FIRPTA Florida: A Complete Guide for Foreign Sellers in 2026

Florida is the #1 U.S. state for foreign-owned residential real estate. If you're selling a Florida property as a non-resident, FIRPTA is the federal withholding tax you need to understand before closing. This guide walks through every step.

Why Florida matters for FIRPTA

The National Association of Realtors' annual Profile of International Transactions in U.S. Residential Real Estate has shown Florida representing 21 to 25% of all foreign-buyer transactions every year for over a decade. Miami-Dade, Broward, Palm Beach, and Naples markets in particular attract sustained inbound capital from Canada, Brazil, Colombia, Argentina, Mexico, Venezuela, and the UK.

Many of those foreign-purchased properties eventually become foreign-seller properties. When they do, federal FIRPTA withholding triggers at closing — and Florida sees more of these closings than any other state in the U.S.

The federal rules: same as anywhere

FIRPTA is a federal regime under IRC §1445. Florida doesn't get its own version. The rules that apply in Miami also apply in Manhattan, Maui, and Marin County:

• Default withholding rate: 15% of the gross sales price (not gain). Reduced to 10% or 0% for owner-occupied residence sales under specific buyer-affidavit conditions.
• Withholding agent: the BUYER, by statute. Personal liability for any shortfall.
• Forms: Form 8288 (buyer's transmittal), Form 8288-A (per foreign seller), Form 8288-B (optional, pre-closing withholding-reduction certificate).
• Filing deadline: Forms 8288 + 8288-A + withheld funds must reach IRS Ogden within 20 calendar days of closing.
• Mailing address: USPS to P.O. Box 409101, Ogden, UT 84409. FedEx/UPS/DHL must use the street address: 1973 Rulon White Boulevard, Ogden, UT 84404. Private carriers cannot deliver to PO Boxes.

The Florida advantage: no state-level withholding

This is where Florida actually differs from many other foreign-investor states:

• California: 3.33% state withholding stacks on FIRPTA
• Hawaii: 7.25% HARPTA withholding stacks on FIRPTA
• Maryland: 8% (individuals) / 8.25% (entities) state withholding stacks
• Georgia: 3% state withholding stacks
• Colorado: 2% state withholding on sales over $100K stacks
• Florida: NO state income tax, NO state nonresident-seller withholding. Federal FIRPTA at 15% is the only withholding obligation.

For foreign sellers comparing destination states, Florida's federal-only structure is a meaningful cost advantage. The 15% withholding still applies, but no parallel state regime layers on top.

Florida documentary stamp tax (separate from FIRPTA)

Florida does charge a documentary stamp tax on real property deeds — $0.70 per $100 of sales price statewide, $0.60 per $100 in Miami-Dade County. This is the deed transfer tax and is paid by the seller at closing. It's separate from FIRPTA and unrelated to the seller's foreign or domestic status. Both costs reduce the seller's net proceeds, but they're administered by different tax authorities and don't interact.

Form 8288-B: how to reduce the 15%

The single most valuable FIRPTA move for a Florida foreign seller is Form 8288-B, the Application for Withholding Certificate. Filed BEFORE closing, it asks the IRS to authorize a reduced withholding amount based on the seller's actual expected U.S. tax on the gain — typically a small fraction of 15% of the gross.

Example: a Brazilian seller with a $750K Miami property, $420K basis, $330K gain. Without an 8288-B, 15% of $750K = $112,500 sent to the IRS at closing. With an 8288-B reflecting the actual ~$66K tax on the gain, $66K is held in escrow and $46,500 stays in the seller's hands at the closing table. That's the value of filing the 8288-B 60+ days before closing.

IRS processing typically takes 60-90 days from a complete submission. The practical recommendation is to file 60+ days before the projected closing date.

The 2026 wrinkles

Three rule changes affect Florida foreign sellers in 2026:

1. Form 8288 January 2026 revision. The IRS now requires one separate Form 8288 per disposition and one Form 8288-A per foreign seller. Multi-seller closings (common with foreign-family-owned property) now require more forms.

2. Section 899 surcharge. Sellers from countries classified as imposing "discriminatory" foreign taxes on U.S. persons face a 5-20 percentage point surcharge on top of normal FIRPTA gain rates. The list is updated annually.

3. 1% remittance excise tax (IRC §4475). Effective January 1, 2026, a 1% federal excise tax applies to most outbound wire transfers from the U.S. — so when the foreign seller eventually wires the proceeds home, 1% comes off the top, in addition to FIRPTA withholding. Transfers funded by U.S. debit or credit cards are excluded.

Working with a Florida title company

Florida title companies see foreign-seller closings frequently — more than title companies in any other state. The closing playbook for FIRPTA-aware Florida offices typically routes the FIRPTA mechanics to a specialist firm that engages directly with the buyer and seller (no fee to the title company). The title company keeps the closing on schedule; the specialist handles Forms 8288, 8288-A, the 8288-B if applicable, ITIN coordination, and the 20-day mailing to IRS Ogden.

If you're a Florida foreign seller and your title company hasn't surfaced FIRPTA at the table, ask: "How are we handling the federal withholding on this sale?" If the answer isn't clear, that's the moment to bring in a FIRPTA specialist.

Bottom line for Florida foreign sellers

1. 15% federal FIRPTA withholding applies at closing. No state withholding.
2. File Form 8288-B 60+ days before closing to reduce the withholding to your actual tax owed.
3. Make sure you (or your representative) have an ITIN — required for the 8288-B and the eventual 1040-NR refund return.
4. Plan for the 1% IRC §4475 remittance excise on any wire of proceeds out of the U.S. after closing.
5. File Form 1040-NR the following year to claim credit for the FIRPTA withheld and recover any over-withholding. June 15 deadline.

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