Real Estate Law
Foreign-Buyer US Real Estate 2026 — FIRPTA Guide
Brazil is one of the top international real-estate markets in Florida: 7% of all foreign purchases in 2025, $10.4B total volume. Buying as a foreigner involves rules that differ radically from Brazil — especially FIRPTA, LLC, ITIN, and estate planning.
FIRPTA — what every foreign buyer needs to know
FIRPTA (Foreign Investment in Real Property Tax Act) is the US federal law requiring tax withholding on real-estate sale by a foreign seller. It affects future sale of your property, not purchase — but wrong structure now creates the problem later.
2026 FIRPTA withholding table
| Buyer use | Sale price | Withholding |
|---|---|---|
| Buyer as residence | Up to $300,000 | 0% |
| Buyer as residence | $300K – $1M | 10% |
| Buyer as residence | Above $1M | 15% |
| Investment (any price) | Any | 15% |
| Foreign corporation seller | Any | 21% |
Withholding is on gross price, not profit. Bought $500K, now worth $850K, selling as investment → $127,500 withheld (even if actual gain is less). Refund via tax return, 6–12 months. Use our free FIRPTA Calculator to see the exact impact.
Structuring to minimize FIRPTA
The most effective solution is to buy via single-member US LLC (treated as a disregarded entity for federal purposes). The US LLC is not "foreign" for FIRPTA when structured correctly — dramatically reducing or eliminating withholding. We structure LLC + real-estate purchase together, ensuring the entity is correct from closing.
Ownership structures for Brazilians
| Structure | Best for |
|---|---|
| Direct purchase (individual) | Low-value primary residence using homestead exemption |
| Single-member Florida LLC (recommended) | Investment property, short-term rental, asset protection |
| Multi-member LLC | Family property, shared investment, estate planning |
| Revocable Living Trust | High-value primary residence, Brazil-US estate planning |
Financing — resident vs non-resident
| Item | Resident (GC/EAD) | Non-resident |
|---|---|---|
| Minimum down payment | 10–20% | 30–40% |
| Income documentation | US pay stubs | Brazilian tax return + statements |
| ITIN or SSN | SSN preferred | ITIN required |
| Interest rate | Standard rate | +0.5–1.0% over standard |
| Available banks | Wide choice | Specialized international |
ITIN (Individual Taxpayer Identification Number) is the US tax number for those without SSN. We open it before closing (Form W-7).
Purchase process — step by step
- 1Legal structuring — decide individual vs LLC vs Trust; open the entity before offer
- 2ITIN / EIN — federal tax number for you and/or the LLC
- 3US bank account — needed for closing
- 4Offer and contract — review purchase agreement, contingencies, deadlines
- 5Due diligence — inspection (10 days), title search, title insurance
- 6Closing — remote signature via apostille or Power of Attorney for in-Brazil signing
- 7Recording — deed recorded with the county; LLC holder appears in public record
- 8Post-closing — FBAR and FATCA if needed, insurance, BACEN CBE filing if >$1M
BACEN reporting (Brazilian obligation)
Brazilian residents with foreign assets over $1 million must file annually with the Central Bank via CBE (Brazilian Capital Abroad). Non-filing subjects to fines up to R$ 250,000. We work with Brazilian accountants to ensure full Brazil-US compliance.
Frequently asked questions
Can I buy US real estate without living there?
Yes, without restriction. Non-resident foreigners can buy any type of US real estate without legal limitation.
Do I need to be present at closing?
No. Closing can be done remotely with documents sent via apostille or with a Power of Attorney.
Does the LLC open quickly?
Yes. Florida LLC is opened in 1–3 business days online via sunbiz.org. Operating Agreement, FEIN/EIN, and bank account take another 1–2 weeks.
Does my US property go through Brazilian probate?
Not automatically. US property follows US law — without a US will, it goes through Florida probate. With a Trust or well-structured LLC, it bypasses US probate and can be integrated with your Brazilian succession plan.
Can I rent my property (Airbnb, VRBO)?
Yes. Florida is one of the most favorable states for short-term rental. Via LLC, income is declared as US business income (and you receive W-8BEN as foreigner).
Ready to Take the Next Step?
Schedule a consultation today. We will listen, assess your situation, and give you a clear path forward — in the language you are most comfortable with.