First steps
Yes. You only need to have a current passport and a valid American visa. Tourist, Student and Work Visas are accepted for purchasing property.
Analyze your budget to determine how much money you will need to buy a house in Florida, and how long it will take to raise the amount. You don’t need to have the full amount, but what is necessary to cover the down payment, and also know how much you can pay monthly to pay expenses such as mortgage and other fees.
You will also need a bank account to receive monthly rent into it.
- IPTU (1.3% to 2% of the property value)
- Community Development District (CDD): some condominiums charge this fee for maintaining community infrastructure, such as paving, sewage services, public lighting, among others.
- Homeowner’s Association (HOA): is a fee charged by condominiums to maintain the services offered by the condominium, such as gardening, security, maintenance of common areas.
- Insurance, if you hire one.
The documents required are a passport and proof of address in Argentina, such as a bank statement. You will also have to talk to an accountant, who will clarify the differences between individuals and legal entities here, and indicate the best options for each situation.
Yes, in the case of a cash purchase, the extra costs are approximately 3% of the value of the property. In the case of a financed property, approximately 5% of the value, but this will depend on the type of financing and the institution’s fees.
No. You continue to have your stay defined by your visa type. Normally, Foreign people stay for 6 months and Europeans for 3 months. To live in the United States you have to apply for one of the immigration modalities.
In the case of cash purchases, the presence of the buyer will not be required. Documents can be signed at the American Embassy or Consulates and sent by mail. In financed purchases, most banks require the presence of the buyer and their spouse.
Financing
Yes. To finance a house in Orlando or the region, you need to contact a financial institution that offers financing services for foreigners. The documentation required to begin the pre-approval process for financing is:
- Bank statement;
- Income tax declaration;
- Letter proving employment of at least 2 years;
- Bank reference letter;
- Proof of income.
From $100,000 it is possible to obtain financing, so the house must cost at least 30% more than the financing amount, equivalent to the property’s down payment.
- Fixed installments for 30 years. Average interest of 4.5%;
- Fixed installments for 15 years. Average interest of 4.0%;
- Fixed installments for the first 5 years and variable for the next 30 years. Average interest of 5%.
Most banks run the Constant Installment System (PRICE). In this system, the installment is fixed throughout the financing period. As IPTU and property insurance will be included in the payment, these two items may cause small variations in the installment.
Benefits:
- Low interest (between 5-6% pa);
- Ease of credit approval for foreigners;
- Financial leverage.
Disadvantages:
- Extra cost of writing;
- Impossibility of transferring the title of the property to a company you own, to avoid inheritance tax;
- Amount financed must be at least US$100,000.00;
- Bank must evaluate and approve the purchase;
- Requires buyer presence in the USA;
- Termination of the business in the medium term (between 45-60 days);
- Hiring a financing broker to prepare/approve documents (average additional cost of 1-2% of the financed amount).
The documents must be translated into the language where the negotiation is taking place, in this case English. Some banks will have Portuguese-speaking staff available and will be able to assist you with preparing documents. If necessary, you can hire a Mortgage Broker who will advise you during the process. For the service, they usually charge 2% of the financing amount. The benefit is that your approval is almost guaranteed and the process is very quick.
You can use our financing calculator by clicking here .
No. Unlike of other countries, the bank will not force you to take out life insurance to pay the financing. But there’s nothing stopping you from doing it on your own.
Generally not. Banks that finance foreigners ask that the property be in the name of the individual. If your company has a credit history in the United States, it becomes eligible for financing.
If you choose to finance the property, you must have a pre-approval letter issued by the financing bank before an offer is made on the property. This letter represents that some of the buyer’s documents have already been evaluated and pre-approved. So, for financed properties, the faster these documents are sent for evaluation and approval is obtained from the financing bank, the better and easier the property acquisition becomes.
Cash Purchase
Benefits:
- Dollar-backed investment in the perspective of real devaluation;
- Short-term business completion: 15-30 days;
- Great negotiating power in opportunities;
- There are no extra costs (taxes and bank fees) when registering the property;
- Makes it possible to purchase in the name of an investment company, avoiding inheritance tax;
- Purchase can be made from Argentina.
Disadvantages:
- Need for full availability of resources.
When it is cash, the money must be in the United States bank account to help with the negotiation. In many cash transactions, the seller needs proof that the buyer has all the money for payment. The procedure time until closure takes around 15 days.
You need a copy of your passport and visa and a copy of your bank statement or financial application proving the value of the property to be purchased.
Keep in mind what type of property you want to purchase and what purpose it will be used for. Therefore, you must look for a Real Estate broker licensed in the State of Florida and associated with a credible real estate agency.
The alternatives are single family homes, townhouses, duplexes, communal apartments, land, commercial spaces and general stores ready for operation.
You can purchase property in Florida as your official residence or as a vacation home, as an investment in the short-term vacation home market or the long-term rental market. It is possible to invest in a commercial space for your business in Florida or to profit from rent, or in a space to set up a business in the industrial sector. If you want to build something from scratch, you can purchase land and start a real estate project off-plan.
- Determine the purpose of the purchase
- Select the broker who will work for and with you
- Open a bank account
- Define the payment method
- Search for the property
- Make an offer on the property
- Have the offer accepted
- Inspect the property
- Business closing
No. The entire purchase procedure can be done with the buyer in another country without needing to be in the United States. Signing documents electronically, sending money, everything is advised by experts.
Company Opening
Accountants or lawyers charge around US$600.00 to open a Ltd company (LLC).
In theory, yes. However, an EIN Number (CNPJ) will be required for most companies formed. If partners do not have a Social Security Number, they will need a third party (lawyer or accountant) authorized to request registration.
Most Limited Liability Companies (LLCs) have only two annual obligations:
- Submit the Corporate Income Tax Declaration (between January and April and costs on average US$250.00) and
- Renew the Annual Report with the State of Florida (between January and May and costs US$125.00).
Foreign individuals or legal entities, as well as American citizens and companies, can be partners in a company in Florida.
Many foreigners decide to buy homes in Orlando through family businesses. This simplifies the transfer of shares between partners/owners and can avoid/reduce Death Tax taxation.
Yes. Acquiring a property in the name of a legal entity has tax benefits, as well as asset protection. Therefore, we advise opening a company, as in addition to the process being non-bureaucratic, the company’s maintenance is very low and your assets are better protected.