When buying a property in Miami, a Mexican buyer needs to consider more than just the property's listed price at the time of the transaction. This process includes paying taxes, fees, homeowners association dues, property management, and other costs the buyer takes on once they receive the keys.
In this guide, we'll walk you through everything you should keep in mind when buying a property in Miami, so you have a clear picture and avoid unplanned surprises down the road.
In this article:
- What taxes does a Mexican buyer pay when buying a property in Miami?
- What are the costs of buying a property in Miami?
- Costs of owning a property in Miami
- Taxes and costs if the property is rented out
- What should a Mexican buyer consider before buying in Miami?
- Frequently asked questions
What taxes does a Mexican buyer pay when buying a property in Miami?
Buying a property in Miami involves paying certain taxes set out under the rules governing real estate investments in the state of Florida.
Property tax
Property tax is the annual tax paid for owning real estate in the United States, similar to Mexico's predial. It's calculated on the property's assessed value — the value the county authority (the Miami-Dade County Property Appraiser) assigns each year as of January 1.
That value is multiplied by a rate that varies depending on where within Miami-Dade the property is located, and which can run between 1.75% and 2% of the assessed value per year (this is the rate in effect for 2026).
There's an exemption for those whose primary residence is in Florida, which reduces the amount owed, but it doesn't apply to foreign investors' properties, so the tax is calculated on the full value. It's paid once a year, due March 31, with a discount of up to 4% if paid early in November.
Transfer-related taxes
When the property deed is signed in Florida, the state charges a tax on that document known as the documentary stamp tax. Statewide, except in Miami-Dade County, this tax equals USD 0.70 for every USD 100 of the purchase price. In Miami-Dade, the rate is USD 0.60 per USD 100 for a single-family home, and USD 1.05 per USD 100 for other property types.
If the purchase is financed with a mortgage, an additional tax of USD 0.35 per USD 100 of the loan amount is added, plus a small tax (0.2% of the mortgage amount) charged for recording the mortgage with the state.
What's the difference between taxes when buying, holding, and selling?
When you buy in cash, you pay the taxes on the deed and, if there's a mortgage, the taxes tied to that financing. While you own the property, you pay property tax every year, and if it's rented out, the income must be reported to the IRS, the US tax authority.
When you sell, the Mexican buyer pays federal tax on the profit made on the sale. There's also a special withholding called FIRPTA, which requires the buyer to withhold 15% of the sale price and remit it to the IRS at closing (this percentage drops to 10%, or even 0% on lower-value sales when the buyer will use the property as their residence). This withholding isn't an additional tax — it's an advance payment, since if the actual tax owed is lower, the seller can recover the difference when filing their tax return with the IRS.
Tax considerations in Mexico and the United States
Mexico and the United States have a treaty to prevent the same person from being taxed twice on the same income. Thanks to this treaty, a Mexican citizen who pays taxes in the US on their property can credit that payment against the taxes owed in their home country, up to a certain limit.
Mexico taxes the income its residents earn anywhere in the world, so income generated by a property in Miami must be reported to the SAT, Mexico's tax authority. To credit what was paid in the US, you need a valid tax residency certificate and proof of the tax paid there.
In the United States, if the property generates rental income, the Mexican owner needs to obtain a tax identification number, called an ITIN, to report that income to the IRS. Since the rules vary depending on each person's situation, it's best to seek advice from an accountant or tax advisor experienced in international taxation, both in Mexico and the United States.
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What are the costs of buying a property in Miami?
To get the full picture of the costs you need to cover when buying a property in Miami, keep the following in mind:
Property price
This is the value agreed upon with the seller for the property. It's a key figure, not only because it's the price you take on for the transaction, but because it's the base on which most of the other purchase-related costs are calculated.
Closing costs
These are the additional expenses beyond the property's price that are paid when signing and closing the purchase. In Florida, they typically run between 2% and 5% of the property's value, and they cover title insurance, the inspection, legal fees, recording costs, and, if applicable, mortgage-related costs.
Title insurance
This insurance protects the buyer and, if applicable, the bank issuing the mortgage, against potential legal issues related to the property that could arise after the purchase, such as outstanding debts, errors in prior documents, or disputes over true ownership.
In Florida, the rate for this insurance isn't set by each company — it's set by the state through the Office of Insurance Regulation. That's why the cost is the same no matter which title company you choose. The rate is calculated as follows: USD 5.75 per USD 1,000 on the first USD 100,000 of the property's price, and USD 5.00 per additional USD 1,000 on the remaining amount. For example, on a USD 500,000 property, the buyer's title insurance costs around USD 2,575.
Inspection
Before closing the purchase, it's recommended to hire a professional property inspection to review its physical condition and detect any needed repairs. In Florida, this service typically costs between USD 300 and USD 600, depending on the property's size and age. In some cases, it's worth getting additional inspections, such as a wind mitigation inspection, which come at an extra cost.
Legal fees
Hiring a real estate attorney isn't mandatory in Florida, but it's recommended, especially for a foreign buyer. They review the contract, verify the property has no liens or legal issues, and accompany you through the closing process. Fees vary by firm and can be charged hourly or as a flat rate, but simple closings typically cost between USD 750 and USD 1,250.
Recording fees
Once the deed is signed, it must be recorded with the Clerk of the Circuit Court in the county where the property is located, so the transfer is officially on record. In Miami-Dade, this recording costs USD 10 for the first page of the document and USD 8.50 for each additional page.
Financing-related costs
If the purchase is made with a mortgage, additional costs are added, such as the property appraisal, the loan origination fee, and other charges the lender charges for issuing the loan. In the US, these are collectively known as "loan costs," and the amount varies by lender and financing program type.
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Costs of owning a property in Miami
If the Mexican buyer acquires the property to hold onto it — whether to live in it, as a second home, or to rent it out — they need to cover the following costs:
Property tax
As we already explained earlier in this guide, this is the annual tax paid for owning real estate in the United States.
HOA or condo maintenance fee
This is the monthly or quarterly payment made to the homeowners association of the condo or community where the property is located. It covers the community's operations, common area maintenance, amenities (pool, gym, security), trash collection, and, in many cases, collective insurance on the building's structure and services like water or internet.
Property insurance
This is the policy that protects the property against unforeseen events, structural damage, or weather-related events.
Individual maintenance
This is a budget set aside for the natural wear and tear and internal repairs of the property. It covers upkeep of air conditioning systems, appliances, paint, and plumbing. If the unit is rented out, keeping it in top condition protects its market value and the continuity of rental income.
Property management
If you buy your property from Mexico, rent it out, and don't plan to relocate, you can hire a specialized company to professionally manage your asset. The service includes rent collection, tenant screening, and handling emergencies and maintenance, typically at a cost of 8% to 10% of the monthly rent.
Special assessments
These are additional charges approved by a condo association to fund major repairs or structural improvements not covered by the ordinary reserve fund (for example, repainting the whole building, replacing roofs, or safety certifications).
Ad valorem and non-ad valorem taxes in Miami-Dade
Miami-Dade County distinguishes between ad valorem taxes (based directly on the property's assessed value) and non-ad valorem charges. The latter are fixed amounts tied to specific public services such as drainage, flood control, waste collection, or local infrastructure improvements, which vary based on each property's exact location.
Taxes and costs if the property is rented out
If you buy your property from Mexico and decide to rent it out to generate passive income in dollars, you need to consider the following taxes and costs you'll take on remotely:
Tax implications of rental income
Rental income earned in the United States is subject to federal income tax and must be reported to the IRS every year. However, you don't pay tax on the total collected, only on the net profit.
Property management
Hiring a professional management company makes it easier to handle rent collection, tenant relations, and day-to-day maintenance.
Additional insurance
When renting out the property, it's recommended to upgrade your insurance policy to a Landlord Policy, which includes liability protection against third parties and covers lost rental income if the property becomes uninhabitable due to a covered event.
Deductible expenses
US tax rules let you deduct all ordinary and necessary operating expenses from your gross rental income. Deductible items include mortgage interest, property tax, HOA fees, insurance premiums, management costs, repairs, and the property structure's book depreciation.
Differences between long-term and short-term rentals
Traditional long-term rentals typically involve 3-, 6-, or 12-month lease agreements, and offer the owner stable income, lower management costs, and less wear on the property. Local tourist taxes don't apply.
Short-term vacation rentals, Airbnb-style, involve renting out the property by the day or week. They offer higher potential income per night, but come with more tenant turnover, higher management costs, ongoing cleaning, and the obligation to collect and remit Miami-Dade County's tourist lodging taxes (Tourist Development Tax).
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What should a Mexican buyer consider before buying in Miami?
If you're going to make the decision to buy a property in Miami, there are several things worth considering before closing the deal:
Purchase structure
At this stage, you need to decide whether to buy the property in your personal name or through a legal entity in the US (such as an LLC). Buying through a company generally offers greater asset protection, flexibility in passing the asset to heirs, and tax planning advantages.
Tax planning
Evaluate the impact of income tax on rental earnings, the potential application of Estate Tax in the event of death for non-residents, and the withholding strategy for when you eventually sell.
Financing
Determine whether you'll use your own capital or a loan for foreigners (a Foreign National Loan or a DSCR Loan). Financing lets you preserve liquidity to diversify your assets and generate tax efficiency through interest deductions.
Property type
Choose the property format that directly matches your financial goal, such as a stand-alone house or townhouse for residential use, or a condo/condo-hotel legally licensed for vacation rentals.
Recurring costs
Get clarity on the monthly and annual budget the property requires (property tax, maintenance fees, insurance, and management) to project your real cash flow.
Future sale
Consider your exit strategy from day one, factoring in Capital Gains Tax and the foreign-seller withholding mechanism you'll face when eventually selling the property.
Frequently asked questions
It depends on how the property is used. If it doesn't generate income because it's for personal use, you only pay the annual property tax. If it's used to generate rental income, you also owe federal income tax, but only on the net profit (income minus deductible expenses and depreciation), with progressive rates starting at 10%.
In Miami-Dade County, property tax runs between 1.5% and 2.0% of the property's assessed value set by the county each year.
For a cash purchase, closing costs run between 1% and 2% of the property's value. For a purchase with mortgage financing, closing costs run between 3% and 5% of the property's value, due to state mortgage taxes and lender fees.
Beyond the monthly loan payment (principal and interest), you need to budget for property tax, the homeowners association fee (HOA), property insurance, internal maintenance, and, if applicable, rental management fees.
The United States taxes the income generated by the property located within its territory. In Mexico, as a tax resident, you must report your worldwide income; however, thanks to the Treaty to Avoid Double Taxation between the US and Mexico, you can credit the tax actually paid in the US against your Mexican tax return, avoiding paying twice on the same income.
You pay US federal income tax on the net rental profit. Additionally, if the property operates as a vacation or short-term rental (under 6 months), you must collect and remit the tourist and sales taxes (Sales Tax and Tourist Development Tax) that apply in Florida and Miami-Dade.
When you sell, you pay Capital Gains Tax on the actual profit earned. In addition, as a foreign seller, the transaction is subject to FIRPTA (Foreign Investment in Real Property Tax Act), which requires the buyer to temporarily withhold between 10% and 15% of the gross sale price and remit it to the IRS as a payment toward your taxes — an amount that's settled and adjusted when you file your final tax return.
Related guides
- Is It Cheaper to Buy a Property in Miami than in Mexico?
- How to Buy a Property in Miami from Mexico?
- Why Do Mexicans Invest in Miami?
- Real Estate in the United States
If you're looking for specific areas to buy in, explore condos for sale in Brickell and in Downtown Miami, or check out the full list of new real estate developments in Miami.
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