Taxation For Foreigners

Federal Income Tax

What is the federal tax rate?

Maximum rate of 35%
Sales tax is only 7% in Miami-Dade and 6% in Broward county, and services are exempted from this tax
In Florida, the property tax corresponds to approximately 1.8% of the assesses value of the property. This tax is also deductible.

As a reminder,, there is no ``State`` income tax in Florida

Taxes On The Added Value On Real Estate

How are the Capital Gains taxed?

In the case of resale, the capital gain realized is subject to a federal tax at the rate of up to 20%.
There is no State capital gain tax in Florida. The capital gain is taxable in the United States under Article 13-1 of the convention of August 31, 1994. France does not recognize the right to tax the potential capital gain realized in the United States. In practice, the method of calculating the capital gain usually allows a full exemption.

Taxes On Rental Income

How is the Rental Income Taxed?

Rental income from the rental of a real estate property in the United States is taxable in accordance to article 6-1 of the French-American convention of 31 August 1994. They are exempted from tax in France (tax credit mecanism referred to in Article 24). The possibility of amortizing the buildings and deducting tax added to all the expenses related to rental management, property taxes, insurance, loan interest, and even an airline ticket per year, allows most of the time to generate a very small profit or even a loss, and, thus, little or no income tax.

Each case is specific and will be handled by specialized lawyers