FIRPTA compliance for Miami condo buyers
Guide to FIRPTA withholding for Miami condo deals in Miami-Dade County, with steps for foreign buyers, sellers, brokers, title agents.
A title company in Miami must coordinate FIRPTA withholding with foreign buyers, foreign sellers, brokers, and lenders, turning each deed into a federal tax event under 26 U.S.C. § 1445, plus Florida recording rules under Fla. Stat. § 689.01. IRS
Foreign investors who purchase pre-construction condos in Brickell or Wynwood often plan a future resale in Miami-Dade County or nearby Broward County, which means FIRPTA planning must start at the reservation stage, not only at closing day.
Overview: Navigating FIRPTA Compliance for Foreign Buyers in Miami's New Condo Boom with a Florida closing focus
FIRPTA, the Foreign Investment in Real Property Tax Act, requires a withholding tax on most U.S. real property dispositions by foreign persons, including condo resales in Miami-Dade County. IRS
Under 26 U.S.C. § 1445, the buyer in a Miami condo deal usually serves as withholding agent, which means liability if the deal in Brickell or Edgewater closes without correct FIRPTA escrow. IRS
An experienced escrow closing team in Miami guides buyers through FIRPTA forms, timelines, and wire instructions for IRS Form 8288, with coordination across Miami-Dade County brokers.
For foreign buyers who plan to hold new condos in Downtown Miami or Wynwood as long-term rentals, FIRPTA risk appears later, at exit, which makes early tax planning with a CPA in Florida critical, alongside clear title strategies.
Miami title services from Location Title & Escrow LLC align FIRPTA risk review with contract review for pre-construction assignments, bulk buys, or single luxury condos near Biscayne Bay in Miami-Dade County.
Legal or Compliance Insight
FIRPTA withholding for a typical Miami condo resale in Miami-Dade County equals fifteen percent of the gross amount realized, which usually means contract price plus certain liabilities. IRS
For foreign corporations that hold tower units in Brickell or Edgewater, a separate regime can require twenty-one percent withholding on gains, which raises the stakes for entity planning in Florida before delivery of a deed recorded under Fla. Stat. § 689.01. IRS
IRS rules allow exceptions for certain home purchases under FIRPTA, such as reduced withholding when a buyer in Miami-Dade County will use the condo as a residence within price limits, which requires an occupancy affidavit at the closing table. IRS
Many foreign sellers in Brickell or Downtown Miami seek a withholding certificate on IRS Form 8288-B, which can reduce or remove FIRPTA withholding when actual gain is lower, while a Miami title company holds targeted funds in escrow until the IRS issues a decision. IRS
A specialized FIRPTA foreign national service team in Miami-Dade County coordinates identification numbers, IRS submissions, secure wire releases, which protects buyers from secondary liability under 26 U.S.C. § 1445 plus penalties.
Florida closings also must satisfy documentary stamp tax on deeds under Fla. Stat. § 201.02, which applies to condo deeds in Miami-Dade County or Broward County regardless of the seller’s residency, separate from federal FIRPTA withholding.
Local Impact — Miami within Miami-Dade County
Reports from Miami real estate groups show foreign buyers now account for a high share of new construction condo sales in Miami-Dade County, with strong clusters in Brickell, Edgewater, Downtown Miami, and coastal corridors. Miami Herald+1 MIAMI REALTORS®+1
Luxury condo projects along the Miami River, near Brickell City Centre, bring thousands of new units into the pipeline, which concentrates FIRPTA exposure in a compact stretch of Miami-Dade County riverfront. New York Post
In Edgewater, market summaries highlight a transition phase with higher inventory plus price pressure in certain tiers, which creates negotiation leverage for foreign buyers who understand FIRPTA cost within total closing economics. LuxLife Miami Blog+1 LuxLife Miami Blog+1
Wynwood and nearby arts districts in Miami showcase branded condo projects with lifestyle amenities, which attracts foreign second-home buyers who treat Miami-Dade County as a safe capital shelter, yet each resale later can trigger FIRPTA withholding. New York Post+1 theglobalgroup.us+1
Market data for Miami-Dade County luxury condos over two million dollars shows sustained demand from global investors, which keeps FIRPTA planning central for brokers who handle trophy listings across Brickell, Downtown, and Miami Beach feeder markets. MIAMI REALTORS®+1 CondoBlackBook+1
Transaction Relevance — Buyers, Sellers, Agents
A foreign seller in Brickell who lists a high-floor condo must disclose foreign status early, which lets the listing broker in Miami-Dade County coordinate FIRPTA language with the title company, consistent with Fla. Stat. § 475.278 duties for licensees.
Buyer agents in Downtown Miami need FIRPTA awareness when preparing offers, since a foreign seller can shift withholding responsibility to the buyer under federal rules, which affects net cost for a Miami-Dade County buyer who already pays documentary stamp tax under Fla. Stat. § 201.02.
For cash buyers from Latin America who target Edgewater or Wynwood pre-construction towers, a Miami closing agent will map the path from reservation, to assignment, to final deed, which keeps FIRPTA risk tracked across each transfer of a U.S. real property interest.
A Florida closing how-to guide helps foreign buyers who view Miami-Dade County as a long-term base, since clear checklists for escrow deposits, inspection timelines, FIRPTA affidavits, and recording, help align expectations with Florida law.
Where a foreign seller lives abroad during the sale of a Miami condo, remote online notarization permits secure digital signing in compliance with Florida RON rules, while the title company in Miami-Dade County holds FIRPTA proceeds in a trust account.
Many foreign buyers then refinance Miami or Brickell condos later, which makes a second closing in Florida, with new payoff statements, updated title searches, and revised FIRPTA status, which can be supported through our refinance and FSBO support.
County and City Spotlights
Miami-Dade County
Miami-Dade County serves as the core FIRPTA market in South Florida, since foreign capital flows into Brickell, Edgewater, Wynwood, Miami Beach, Doral, and Coral Gables feeder zones. Miami Herald+1 MIAMI REALTORS®+1
A Miami-Dade County title services team must track municipal lien searches, condo association estoppels, and special assessments on towers from Downtown Miami to Aventura, while overlaying FIRPTA withholding for foreign sellers.
Recording for deeds in Miami-Dade County follows the county clerk process referenced in Fla. Stat. § 695.01, which fixes priority for a foreign investor’s condo interest once the instrument reaches official records in Miami.
Pre-construction projects across Brickell, Miami River, and coastal Edgewater often rely on bulk foreign contracts, which means future resale cycles in Miami-Dade County will bring waves of FIRPTA closings for years. New York Post+1 LuxLife Miami Blog+1
Brickell, Edgewater, Downtown Miami
Brickell high-rise towers now include branded residences plus ultra-luxury penthouses, which draw foreign wealth from Latin America into Miami-Dade County, often through corporate vehicles or trusts. LuxLife Miami Blog+1 LuxLife Miami Blog+1
Edgewater, along Biscayne Bay in Miami, faces heavier inventory in several price tiers, which boosts buyer leverage, yet foreign sellers still must plan FIRPTA withholding regardless of market direction in Miami-Dade County. LuxLife Miami Blog+1 LuxLife Miami Blog+1
Downtown Miami condo towers near major venues plus the Brightline station attract foreign buyers who want a core-city address in Miami-Dade County, which brings frequent FIRPTA issues when those units convert from second homes to investment sales later. qkapital.com+1 LuxLife Miami Blog+1
Wynwood Corridor
Wynwood, north of Downtown Miami within Miami-Dade County, now shows fashion-branded towers plus boutique condo projects, which appeal to foreign buyers from Europe, Latin America, and Canada who seek culture-focused locations. New York Post+1 theglobalgroup.us+1
Those Wynwood buyers often split time between Miami-Dade County and other global hubs, which means many future resales will involve nonresident sellers, FIRPTA withholding, and wire transfers across borders, with higher fraud risk unless the title company verifies each instruction.
Broward County
In Broward County, foreign buyers who price out of central Miami often shift to towers in Fort Lauderdale, Hollywood, or Miramar, which still fall within South Florida FIRPTA rules for U.S. real property interests. qkapital.com
A Broward County title service provider coordinates with condo associations from Fort Lauderdale Beach to Weston, which keeps FIRPTA escrows aligned with Broward County recording in Fort Lauderdale.
Many foreign investors split portfolios between Miami-Dade County high-rises plus Broward County coastal mid-rises, which multiplies FIRPTA calculations, since each Florida deed triggers a separate review of seller status, gain, exemptions, and withholding rate.
Table: FIRPTA Risk Checklist by Miami Location
| Area in South Florida | Typical Condo Profile | Common Foreign Seller Profile | FIRPTA Focus Item |
|---|---|---|---|
| Brickell, Miami-Dade County | Luxury towers, branded residences | Latin American high-net-worth individuals | Entity structure review before listing, residence-use affidavits |
| Edgewater, Miami-Dade County | Bayfront towers, mixed-age inventory | Foreign investors with medium hold periods | Correct calculation of amount realized, timely Form 8288 filing |
| Downtown Miami, Miami-Dade County | High-rise condos near transit | Global buyers using units for seasonal stays | Buyer occupancy affidavits for reduced withholding where available |
| Wynwood corridor, Miami-Dade County | Boutique lifestyle projects | Creative industry investors, cross-border families | Verification of beneficial ownership, wire fraud controls |
| Fort Lauderdale in Broward County | Beachfront towers, marina access | Foreign second-home owners | Coordination of FIRPTA plus Florida documentary stamp tax at deed |
FAQ: Navigating FIRPTA Compliance for Foreign Buyers in Miami's New Condo Boom for Florida Closings
Q: What does FIRPTA mean for a Miami condo buyer in Miami-Dade County?
A: FIRPTA treats a Miami condo purchase from a foreign seller as a withholding event, which means the buyer in Miami-Dade County must hold back a portion of price, then remit funds with IRS Form 8288, unless a valid exemption or certificate applies. IRS
Q: How can a foreign seller reduce FIRPTA withholding on a Brickell condo resale?
A: A foreign seller in Brickell can request a withholding certificate through Form 8288-B, which may reduce FIRPTA withholding where actual gain in Miami-Dade County is lower, while a title company holds a tailored escrow in trust until an IRS decision arrives. IRS
Q: Does FIRPTA apply to pre-construction condo assignments in Downtown Miami?
A: Many pre-construction assignments in Downtown Miami involve a transfer of a U.S. real property interest within Miami-Dade County, which can trigger FIRPTA, so buyers plus sellers must disclose status, coordinate with the closing agent, and align documents before the assignment closing.
Q: How does FIRPTA interact with Florida documentary stamp tax for Wynwood or Edgewater condos?
A: FIRPTA withholding under 26 U.S.C. § 1445 focuses on federal income tax for foreign sellers, while Florida documentary stamp tax under Fla. Stat. § 201.02 applies to deeds for Wynwood or Edgewater properties in Miami-Dade County regardless of seller residency, which means both items must be budgeted.
Q: Why should a foreign buyer in Broward County or Miami-Dade County work with a Miami title company?
A: A Miami title company with FIRPTA experience in Miami-Dade County plus Broward County coordinates tax affidavits, wire controls, recording in both counties, which protects the buyer from IRS exposure, delayed clear title, and wiring fraud.
Contact — Location Title & Escrow LLC
Foreign buyers, foreign sellers, and brokers in Miami-Dade County or Broward County who face FIRPTA questions for Brickell or Edgewater condo deals can engage Location Title & Escrow LLC for structured guidance from contract through recording.
The title insurance service team at Location Title & Escrow LLC supports risk review for Miami or Broward condo towers, which covers lien searches, association estoppels, survey review, and FIRPTA overlay.
Florida investors who want deeper education on cost items for a Miami closing can review the firm’s guide on title company fees in Florida, which helps with total cost projections in Miami-Dade County or Broward County.
For investors who plan multiple Miami or South Florida deals over time, Location Title & Escrow LLC offers specialized closing services plus document preparation and recording support across Miami-Dade County or Broward County portfolios.
Learn more about the firm on the About Location Title & Escrow LLC page, then request a custom FIRPTA closing plan through the contact form for a Miami or Broward transaction.
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