Tax Advisory

• Property Tax – Ranges from 1% to 2% of the assessed value, depending on the county.
• Income Tax (on rental income) – If you rent the property, income is taxed at progressive rates from 10% to 37% or, for non-residents, with a 30% withholding on gross income (reducible through a tax election).
• FIRPTA (tax on resale) – A 15% withholding on the sale price for foreign investors, which can be partly or fully recovered.

No! Florida is one of the most advantageous states because it does not levy a state income tax. Investors pay only federal taxes on rental income and capital gains.

The Foreign Investment in Real Property Tax Act (FIRPTA) requires a 15% withholding on the sale price for foreign investors. However, part or all of the amount can be recovered by filing a tax return showing the actual tax due.

Yes, in some cases:

• If the buyer is an individual who declares they will use the property as a primary residence (price under $300,000), the withholding can be reduced or eliminated.
• By structuring the purchase through an LLC or Corporation to optimize taxation.
• By applying for a FIRPTA withholding certificate showing the actual tax will be lower than the withholding.

It depends on the investor’s goals:

• In your own name – The simplest procedure, but may have disadvantages on resale due to FIRPTA.
• Through an LLC – Recommended for legal protection and tax advantages, with “pass-through” taxation (income taxed directly at the personal level).
• Through a C-Corp – Useful for those who want to retain profits within the company, with a flat 21% tax rate.

• Standard taxation for foreigners → 30% withholding on gross income, with no deduction of expenses.
• Net-basis taxation (the more advantageous option) → If you file Form W-8ECI and elect to declare expenses (maintenance, insurance, mortgage interest), income is taxed at progressive rates (10%–37%).

Yes, but thanks to the Italy–US Double Taxation Treaty, taxes paid in the US can be deducted from your Italian tax return through a tax credit.

If you sell a property at a profit, you will pay Capital Gains Tax, at rates of 15% or 20% for foreigners, depending on the holding period:

• Less than 1 year → Taxed as ordinary income (up to 37%).
• More than 1 year → Preferential rate of 15%–20%.

Gains are exempt up to $250,000 ($500,000 for married couples) if the property was used as a primary residence for at least 2 of the last 5 years.

Yes! A 1031 Exchange lets you defer capital gains taxes by reinvesting the sale proceeds in another similar property in the US, without paying tax on the gain right away.

• The properties must be held for investment (not primary residences).
• The reinvestment must take place within 180 days of the sale.

It is not mandatory, but strongly recommended to make it easier to manage income, tax payments and property expenses. Some banks allow foreigners to open accounts without a Social Security Number (SSN), using an ITIN (Individual Taxpayer Identification Number).