Florida Real Estate Law for Brazilians

Frequently Asked Questions — Real Estate

What is FIRPTA and how much is withheld when a Brazilian sells US property?

FIRPTA (Foreign Investment in Real Property Tax Act) withholds 15% of the gross sale price when the seller is a non-resident foreigner. For residential sales between $300K and $1M where the buyer will occupy the property, the rate drops to 10%. Above $1M, always 15%. The withholding is a prepayment of tax — actual gain may be lower; you can apply for a Withholding Certificate from the IRS to reduce the withholding before closing.

Should a Brazilian buy US property in their own name or via LLC?

Almost always via LLC (most common structure: a Florida holding LLC with a Delaware LLC per property). Reasons: (1) asset protection — a creditor on one property cannot reach the others, (2) §871(d) election — converts rental income to net taxation instead of 30% on gross, (3) estate tax — without an LLC, the non-resident exemption is only $60K, with up to 40% federal tax above that.

Can Brazilians finance US property without an SSN?

Yes, via Foreign National Loans (also called ITIN loans). Specialized lenders accept ITINs in place of SSNs. Typical down payment: 30–40% (vs 20% for residents), rates 1–2 points above prime. Documentation requires proof of income and a translated Brazilian tax letter.

How much does a Florida residential closing cost?

For the buyer: approximately 2–3% of the purchase price (title insurance, prorated taxes, recording fees, attorney). For the seller: 6–8% (broker commission 5–6%, doc stamps on deed, settlement fees). In Florida, doc stamps are $0.70 per $100 of price — paid by the seller by default.

How do I report a US property purchase to Brazil's BACEN?

Brazilians with foreign assets above $1,000,000 (as of Dec 31) file CBE (Capital Brasileiro no Exterior) annually with the Central Bank of Brazil. Above $100M, quarterly. Penalties for non-filing start at R$ 25,000. We do not file CBE directly — we coordinate with the client's Brazilian accountant to align the LLC structure to the report.

Do you represent buyer, seller, or title company?

We represent buyer OR seller exclusively — not the title company. The title company is a neutral party (issues title insurance, records the deed); your own attorney makes sure your side of the deal is protected. In Florida, attorney use is OPTIONAL for residential closings but required for most commercial. Recommended in every case for foreign buyers.