An Italian resident can buy Florida real estate without becoming a U.S. resident. The question is how to structure the purchase: ownership, FIRPTA withholding on sale, estate tax and the Italian side — Quadro RW and IVIE at 1.06%.
Published: 2026-08-25 · Last verified: 2026-08-25 · 13 min
An Italian resident can generally buy Florida real estate without becoming a U.S. resident. The real question is how to structure the purchase before closing: personal ownership versus a Florida LLC, U.S. tax during ownership and Florida property tax, FIRPTA withholding of 15% on sale, the U.S. estate tax exposure of $60,000 for non-residents, and the Italian side — Quadro RW monitoring and IVIE at 1.06%. Plan both tax systems together, before closing.
Updated 25 August 2026 · Massimo Leonardi, Italian Attorney, Chartered Accountant and Statutory Auditor.
Florida, and Miami in particular, continues to attract Italian investors looking for residential properties, vacation homes and rental investments. An Italian resident can generally purchase U.S. real estate without becoming a U.S. resident.
The more important question is not simply whether you can buy, but how the investment should be structured before closing. An Italian purchaser should weigh the U.S. and the Italian consequences from the very beginning — the two systems never operate independently.
One of the first decisions is whether to acquire the property personally, through a Florida LLC, or through another structure. There is no option that is automatically best for every investor.
The right answer depends on personal use versus investment, rental activity, the number of investors, financing, liability, the expected holding period, the future sale, succession planning and the Italian tax consequences. Creating an LLC simply because it is common in Florida is not, by itself, tax planning — the classification rules are the same that apply to any U.S. entity in our Florida LLC guide.
A foreign investor's U.S. profile depends on how the property is used. A home held purely for personal use is different from a property that produces rental income.
By default, rental income paid to a non-resident is subject to 30% withholding on the gross amount; a Section 871(d) election moves the owner to net-basis taxation, deducting expenses and depreciation on Form 1040-NR. Elections and filing requirements should therefore be analysed before the property starts producing income.
Florida real estate is subject to local property taxation, which varies by location, assessed value and circumstances. An international investor should evaluate not only the purchase price but the total annual cost of ownership: property taxes, condominium or HOA fees, insurance, maintenance, property management and accounting and tax compliance.
This matters most when assessing the expected return on a rental investment. Note that Florida has no state individual income tax, which supports after-tax returns on rental properties.
The most important rule for a foreign owner arises on sale. Under the Foreign Investment in Real Property Tax Act (FIRPTA), the disposition of a U.S. real property interest by a foreign person is generally subject to withholding of 15% of the amount realized — the gross sale price.
The buyer withholds and remits to the IRS on Forms 8288 and 8288-A, generally within 20 days of closing. The amount withheld is not the seller's final tax: it is a collection mechanism, and the actual liability is determined later on the U.S. return.
Yes, in appropriate cases. Where 15% of the price would exceed the expected tax on the gain, the seller can apply for an IRS withholding certificate on Form 8288-B before closing. Per Rev. Proc. 2000-35 the IRS should act within about 90 days, and filing before closing lets the buyer hold the funds in escrow rather than remit immediately.
A separate statutory exception reduces withholding to 0% when the price is $300,000 or less and the individual buyer will use the property as a residence. Timing matters, so the issue should be considered before closing.
FIRPTA at a glance — Rule
Default withholding — 15% of the amount realized (gross sale price)
Who withholds — The buyer, remitting to the IRS (Forms 8288 / 8288-A within 20 days)
Residence exception — 0% if price is $300,000 or less and the individual buyer will reside there
Reduce at closing — Form 8288-B withholding certificate (about 90 days; funds held in escrow)
Final tax — Determined on Form 1040-NR; any excess is refunded
Buying in Florida does not remove an Italian resident from the Italian system. Italian residents must generally report foreign real estate through the Quadro RW (Quadro W in the 730 form), which serves both foreign-asset monitoring and the calculation of IVIE and IVAFE where applicable.
A Florida property must therefore be analysed for Italian reporting and taxation too, not only from the U.S. side.
Italian residents owning real estate abroad are subject to IVIE, the Italian tax on the value of foreign property, at an ordinary rate of 1.06% (raised from 0.76% starting in 2024 and confirmed for 2026).
For a U.S. property, which has no Italian-style land registry value, the taxable base is generally the purchase cost revalued by ISTAT indices. Italian property taxes paid in the U.S. can be credited against IVIE. The economic return should therefore be calculated after taxation in both jurisdictions.
When a Florida property is rented, the investor may face U.S. taxation on the income while remaining subject to Italian tax as a resident.
This does not necessarily mean paying the same tax twice: foreign tax credit mechanisms under Article 165 TUIR and the Italy–U.S. treaty determine how the two systems interact. The key point is that U.S. and Italian compliance should be coordinated from the outset, not addressed separately at year end.
For high-value investments, succession should be considered before acquiring the property. U.S. estate tax rules for non-U.S. persons differ sharply from those for U.S. citizens and residents: a non-resident generally receives a U.S. estate tax exemption of only $60,000 on U.S.-situs assets, against the far larger exemption available to U.S. persons, with rates up to 40%.
A U.S.–Italy estate tax treaty may modify this result. The ownership structure therefore affects not only annual taxation but also the consequences of death and succession — which is why an investor should not automatically buy personally or through an LLC without first reviewing the wider family and patrimonial picture.
Many investors seek advice only after signing or completing the purchase. At that point, changing the ownership structure can be more complex and may itself carry legal or tax consequences.
The preferable sequence is: identify the property and intended use; analyse the investor's Italian tax position; evaluate personal ownership versus an LLC or other structure; review U.S. tax and succession consequences; arrange banking and financing; then complete the acquisition.
The two tax systems — United States — Italy
Ownership — Federal rules; Florida has no state income tax — Quadro RW monitoring; IVIE 1.06%
Rental income — 30% gross withholding, or Section 871(d) net-basis election — IRPEF, with foreign tax credit and treaty relief
Sale — FIRPTA 15% withholding; gain reported on Form 1040-NR — Capital gains rules for residents
Death — U.S. estate tax; $60,000 non-resident exemption — Succession rules; estate tax treaty may apply
IIILEX International Consulting LLC assists Italian individuals and entrepreneurs investing in Florida by coordinating the Italian and U.S. aspects of the transaction. Our assistance may include analysis of the appropriate ownership structure, Florida LLC formation where appropriate, Italy–U.S. tax planning, review of Italian Quadro RW and IVIE obligations, coordination of FIRPTA issues, U.S. business banking assistance, succession and estate-planning coordination, and liaison with U.S.-licensed attorneys, CPAs and other local professionals where required.
Buying the property is only the first step. The real issue is structuring the investment correctly before closing, taking into account both U.S. and Italian tax consequences — book a cross-border consultation.
Yes. An Italian resident can generally purchase U.S. real estate without becoming a U.S. resident. The important part is structuring the purchase before closing and coordinating the Italian and U.S. tax consequences.
FIRPTA — the Foreign Investment in Real Property Tax Act — generally requires the buyer to withhold 15% of the gross sale price when a foreign person sells U.S. real estate, remitting it to the IRS on Forms 8288 and 8288-A within 20 days of closing. It is a collection mechanism, not the seller's final tax.
Yes. A Form 8288-B withholding certificate filed before closing can reduce it where 15% exceeds the expected tax on the gain, and a statutory exception brings it to 0% when the price is $300,000 or less and the individual buyer will use the property as a residence.
Yes, if you are an Italian tax resident. Foreign real estate is reported through the Quadro RW (Quadro W in the 730 form), which serves both asset monitoring and the calculation of IVIE and, where applicable, IVAFE.
IVIE is the Italian tax on the value of foreign real estate, at an ordinary rate of 1.06% (raised from 0.76% from 2024 and confirmed for 2026). For U.S. property the taxable base is generally the purchase cost revalued by ISTAT indices, and U.S. property taxes paid can be credited.
It can be. A non-resident generally receives a U.S. estate tax exemption of only $60,000 on U.S.-situs assets, with rates up to 40%, though the U.S.–Italy estate tax treaty may modify the result. Succession should be considered before buying.
Buying Property in Florida as an Italian Resident: Taxes, FIRPTA and Estate Planning is handled from our Florida practice for Italian clients living in the United States and in Italy: office in St. Petersburg (Pinellas County, Tampa Bay), assistance across Florida — including Miami and South Florida — and remotely throughout Italy.
Physical office (by appointment): IIILEX International Consulting LLC, 7901 4th St N STE 300, St. Petersburg, FL 33702, US · +1 (786) 604-8764 · +39 335 344 9660 · us@3lex.us
Office hours: Monday to Friday, 09:00–18:00 (US Eastern Time). Italian clients are also served in the Italian morning window (CET). Working languages: Italian and English.
Consultations are held online (video call) or in person at the St. Petersburg office. Documents are exchanged securely by e-mail.
Book a consultation (USD 250 · 45 minutes) · Send a contact request
IIILEX International Consulting LLC is the Florida-based practice of Avv. Dott. Massimo Leonardi — Italian-qualified Attorney (Avvocato), Dottore Commercialista and Statutory Auditor (Revisore Legale), qualified in Italy, with 30+ years of Italian practice. We work exclusively on cross-border matters between Italy and the United States, in coordination with licensed U.S. professionals for matters of U.S. law.
IIILEX International Consulting LLC · 7901 4th St N STE 300, St. Petersburg, FL 33702 · us@3lex.us · +1 (786) 604-8764 · +39 335 344 9660
Massimo Leonardi is admitted to practice law in Italy and is not admitted to practice law in Florida or elsewhere in the United States. He is qualified in Italy as Dottore Commercialista and Revisore Legale and is not a U.S. Certified Public Accountant. IIILEX International Consulting LLC provides cross-border consulting and Italian legal and tax advisory services. Matters requiring advice on U.S. or Florida law are handled in coordination with appropriately licensed U.S. professionals.