Financial benefits
Florida is familiar ground for British holidaymakers, and many owners rent a home or condo to that same market when they aren’t using it. Rents in dollars diversify income away from sterling, and Florida property prices are often lower per square foot than comparable coastal property in the UK.
Political and practical benefits
English-language contracts, common-law roots and title insurance make the process feel familiar. Visits up to 90 days at a time are possible under the Visa Waiver Program with an approved ESTA.
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 UK tax on the same income.
- Estate and gift tax treaty: the U.S.–UK treaty can significantly reduce U.S. estate tax for UK-domiciled owners compared with the $60,000 default. How it applies depends on domicile and the size of the estate.
- UK changes: the UK replaced the non-dom remittance basis in April 2025 with a new regime for recent arrivals. Long-term UK residents are generally taxed on worldwide income, including U.S. rent.
Residency pathways
Property ownership alone doesn’t give U.S. residency. UK nationals are eligible for the E-2 treaty investor visa when they invest in and run 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.