Miami property taxes and closing costs: a foreign buyer’s guide
Buying and investing in Miami from Latin America · Part 1 of 5
Understanding Miami property taxes starts with three budgets: acquisition costs, annual ownership costs and the taxes that can arise when you rent, sell or transfer the property. For buyers from Mexico, Colombia or elsewhere in Latin America, the advertised purchase price does not capture all three.
This guide focuses on an individual buying an investment or second home who is not a U.S. tax resident. U.S. citizenship, a green card, physical presence or ownership through an entity can change the analysis. Tax residence and the ownership structure matter, alongside nationality.
Miami property taxes and closing costs: what to budget
Stage | Main items to review |
Purchase | Deed documentary stamps, recording, title insurance and closing services; financing taxes if applicable |
Annual ownership | Property tax, condominium dues, insurance and maintenance |
Rental | Federal income tax and potentially lodging taxes |
Sale or transfer | Tax on gain, possible FIRPTA withholding and estate planning |
Florida has no individual state income tax. Federal income tax, local property tax and entity-level obligations can still apply. An absence of state individual income tax does not make real estate tax-free.
Miami-Dade deed documentary stamp tax
Miami-Dade charges 0.60 USD per 100 USD of consideration, or fraction thereof, on a taxable deed. At 1,000,000 USD of consideration, the base documentary stamp tax is 6,000 USD.
A further 0.45 USD per 100 USD surtax applies to transactions that fall within its scope. A transfer of a single qualifying family residence may be exempt from that surtax; that definition can include an individual residential condominium unit. Do not automatically add 0.45% to every condo purchase or assume it never applies. Have the closing professional determine the treatment of the actual deed.
The contract allocates costs between buyer and seller, but contractual allocation does not replace statutory tax liability. Preconstruction agreements deserve particular attention to charges allocated to the buyer. Sources: Florida Department of Revenue, documentary stamp tax and its condominium surtax guidance.
Financing can add two different taxes
A new mortgage subject to the ordinary rules can generate documentary stamps at 0.35 USD per 100 USD or fraction of secured debt, plus nonrecurring intangible tax at 0.002 of the relevant taxable amount. Those taxes generally relate to the debt rather than the entire purchase price.
Educational example | Amount |
Purchase price | 1,000,000 USD |
New mortgage | 600,000 USD |
Base deed documentary stamps | 6,000 USD |
Mortgage documentary stamps at 0.35% | 2,100 USD |
Mortgage intangible tax at 0.20% | 1,200 USD |
This is not a closing quote. It excludes any applicable surtax, title policies, service fees, recording, prorations, reserves and other charges. Special transactions and refinancings can differ. See Miami-Dade recording requirements and Florida’s nonrecurring intangible tax.
Closing costs that are not taxes
Title insurance covers certain title defects and claims, subject to the policy and exclusions. A lender’s policy protects the lender; it does not automatically replace an owner’s policy. Settlement services, legal review, searches, appraisal, lender charges and initial condominium contributions may also be payable.
Property-tax prorations and money placed in an escrow reserve are not necessarily new taxes or service fees. Ask for a line-by-line estimate separating taxes, professional charges, prepaid expenses and deposits. The Florida Department of Financial Services explains the different title policies.
Do not inherit the seller’s property-tax assumption
Annual property tax depends on assessed value, local rates and property-specific charges. A single percentage cannot accurately price every Miami condo.
A sale can remove the prior owner’s assessment limitations or exemptions. A new development’s bill based on land or incomplete construction may also understate taxes after completion. Use the official Miami-Dade tax estimator, and request a post-purchase estimate.
Do not automatically apply a homestead exemption to a vacation home or investment property. Eligibility involves permanent-residence and other requirements determined by the Property Appraiser.
Renting, selling and passing the property to heirs
Certain U.S. rental income earned by a nonresident and not treated as effectively connected income can be subject to a general 30% tax on gross income, subject to applicable rules. A valid election may allow taxation of net income after allowable deductions at graduated rates. Giving a payer Form W-8ECI is not, by itself, a substitute for making the election and filing the relevant return.
FIRPTA on a later sale is a withholding mechanism. It is generally based on the amount realized, not simply the taxable gain, and exceptions or reductions depend on the transaction. Estate-tax rules are separate again: a nonresident noncitizen should not assume access to the broad estate-tax exclusion available to U.S. citizens. Sources: IRS nonresident real-property income, FIRPTA and nonresident estate tax.
Keep Mexico or Colombia in the picture
Mexican tax residents generally account for worldwide income under Mexican income-tax rules. Colombian tax residents must also consider foreign income and assets. Foreign income-tax credits may be available subject to conditions and limits. U.S. tax payments do not automatically remove home-country filing requirements.
Colombian taxpayers should also check whether a foreign-assets return is required. A U.S. LLC can be classified differently across jurisdictions, creating timing and credit issues. Coordinate advisers before selecting the owner named on the deed. Sources: Mexico’s Income Tax Law, Articles 1 and 5, Colombia’s Tax Statute and DIAN’s foreign-assets guidance.
Frequently asked questions
Is there an extra purchase tax just because I am Mexican or Colombian?
There is no general purchase surcharge triggered solely by either nationality. Review the transaction, financing, tax residence and ownership structure rather than assuming all foreign buyers have the same tax outcome.
Can I use one closing-cost percentage?
A preliminary allowance can help you start budgeting. It cannot replace an itemized estimate for the specific unit and contract, especially in preconstruction.
What should I request before committing?
Request an estimated settlement statement, post-purchase property-tax projection, condominium budget, insurance estimates and a tax plan covering rent, sale and succession. That gives you a more useful comparison than the entry price alone.
Compare developments with a complete ownership budget
TemploAgency helps you compare Miami developments by location, permitted use, purchase terms and commercial documentation. Tax, legal and lending assessments belong with the relevant qualified professionals. Share your budget and intended use so we can prepare a relevant shortlist.
Want a shortlist tailored to your plans? Contact TemploAgency. Read more in our Miami guides.
Sources checked on October 15, 2026. General information to help prepare a purchase; rules and terms can change. Confirm your transaction’s treatment with qualified advisers in the United States and your residence country.