· Updated · By Ryan Solberg, Broker #BK3354351
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...
Buyer Profile
Canadian buying Florida real estate
#1 source country for Florida foreign buyers
Annual purchases
~5,400 homes/yr
Typical price range
$300K–$700K
Min. down payment
20–25%
Home currency
CAD
Source region
Ontario, BC, Quebec
Primary use
STR investor / lifestyle second home
What This Money Buys
At home versus in Orlando
Toronto, ON
CAD 550K
A 1-bed Midtown condo — 550 sq ft, condo fees $600+/month, no private pool, leasehold parking sold separately.
Kissimmee, FL
$400K
3-bed pool home — 1,600 sq ft, private pool, no condo fee, freehold title, STR-ready.
Property comparisons are illustrative. Market prices change — confirm current listings with a local agent.
What You'll Actually Pay Each Year
True carrying cost of a $700K Florida home
On a $700K Orange County home — non-residents don't qualify for the homestead exemption
Flood insurance is separate and mandatory in many zones; rates have risen sharply since 2022
8–12% of monthly rent, or ~$150–$250/mo for oversight of a part-time or vacant property
Exchange Rate Reality Check
At 0.73 CAD/USD, a home with $15,000/yr in U.S. carrying costs runs the equivalent of $20,500+ CAD — before mortgage. Run the numbers in both currencies before you fall in love with a listing.
The Rule That Surprises Everyone at Closing
How FIRPTA works when you sell
01
Offer accepted
Agreed sale price: $700,000 USD
02
15% withheld at closing
$105,000 sent directly to the IRS by the title company
03
You receive net proceeds
$595,000 (before commissions and closing costs)
04
File Form 1040-NR
IRS refund issued after 6–12 months
Critical detail
That 15% is calculated on the gross sale price — not your profit. On a $700,000 sale, the IRS holds $105,000 regardless of what you paid for the home. You can recover it, but only after filing a U.S. non-resident return — a process that typically takes 6–12 months. Use a cross-border CPA, not a Canadian-only accountant.
Before You Make an Offer
What your Florida home really costs in Canadian dollars
| USD Price | 0.68CAD near multi-year low | 0.73Typical 2024–25 rangeCurrent | 0.80Historical CAD strength |
|---|---|---|---|
| $600,000USD | $882,353CAD | $821,918CAD | $750,000CAD |
| $700,000USD | $1,029,412CAD | $958,904CAD | $875,000CAD |
| $900,000USD | $1,323,529CAD | $1,232,877CAD | $1,125,000CAD |
| $1,200,000USD | $1,764,706CAD | $1,643,836CAD | $1,500,000CAD |
Estimates only. Wire fees, bank spreads, and transfer costs vary — confirm the rate with your bank or FX broker before you close.
Matching Strategy to Location
Snowbird or rental investor?
Seasonal / Snowbird
Lifestyle first
3–4 months occupancy · Long-term hold · Low management friction
- ◆Dr. Phillips & Windermere — lifestyle-first corridors
- â—†Gated communities with on-site HOA management
- â—†Low-maintenance exteriors; grounds maintained by association
- â—†Examples: Phillips Grove, Turtle Creek, Keene's Pointe
- â—†Close to dining, golf, and Orlando International Airport
Rental Investment
Yield driven
Year-round tenancy · Cash flow focus · Professional PM required
- â—†Lake Nona (32827) & SW Orange County (32836)
- â—†Tight vacancy driven by hospital & airport employment
- â—†Year-round renter demand; lower seasonal risk
- â—†Medical City and USTA campus anchor workforce housing
- ◆Read the CC&Rs — some communities prohibit rentals entirely
Who You Need in Your Corner
Your cross-border buying team
01
Florida Real Estate Attorney
Title review, deed preparation, and contract interpretation. The title company alone is not sufficient for a cross-border transaction.
Not the same as a Canadian real estate lawyer
02
Cross-Border CPA
FIRPTA planning, Form 1040-NR filing, Canada–U.S. Tax Treaty optimization, and ITIN application if needed.
Must know both Canadian and U.S. tax law
03
Local Realtor
Neighborhood intelligence, offer strategy, and access to inventory in the corridors that fit your use case.
MaxLife Realty works with Canadian buyers regularly
04
Cross-Border Mortgage Specialist
RBC Bank (U.S.) or CIBC U.S. division handle foreign-national loans. Expect 25–30% down and documentation requirements beyond a standard file.
Optional for all-cash buyers
05
Licensed Property Manager
Hurricane prep, AC monitoring, vendor coordination, and emergency response. For absentee owners, this is risk management — not optional.
8–12% of rent; ~$150–$250/mo for seasonal oversight
Free Download
Canadian Buyer Checklist — 
Florida Real Estate
35+ step checklist covering ITIN, financing, due diligence, closing, post-closing obligations, and canadian-specific tax and transfer rules. Print it or save it to your phone.
Official IRS Documents
Key IRS forms for foreign property owners
Downloaded directly from IRS.gov. Forms are revised periodically — check the revision date on page one before filing and confirm you have the current version with your CPA.
Certificate of Foreign Status of Beneficial Owner
Filed by: Foreign buyer
When you need it: At closing and when opening a US bank account or brokerage
Certifies to US payers (lenders, title companies, banks) that you are a non-US person. Required by your US financial institutions to apply the correct withholding rate on any passive US-source income — interest, dividends, rental income. Without it, payers must withhold at the maximum 30% backup rate. File with each institution that holds or pays US funds on your behalf.
Application for IRS Individual Taxpayer Identification Number (ITIN)
Filed by: Foreign buyer without a US SSN
When you need it: Before your first US tax filing; required before closing in some transactions
If you don't have a US Social Security Number, you need an ITIN to file US tax returns (including recovering FIRPTA withholding) and to appear on a deed in some counties. The application requires certified copies of identity documents — your passport is the primary option. Processing takes 7–11 weeks when filed by mail; an IRS Certifying Acceptance Agent can expedite it. Apply early — don't wait until the year you sell.
U.S. Withholding Tax Return for Dispositions by Foreign Persons
Filed by: Buyer's closing agent (on your behalf)
When you need it: Filed by the title company within 20 days of closing when you sell
This is the FIRPTA withholding return. When you sell your Florida property, the buyer's title company is legally required to withhold 15% of the gross sale price and remit it to the IRS using this form. You do not file it — the withholding agent does. But you should request a copy at closing: it documents the exact amount withheld, which you'll need to reconcile when you file your 1040-NR and claim a refund of any excess withholding.
Statement of Withholding on Dispositions by Foreign Persons
Filed by: Provided to the foreign seller by the withholding agent
When you need it: Issued at closing alongside Form 8288
Your copy of the FIRPTA withholding record — stamped and returned to you by the IRS after processing Form 8288. Think of it as your receipt for the withheld funds. Attach the stamped copy to your Form 1040-NR when you claim a refund of excess withholding. Keep this document in a safe place; without it, reconciling your refund with the IRS is significantly more complicated.
Application for Withholding Certificate for Dispositions by Foreign Persons
Filed by: Foreign seller (or their CPA)
When you need it: File with the IRS BEFORE closing — ideally 90+ days in advance
If your actual US capital gains tax on the sale will be less than the standard 15% FIRPTA withholding, you can apply for a Withholding Certificate to reduce the withheld amount before closing. Example: you paid $500,000 for a property and are selling for $520,000 — your actual gain is $20,000, but 15% of the $520,000 sale price is $78,000. File Form 8288-B with supporting documentation and the IRS may authorize the title company to withhold only the amount covering your actual liability. The IRS has 90 days to respond; if no response before closing, the full 15% must be withheld regardless.
U.S. Nonresident Alien Income Tax Return
Filed by: Foreign owner of US rental property; foreign seller recovering FIRPTA withholding
When you need it: Filed annually by June 15 (or April 15 if US wages exist); filed after a sale to recover FIRPTA overage
The primary US tax return for non-resident alien property owners. Two situations trigger this form: (1) You earn rental income from your Florida property — report it here annually on Schedule E, deduct allowable expenses, and pay tax on net income. (2) You sold your property and had 15% FIRPTA withheld at closing — file this return to report your actual gain, calculate the correct tax, and claim a refund of any amount withheld in excess of your liability. Refunds on FIRPTA recoveries typically take 6–12 months from filing. Work with a CPA who handles non-resident US returns — this is not a standard US tax return and general tax software does not handle it well.
United States Estate Tax Return — Estate of Nonresident Not a Citizen
Filed by: Estate of the deceased foreign property owner
When you need it: Filed within 9 months of date of death if US-situs assets exceed $60,000
If a non-US citizen who owns Florida real estate dies, their estate must file this return if the fair market value of their US-situs assets (real estate, US stocks, tangible property in the US) exceeds $60,000. The non-resident alien estate tax exemption is only $60,000 — compared to $13.6 million for US persons in 2026. On a $700,000 Florida property, approximately $640,000 is potentially subject to US federal estate tax at rates up to 40%. This is why ownership structure (personal vs. LLC vs. foreign corporation) must be decided before purchase, not after. Proper planning can eliminate or dramatically reduce this exposure.
These forms are provided for informational purposes only. Tax law changes frequently. Always confirm the current version and applicability with a qualified cross-border CPA before filing.
Go Deeper
IRS publications for foreign property owners
These reference guides explain the rules behind the forms — worth reading before you hire a CPA so you can ask the right questions.
Residential Rental Property
Reference — not filed; used for tax preparation
When to use it: Before your first rental season and at tax time each year
The IRS's complete guide to tax rules for residential rental property. Covers what rental income to report, which expenses are deductible (mortgage interest, repairs, insurance, depreciation, management fees), how to calculate depreciation on a US rental property, and passive activity loss rules. Foreign owners who rent their Florida property on a short-term or long-term basis should read this before hiring a CPA — understanding the basics makes the 1040-NR Schedule E process far less opaque.
U.S. Tax Guide for Aliens
Reference — not filed; used to determine residency status and filing obligations
When to use it: Before your first US tax year and whenever your visa or residency status changes
The authoritative IRS reference for non-US persons with any US tax obligation. Explains the difference between resident aliens (taxed like US citizens) and nonresident aliens (taxed only on US-source income), how to apply the Substantial Presence Test, how to determine your filing status, and which tax treaties may reduce your US liability. Particularly valuable for Indian nationals on H-1B or green cards who need to understand whether they file Form 1040 or Form 1040-NR in a given tax year.
Withholding of Tax on Nonresident Aliens and Foreign Entities
Reference for withholding agents; relevant to foreign buyers receiving US-source income
When to use it: When setting up US rental income payments or reviewing withholding on passive income
Explains the rules US payers (banks, title companies, rental agents) must follow when paying income to foreign persons. As a foreign property owner, this publication helps you understand why your US bank or property manager withholds at certain rates, which treaty exemptions can reduce that withholding, and what documentation (typically Form W-8BEN) you need to provide to claim a lower rate. Also covers the NRA withholding rules that apply to rental income paid to non-US owners.
Information Return of U.S. Persons With Respect To Foreign Disregarded Entities and Foreign Branches
US persons who own a foreign LLC or disregarded entity that holds US real estate
When to use it: Filed annually with your US tax return if a foreign entity owns your Florida property
If you hold your Florida investment property through a foreign LLC, foreign partnership, or similar entity that is treated as a disregarded entity for US tax purposes, the US member or owner may be required to file this information return annually. This is a reporting form — not a tax payment form — but failure to file carries significant penalties ($10,000+). Relevant primarily to buyers who have set up foreign holding structures to own US real estate. Ask your cross-border CPA whether your ownership structure triggers this filing.
Required Filings & Licenses
State and federal obligations beyond the IRS
Florida Vacation Rental License Application
Florida DBPR (Dept. of Business & Professional Regulation)
Florida law requires a state vacation rental license for any property rented for periods of less than 30 days more than three times per year. This is separate from any county or city STR permit — you need both. The application requires proof of ownership, a property inspection, and an annual renewal fee. Operating without this license exposes you to fines and potential rental income clawback. Apply before your first rental booking.
FinCEN FBAR — Report of Foreign Bank and Financial Accounts (FinCEN 114)
US Financial Crimes Enforcement Network (FinCEN)
If you are a US person (green card holder, H-1B meeting the Substantial Presence Test, or US citizen) and the combined value of your foreign financial accounts exceeds $10,000 at any point during the calendar year, you must file an FBAR annually by April 15 (automatic extension to October 15). This includes foreign bank accounts, brokerage accounts, and certain foreign trusts. Penalties for non-filing are severe — up to $10,000 per violation for non-willful, much higher for willful. NRIs who become US tax residents are commonly surprised by this requirement.
External links open official government websites. MaxLife Realty is not responsible for changes to third-party sites. Always verify requirements with a licensed CPA, attorney, or the relevant agency before filing.
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 and Windermere for the lifestyle and luxury, Lake Nona for the newer construction and medical community employment ties, and gated communities along the I-4 corridor for the snowbird 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 — 20 minutes with an Orlando broker saves weeks of cross-border guesswork. Or browse current listings to get a feel for the market first.
Yes, Canadians Can Buy — and Florida's Foreign-Ownership Law Doesn't Apply to You
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 a regular snowbird, 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 snowbird home used 3–4 months per year has different needs than a rental investment. For the snowbird model, gated communities with on-site HOA management work well — communities like Phillips Grove and Turtle Creek in 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.
Planning a move to Orlando? The Complete Orlando Relocation Guide 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
What Canadians need to know before buying in Orlando — carrying costs, financing as a foreign national, FIRPTA withholding, U.S. estate tax exposure, ownership structure, and the best neighborhoods for Canadian buyers.
Step 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.
Step 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.
Step 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.
Step 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.
Step 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, FinCEN beneficial ownership reporting, 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.
Step 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.
Step 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.
The next step
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Whether you're two months out or two years out, the right information now saves real money later. Let's talk — no pressure, no pitch.