Beyond the purchase price, international buyers face closing costs and ongoing expenses that are easy to underestimate. Planning for them protects your budget and your investment. Here's a clear breakdown of the closing costs and taxes international buyers should expect when buying Miami real estate.
Quick Answer
International buyers in Miami should budget 2–5% of the purchase price for closing costs, including title insurance (~0.575%), documentary stamp taxes ($0.70 per $100), recording fees, and attorney fees. Ongoing costs include annual property taxes and insurance. FIRPTA (15% withholding) applies at resale, not purchase, but should be planned early.
Key Takeaways
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Total closing costs typically run 2–5% of the purchase price.
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Title insurance runs about 0.575% of the price.
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Documentary stamp tax is $0.70 per $100 of value.
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FIRPTA withholding (15%) applies when a foreign owner sells.
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Budget for annual property taxes, insurance, and HOA fees.
Closing Cost Breakdown
Typical buyer closing costs include title insurance (~0.575%), documentary stamp taxes ($0.70 per $100), recording fees, attorney fees, and HOA estoppel charges. Cash buyers pay less than financed buyers, who add loan-related fees. These sit within the broader path described in our international buyers guide.
Title Insurance and Legal Fees
Title insurance protects against ownership disputes and is standard in Florida. Most international buyers also engage a real estate attorney — especially useful for entity structuring and remote closings, as outlined in our guide to buying property in Miami as a foreigner.
FIRPTA and Taxes
FIRPTA requires 15% withholding on the gross sale price when a foreign owner sells (reduced or waived for certain lower-priced primary residences). It applies at resale, not purchase — but structuring the acquisition wisely can minimize future exposure. Foreign owners also face estate-tax considerations, making early planning important.
Ongoing Ownership Costs
Budget for annual property taxes, homeowners and flood insurance, and HOA or maintenance fees. These recurring costs affect returns, especially for investors — weigh them in our guide to Miami real estate investment for international buyers.
Comparison: Cash vs. Financed Closing Costs
| Cost Item | Cash Buyer | Financed Buyer |
| Title insurance | ~0.575% | ~0.575% |
| Doc stamps | $0.70/$100 | $0.70/$100 + note tax |
| Loan fees | None | Origination, appraisal |
| Typical total | ~2–3% | ~3–5% |
FAQ
How much are closing costs in Miami for foreign buyers? Typically 2–5% of the purchase price, depending on financing and structure.
What is FIRPTA and when does it apply? FIRPTA is a 15% withholding on the gross sale price that applies when a foreign owner sells, not at purchase.
Do international buyers pay property taxes in Miami? Yes. Annual property taxes apply to all owners, along with insurance and any HOA fees.
Is title insurance required in Florida? It is standard practice and strongly recommended to protect against ownership disputes.
Conclusion
Understanding closing costs and taxes helps international buyers budget accurately and invest wisely. With deep experience guiding global buyers, Claudia Fernandez ensures no surprises. Contact Claudia to plan your Miami purchase.
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