11/25/2025

How to Buy a Condo in Miami as a Canadian: The Complete 2025 Guide

Yes, Canadians can buy property in Florida with no restrictions. There are no citizenship requirements, no special permits needed, and no limits on what type of property you can purchase. The process is straightforward, though it does involve some cross-border tax planning and a few extra steps that American buyers do not have to worry about.

This guide covers everything you need to know about buying property in Miami as a Canadian, from financing and legal requirements to taxes and property management. Whether you are looking for a winter escape, an investment property, or a permanent relocation, the information here will help you avoid common mistakes and make informed decisions.

Why Canadians Are Buying Miami Real Estate

Canadian buyers have been a major force in Florida real estate for decades. The reasons are pretty obvious if you have ever spent a February in Toronto or Vancouver.

Climate is the big one. Miami averages 249 sunny days per year compared to Toronto's 203. Winter temperatures in Miami rarely drop below 60°F (15°C), while Canadian cities regularly see weeks of subzero weather.

The flight is short. Toronto to Miami is about 3 hours. Vancouver to Miami is roughly 5.5 hours. That makes weekend trips and seasonal living genuinely practical.

No state income tax. Florida does not collect state income tax, which creates planning opportunities for Canadians who spend significant time in the state or who earn rental income from their property.

Strong rental demand. Miami's tourism industry and growing population of remote workers means condos in popular areas can generate solid rental income during the months you are not using them.

Currency diversification. Owning US dollar assets can be a hedge against Canadian dollar fluctuations, though currency swings cut both ways.

Many Canadians start as snowbirds, renting for a few winters before deciding to buy. If you are at that stage, browsing Miami condos for sale can give you a sense of what is available in different neighborhoods and price ranges.

Legal Requirements for Canadian Buyers in Florida

Can Canadians legally buy property in Florida?

Yes. Foreign nationals, including Canadians, can purchase residential real estate in Florida with no restrictions. You do not need a visa, green card, or any special permit to own property.

What documents do you need?

The documentation requirements for Canadians buying Florida real estate include:

Valid Canadian passport
Proof of funds (bank statements, investment account statements)
ITIN (Individual Taxpayer Identification Number) or application for one
Proof of address in Canada
If financing, additional income and credit documentation

What is an ITIN and do you need one?

An ITIN is a tax processing number issued by the IRS for individuals who are required to have a US taxpayer identification number but are not eligible for a Social Security Number. You will need an ITIN to:

File US tax returns on rental income
Claim treaty benefits
Complete the sale of your property
Open certain US bank accounts

You can apply for an ITIN using IRS Form W-7. Many Canadians apply during the purchase process, as your real estate attorney or accountant can help with the paperwork.

Are there any ownership restrictions?

No restrictions on ownership type. You can hold Florida property in your personal name, through a Canadian corporation, a US LLC, or various trust structures. Each has different implications for liability protection, estate planning, and taxation. Most cross-border tax professionals recommend discussing structure before you make an offer, not after.

Financing Options: Canadian Banks vs US Mortgages

Canadians have several options for financing a Miami property purchase. Each has trade-offs in terms of rates, complexity, and qualification requirements.

Option 1: Pay Cash

Many Canadian buyers purchase Florida property outright. This simplifies the transaction significantly and makes your offer more competitive. Cash offers close faster and do not have financing contingencies, which sellers prefer.

Option 2: Canadian Bank Financing

Several Canadian banks offer cross-border mortgage products:

RBC Bank (US): RBC has a US subsidiary that works specifically with Canadian clients buying US property
TD Bank: TD operates in both countries and offers mortgage products for Canadians buying in Florida
BMO Harris: BMO's US operations can provide financing for qualified Canadian buyers

The advantage of going through a Canadian bank is familiarity. They understand Canadian credit history, income documentation, and the cross-border situation. The process tends to be smoother than working with a US lender who has never dealt with a Canadian buyer before.

Option 3: US Lender Financing

US banks and mortgage companies do lend to foreign nationals, but the terms are typically less favorable:

Down payment requirements of 30% to 50% (compared to 20% to 25% for domestic buyers)
Higher interest rates (often 0.5% to 1% above standard rates)
More documentation requirements
Longer processing times

Some US lenders specialize in foreign national mortgages. If you go this route, work with a lender who has experience with Canadian buyers specifically.

Option 4: Home Equity Line of Credit (HELOC) on Canadian Property

If you own property in Canada with significant equity, you can borrow against it to fund your Miami purchase. This means you are technically paying cash in the US transaction while financing through your Canadian property.

Benefits include:

Canadian interest rates and terms
No foreign buyer premium
Simpler US closing process
Interest may be deductible in Canada (consult your accountant)

The Purchase Process Step by Step

Here is what the buying process looks like for a Canadian purchasing Miami real estate:

Step 1: Determine Your Budget and Structure

Before you start looking at properties, figure out:

Your total budget including closing costs (typically 2% to 5% of purchase price)
How you will hold the property (personal name, LLC, trust)
Your financing approach

Consult with a cross-border tax professional at this stage. The decisions you make here affect your tax situation for as long as you own the property.

Step 2: Get Pre-Approved (If Financing)

If you are financing through a Canadian bank, get pre-approved before you start seriously shopping. This tells you exactly what you qualify for and makes your offer stronger when you find the right property.

Step 3: Find a Miami Real Estate Agent

Work with an agent who has experience with Canadian buyers. They will understand the unique considerations like timing visits around your schedule, handling offers remotely, and connecting you with cross-border professionals.

Pink Miami works regularly with Canadian clients and can help you search for properties that match your criteria and budget.

Step 4: Search for Properties

Once you know your budget and have an agent, you can start viewing properties. Many Canadians do initial searches online, then plan a trip to Miami to see their shortlist in person.

You can browse current Miami real estate listings to get a sense of what is available in different neighborhoods.

Step 5: Make an Offer

When you find a property you want, your agent will help you prepare an offer. In Florida, offers are made using a standard purchase contract. Key terms include:

Purchase price
Deposit amount (typically 5% to 10%)
Financing contingency (if applicable)
Inspection period (usually 10 to 15 days)
Closing date

Step 6: Due Diligence Period

Once your offer is accepted, you enter the inspection period. During this time you can:

Conduct property inspections
Review condo association documents (for condos)
Verify HOA financials and reserve funds
Finalize your financing
Walk away for any reason (you get your deposit back during this period)

Step 7: Closing

Closing in Florida typically happens 30 to 45 days after the contract is executed, though cash deals can close faster. As a Canadian, you do not need to be physically present at closing. Your attorney can handle everything with a power of attorney.

At closing, you will:

Wire your funds to the title company
Sign closing documents (remotely via notary or in person)
Receive the keys and deed

Tax Implications for Canadian Property Owners

Owning US real estate as a Canadian creates tax obligations in both countries. This is not as scary as it sounds, but it does require proper planning and annual compliance.

US Tax Obligations

Rental Income

If you rent out your Miami property, you must file a US tax return (Form 1040-NR) and report that income. You have two options:

30% Withholding: Your property manager withholds 30% of gross rental income and remits it to the IRS. Simple but usually results in overpayment.
Net Rental Income Election: By filing Form W-8ECI, you can elect to be taxed on net rental income (after expenses) at graduated rates. This usually results in significantly lower tax because you can deduct mortgage interest, property taxes, insurance, HOA fees, repairs, and depreciation.

Most tax professionals recommend the net income election for Canadians with rental properties.

Sale of Property

When you sell, you will owe US capital gains tax on any profit. The rate depends on how long you owned the property and your income level, but expect 15% to 20% for long-term gains.

Canadian Tax Obligations

Reporting Requirements

Canadian residents must report worldwide income, including US rental income and capital gains. You can claim foreign tax credits for US taxes paid to avoid double taxation. The Canada-US Tax Treaty provides mechanisms for this.

Form T1135

If your US property cost more than $100,000 CAD, you must file Form T1135 (Foreign Income Verification Statement) with your Canadian tax return annually.

Estate Tax Considerations

This is where it gets tricky. US estate tax applies to the worldwide estate of US citizens and residents, but it also applies to US-situated assets (like Florida real estate) owned by non-residents.

The US estate tax exemption for non-residents is only $60,000 USD (compared to over $13 million for US citizens). However, the Canada-US Tax Treaty provides relief that can increase this exemption proportionally based on your worldwide estate.

Proper estate planning is critical for Canadians owning US real estate. Common strategies include:

Holding property in a Canadian corporation (has other tax implications)
Life insurance to cover potential estate tax liability
Cross-border trust structures

Do not skip this planning step. Consult with a cross-border tax attorney or estate planner.

FIRPTA Withholding: What You Need to Know

What is FIRPTA?

FIRPTA stands for Foreign Investment in Real Property Tax Act. It is a US law that requires buyers to withhold a portion of the purchase price when buying real estate from a foreign seller and remit it to the IRS.

How does FIRPTA affect Canadian sellers?

When you sell your Miami property, the buyer (or their title company) is required to withhold 15% of the gross sale price and send it to the IRS. This is not a tax. It is a withholding that goes toward your eventual US tax liability on the sale.

Example: If you sell your condo for $500,000 USD, $75,000 USD will be withheld at closing and sent to the IRS. When you file your US tax return for that year, you calculate your actual capital gains tax. If your tax is less than what was withheld, you get a refund.

Can you reduce FIRPTA withholding?

Yes. You can apply for a withholding certificate (using IRS Form 8288-B) before closing. If your actual tax liability will be lower than 15% of the sale price, the IRS may authorize reduced withholding. This requires advance planning, as the application process can take several months.

Currency Considerations and Timing Your Purchase

The CAD/USD exchange rate can significantly impact your purchase cost. A 5% swing in the exchange rate on a $500,000 USD property means a $25,000 CAD difference in what you pay.

Historical context: The Canadian dollar has traded between roughly 0.70 USD and 0.85 USD over the past decade. At the time of writing, rates fluctuate regularly based on oil prices, interest rate differentials, and broader economic conditions.

Strategies for managing currency risk:

Forward Contracts: Lock in an exchange rate for a future date. If you know you will need USD in 60 days for closing, you can lock in today's rate.
Currency Transfer Services: Companies like Wise, OFX, or Knightsbridge specialize in large currency transfers and typically offer better rates than banks.
Gradual Conversion: If you are planning to buy in 6 to 12 months, convert smaller amounts over time to average out rate fluctuations.
USD Income: If you have sources of USD income, accumulating over time reduces your exposure.
Hold USD: Consider keeping sale proceeds in USD if you might buy another US property.

There is no way to perfectly time currency markets. Most advisors recommend focusing on the property decision first and managing currency as a secondary consideration.

Choosing the Right Miami Neighborhood

Miami is a collection of very different neighborhoods, each with its own character, price points, and lifestyle. Here is a quick overview for Canadian buyers:

Sunny Isles Beach

Known informally as "Little Moscow" due to its large Russian and Eastern European population, Sunny Isles also has a significant Canadian presence. High-rise oceanfront condos dominate here. It is quieter than South Beach, with excellent beach access and a more residential feel.

Brickell

Miami's financial district. Young professionals, urban living, walkable to restaurants and nightlife. High-rise condos with great amenities. This is where you go if you want city living.

Miami Beach

The classic choice. South Beach for nightlife and Art Deco, Mid-Beach and North Beach for a slightly quieter oceanfront experience. Parking can be challenging, and some buildings have rental restrictions.

Aventura

Suburban feel with excellent shopping (Aventura Mall) and good schools. Popular with families. More space for your money compared to beachfront areas.

Coconut Grove

Bohemian, tree-lined, village atmosphere. Close to downtown but feels removed. A good option if you want something different from the typical high-rise condo experience.

Key Biscayne

Island living with a small-town feel. Beautiful beaches, very safe, family-oriented. More expensive and isolated from the rest of Miami.

You can explore available properties across these neighborhoods through Pink Miami's listings.

Working with a Miami Real Estate Agent from Canada

You do not need to be in Miami to work with a real estate agent. Here is how the process typically works for Canadian buyers:

Initial Consultation

This usually happens via phone or video call. You discuss your goals, budget, preferred neighborhoods, timeline, and any specific requirements.

Remote Search

Your agent sends you listings, videos, and information about properties that match your criteria. You can narrow down options before visiting.

Property Tours

When you visit Miami, your agent arranges showings of your shortlist. Many Canadians spend 2 to 4 days viewing properties before making a decision.

Offer and Negotiation

This can happen remotely. Your agent prepares the offer, you review and sign electronically, and they handle negotiations.

Closing

With a power of attorney, you do not need to be present at closing. Your attorney handles everything.

When choosing an agent, look for:

Experience with Canadian buyers
Knowledge of cross-border considerations
Responsiveness to your time zone
Connections to cross-border professionals (tax accountants, attorneys, mortgage brokers)

Closing Costs and What to Expect

Closing costs in Florida are typically 2% to 5% of the purchase price. Here is what Canadians should budget for:

Buyer Closing Costs:

Title Insurance (Owner's Policy): 0.5% to 1% of purchase price
Title Search and Exam: $200 to $400
Survey (if required): $300 to $500
Recording Fees: $100 to $200
HOA Estoppel Letter: $250 to $500
Attorney Fees: $500 to $1,500
ITIN Application (if needed): $50 to $300
Wire Transfer Fees: $50 to $100

Note: In Florida, the seller typically pays for documentary stamps on the deed and the owner's title insurance policy (in most counties outside Miami-Dade). Customs can vary, so confirm with your agent what is standard in your transaction.

Additional Costs to Budget:

First year of property insurance (required before closing)
HOA dues (often 2 to 3 months collected at closing)
Property tax prorations
Utility deposits

For a $500,000 condo, budget roughly $10,000 to $20,000 in closing costs and initial expenses.

Property Management for Absentee Owners

If you will not be living in your Miami property year-round, property management is worth considering. This is especially true if you plan to rent it out.

What do property managers do?

Collect rent and handle tenant issues
Coordinate maintenance and repairs
Conduct regular property inspections
Pay bills on your behalf (HOA, utilities, insurance)
Handle cleaning between rentals
Manage short-term rental listings (if applicable)

What does it cost?

Property management fees typically range from 8% to 12% of collected rent for long-term rentals, and 20% to 30% for short-term vacation rentals. Some managers charge flat monthly fees instead.

Do you need a property manager?

It depends on:

How often you will be in Miami
Whether you plan to rent the property
Your comfort level handling issues remotely
Whether you have trusted local contacts

Many snowbirds who only rent occasionally find that their condo building's front desk can handle basic tasks like accepting packages or letting in repair people. Full property management makes more sense if you are actively renting or cannot visit regularly.

Frequently Asked Questions

Can Canadians get a mortgage in Florida?

Yes. Canadian banks with US operations (RBC, TD, BMO) offer mortgages to Canadians buying Florida property. US lenders also provide foreign national mortgages, though with higher down payment requirements (typically 30% to 50%) and higher interest rates.

How long can Canadians stay in Florida?

Canadians can stay in the US for up to 6 months per year on a B-2 tourist visa (technically a visa waiver for Canadians). Staying longer requires a different visa status. Tax residency is a separate issue. Spending too much time in the US can create US tax residency, so track your days carefully.

Do Canadians pay property tax in Florida?

Yes. Florida property taxes apply to all property owners regardless of citizenship. Rates vary by county but typically range from 1.5% to 2% of assessed value annually. Non-residents do not qualify for Florida's homestead exemption.

Is rental income from a Florida property taxed in Canada?

Yes. Canadian residents must report worldwide income, including US rental income. You can claim a foreign tax credit for US taxes paid to avoid double taxation. Work with a cross-border accountant to handle the reporting correctly.

What happens if a Canadian property owner passes away?

US estate tax may apply to the Florida property, and the estate must go through Florida probate unless the property is held in a trust or other structure that avoids probate. Canadian estate laws and taxes also apply to the worldwide estate. Cross-border estate planning is highly recommended.

Can Canadians buy property through an LLC?

Yes. Some Canadians hold Florida property through a US LLC for liability protection and estate planning purposes. However, this has tax implications in both countries. The LLC structure can create a taxable benefit in Canada and may affect your ability to claim certain deductions. Consult with a cross-border tax professional before deciding on ownership structure.

Ready to start your Miami property search? Contact Pink Miami to connect with agents who work regularly with Canadian buyers and can guide you through the cross-border purchase process.