Home Buying in Hancock>Question Details

Crims, Other/Just Looking in Detroit, MI

I have been told to watch out for property tax issues as I am a non resident (canadian) and there may be a

Asked by Crims, Detroit, MI Tue Apr 21, 2009

large non resident tax to pay, is this true?

Help the community by answering this question:


I have a brochure that explains things non US citizens need to know when purchasing property in the US. If you would like a copy please feel free to contact me.

Terry McCarley, Realtor®, CDPE / Jones & Co Realty
email: leecountyrealtor@earthlink.net
phone: 239-707-4575
0 votes Thank Flag Link Tue Sep 11, 2012
NO, it is not true. Tax value has nothing to do with resident status except in the sense that an owner can qualify for the Homestead Exemption if they live in the property at least 6 months of the year. This is true for citizens and non-citizens. In addition, when you sell the property, the government requires all non residents to have withheld 10% of any capital gain until the capital gains tax amount is determined and paid. The balance of the funds left after tax payment from the full 10% held back is then given to the non resident. This is called The Foreign Investment in Property Tax Act (FIRPTA) and can take from 30 days to a couple of months. Lastly, the 10% of the capital gain that is held back can be avoided if the new buyer of the property is going to be a resident and signs a FIRPTA waiver. They also can be or not, a citizen.
0 votes Thank Flag Link Fri Sep 7, 2012
You could set up a corporate entity and get better tax advantages. I am a Canadian citizen who has lived in Florida for 12 years now. My expertise lies with fourigne national investors. I would be happy to speak with you personaly to see what would be the best approch for you. I look forwat to speaking with you and helping you through your cross boarder shopping experiance.
0 votes Thank Flag Link Sun Aug 5, 2012
The good news is that you will pay the same property taxes that we U.S. citizens do.

The best thing you can do is to have a mortgage specialist on speed dial that you can call 7 days a week to ask these questions. There are so many layers of facts one must know about buying a home in Florida, and I know them all. With 12 years of experience lending to Canadian Citizens, and even more years buying and selling real estate myself, I can absolutely answer any question you may ever have, and would be happy to outline what your potential payments would look like as you make offers or browse listings. Please save my number, and lets get to work. :0)

If you would like additional information, it would be my pleasure in helping you understand exactly what you need to do to be mortgage ready, and I offer free unlimited consultation.

Robert Guth
Federally licensed Mortgage Broker
12 years of experience in Cape Coral
Voted #1 for service by a Lender
Seasoned Real Estate Investor
"The hardest Working Man in Home Financing"

0 votes Thank Flag Link Mon Jul 16, 2012
Property taxes are based on the current assessed value of of the property that you purchase. Each August the County appraisor assesses the value of homes in an area based on the market sales in the area of the property in the previous year. The property is taxed accordingly. In Florida we have the Save Our Homes maximum 3% increase on your property's value if the properprty is homesteaded, meaning that we claim it as a primary residence.
If your property is not homesteaded and the values go up significantly, so would the tax without homestead. But the taxes aren't really that bad here. Owning more than one property, does have expenses, but Florida is still a great investment!
Web Reference: http://www.susanburhoe.com
0 votes Thank Flag Link Sun May 24, 2009
If you mean homeowners taxes, they are the based on the property you buy. It is the same no matter who buys the property. Residents who use the property as their primary residence may claim homestead exemption of $50,000.00.

Hope this answers your question.

Good luck

0 votes Thank Flag Link Tue Apr 21, 2009
Dear Crims,

As a non-US resident you will pay your taxes based on the assessed value multiplied by the millage rate. If you were a Florida resident you would get a $50,000 reduction (homestead exemption) from the assessed value and that number would be multilied by the millage rate. Florida gives it's residents a break. In addtion to the homestead expemtion mentioned above, Florida's residents also have a cap on the amount of yearly inrease in taxes due to increasing assessed values. As a non-US resident your assessed value would increase or decrease based on assessed value. In a market where values are increasing substantially you would be at a disadvantatge. In the current decreasing market you will see taxes declinging. I would expect to see another year of decreasing taxes when the bills come out in November. You can search the tax rolls for any particular property at http://www.LeePA.org. If you woluld like to search for homes you can see thousands at http://www.skoffman.capecoralhomesnow.com. The topic may seem a bit confusing but I would be happy to answer any questions you may have so feel free to call or email. Have a great day!

Steve Koffman
Century 21 Sunbelt
#1 team in Florida & #3 team in US for 2008
0 votes Thank Flag Link Tue Apr 21, 2009
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