Financial benefits
Florida property gives Israeli investors dollar-denominated rent and a hard asset in a large, liquid market, outside Israel’s concentrated housing market. South Florida has an established Israeli and Russian-speaking community, and Irina works with clients in English, Russian and Ukrainian.
Political and practical benefits
Clear title, public records and regulated escrow make remote ownership straightforward. Direct flights connect Tel Aviv and Miami.
Tax considerations
- FIRPTA: when a foreign person sells U.S. real estate, the buyer generally withholds 15% of the gross sale price for the IRS. The withholding is a prepayment, and the actual tax is settled on the seller’s U.S. return.
- Rental income: by default, 30% of gross rent is withheld. Most investors elect to be taxed on net income instead, which lets them deduct expenses and depreciation and file a U.S. nonresident return each year (an ITIN is needed).
- Estate tax: nonresidents who aren’t U.S. citizens get only a $60,000 U.S. estate tax exemption on U.S. assets unless a treaty improves it. Ownership structure matters.
- Florida: no state personal income tax. Property taxes and insurance are the main carrying costs, and both should be budgeted before you buy.
- Income tax treaty: U.S. tax on Florida rent can generally be credited against Israeli tax on the same income.
- Israeli options: Israeli residents may be able to choose a flat-rate track for foreign rental income instead of regular rates with deductions. Compare both with your Israeli accountant.
- Estate tax: Israel has no inheritance tax, but the U.S. does. Without an estate tax treaty, directly owned U.S. property is exposed above $60,000, so structure matters.
Residency pathways
Owning property doesn’t give residency. Israeli nationals have been eligible for the E-2 treaty investor visa since 2019, which requires investing in and running an active U.S. business.
Next steps
Irina helps international investors choose the right Florida market and property, coordinates with your tax advisor and lawyer, and manages the purchase remotely if you can’t travel. Read the buying guide for foreign nationals, see financing options for non-residents, or run the rental numbers.
Not legal or tax advice. This article is general information, not legal, tax or immigration advice. Tax rules, treaties and exchange rates change. Before you buy, talk to a cross-border tax advisor and a lawyer licensed in the relevant countries. Irina Manets is a licensed real estate sales associate with CENTURY 21 Stein Posner and does not provide tax or legal advice.