank, BMO Harris, CIBC US) or at a U.S. regional bank with international programs. Wire transfers from Canadian accounts for real estate closings are accepted and routine, but having a U.S. account eliminates currency exchange timing risk and simplifies ongoing property expense management. Build a cross-border advisory team: a U.S. real estate agent experienced with Canadian clients, a U.S. real estate attorney familiar with cross-border transactions, a U.S. CPA who files returns for Canadian property owners, and a Canadian accountant who understands U.S. property income reporting on Canadian returns.

## Frequently Asked Questions

### Can Canadians buy property in Florida?

Yes. There are no citizenship or residency restrictions on foreign nationals purchasing real estate in Florida. Canadians buy Florida property regularly as vacation homes, retirement residences, and investment properties. The key considerations are financing (most Canadians need a foreign national mortgage or purchase in cash), tax structure (FIRPTA withholding when you sell, U.S. estate tax exposure if held personally), and ongoing carrying costs (property taxes without homestead exemption, insurance, and management fees).

### What is FIRPTA and how does it affect Canadian buyers selling Florida property?

FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer's closing agent to withhold 15% of the gross sale price when a foreign national sells U.S. real estate — not 15% of the profit, but 15% of the total sale price. On a $700,000 sale that is $105,000 withheld regardless of your actual capital gain. You file a U.S. non-resident tax return (Form 1040-NR) and the IRS refunds the excess over your actual tax liability, but the process takes months. Work with a cross-border CPA before you are ready to sell.

### Do Canadians pay U.S. estate tax on Florida property?

Yes. U.S. estate tax applies to the U.S.-situs assets of non-resident aliens at death. The exemption for non-resident aliens is only $60,000 — compared to $13M+ for U.S. persons. A $900,000 Florida property held personally by a Canadian exposes up to $840,000 to federal estate tax at rates up to 40%. Mitigation strategies include holding the property through a Canadian corporation, a U.S. LLC owned by a Canadian holding company, or other structures — but these must be set up before closing, not after.

### Can Canadians get a mortgage to buy property in Florida?

Canadians cannot use standard U.S. conventional mortgages, which require a Social Security number and U.S. credit history. The realistic options are foreign national mortgage programs offered by U.S. portfolio lenders (requiring 25–35% down at rates 0.5–1.5% above conventional) or all-cash purchase. Several Canadian banks with U.S. operations — TD Bank, BMO Harris, CIBC US — offer mortgage products for Canadian buyers. Many Canadians purchasing in the $600K–$1.5M range simply buy in cash to stay competitive and avoid the documentation complexity.

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Source: "Buying Property in Florida as a Canadian: The Complete 2026 Guide" by Ryan Solberg, Florida real estate broker (BK3354351), MaxLife Realty, https://maxliferealty.com/blog/canadians-buying-florida (last updated 2026-09-28). Content may be quoted with attribution to MaxLife Realty.