More than 50,000 Colombians invest in Miami
Colombia
If you’re thinking about buying a home or investing in Miami from Colombia, or diversifying your wealth in the United States, it’s essential to understand the tax, legal, and structural aspects before making a decision.
Miami has become one of the preferred destinations for Colombian investors thanks to its legal stability, dynamic real estate market, and dollar-denominated opportunities.
Can You Buy Property in Miami?
The answer is yes, and with fewer requirements than many people think. Florida's real estate market is open to foreign nationals, and Colombians are already among those taking advantage of it.
What you do need to keep in mind:
Taxes When Buying and Investing in Miami
When buying a property or investing in Miami from Colombia, you'll need to consider several taxes that apply to international buyers, including Colombians.
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Schedule a Free ConsultationTax implications in Colombia for Miami investors
This is the point many Colombians overlook. Colombia is one of the countries that taxes the worldwide income of its tax residents. This means that if you're a tax resident in Colombia, you must report rental income from your Miami property on your Colombian tax return.
Key points to keep in mind (always with guidance from a licensed Colombian accountant):
FIRPTA
FIRPTA (Foreign Investment in Real Property Tax Act) is a U.S. federal law that requires the buyer of real estate to withhold and pay the IRS a percentage of the sale price when the seller is a foreign national.
For Colombians and other Latin American investors, this means a 15% withholding at the time the property is sold.
Key points you need to understand:
Is It Worth Creating an LLC to Buy in Miami?
Colombian investors who choose to acquire properties in Miami through an LLC (Limited Liability Company) instead of buying in their own name. Both options carry different implications that should be evaluated on a case-by-case basis.
Considerations for Buying in Your Personal Name
Buying directly in your own name is simpler and less costly. There are no formation or additional maintenance costs. However, you'll be exposed to personal liability arising from the property, and your tax structure may require more individualized attention.
Why Is Miami Still a Great Bet?
Beyond the tax aspects, investing in Miami from Colombia remains one of the most effective wealth-building strategies available to Colombian investors:
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Notice: The information contained on this page is for informational purposes only and does not constitute tax, financial, or legal advice. We recommend consulting a qualified tax and/or legal advisor in Colombia and the U.S. before making any investment decision. LataMiami, Cosmore Florida Corp., a licensed real estate brokerage in Florida, is not authorized to provide tax or legal advice.
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