Owning a second home in Miami can open many doors that may not be immediately apparent. In this city, property represents vision and strategy, a prominent international profile, steady economic momentum, and a privileged environment.
Whether as an investment asset, a hub for operations, or a space to reconnect, this location offers unique opportunities that the market does not easily replicate. Join us and learn how to invest in that second property.
Second home in Miami: opportunities for foreigners
It is no secret that Miami is a vibrant place full of opportunities. The city is beautiful to high-income Latin American entrepreneurs who have accumulated assets over the past 25 years.
It offers an environment that combines security, social prestige, and solid economic prospects. The cultural and geographic proximity to Latin America facilitates the process. It makes acquiring a second property a natural extension of your investment and lifestyle aspirations (Trujillo, 2022).
In this sense, it is necessary to highlight that we can mainly divide investors into two types of profiles:
- Those looking for rental properties.
- Those who want a second home in Miami for personal and family use.
Both profiles share a constant search for new business opportunities and a deep interest in both the economy and investments.
We recommend having a trusted advisor to support you when applying for a loan. Develop a transparent and efficient process aligned with your goals.
What are the legal and tax aspects of acquiring a property?
Before purchasing a second home in Miami as a foreign national, it is essential to understand the specific legal regulations and tax obligations. With sound advice, you will be better prepared to make a profitable investment.
Second home in Miami: legal framework of ownership
The legal system in the United States, and particularly in Florida, is robust and transparent regarding real estate ownership. However, to acquire a property, you will need a real estate attorney. This professional will be responsible for:
- Check the titles to verify the property has no liens, debts, or previous ownership issues that could affect your purchase.
- Review and negotiate the terms of the sales contract to protect your interests.
- Coordinate all necessary documents for the transfer of ownership, including the deed and other agreements.
Engaging a qualified attorney is a fundamental step in the process. Indeed, this guidance provides the legal certainty required for a sound international investment, streamlining the purchase process.
Tax obligations when owning a second home in Miami
Tax implications are a critical component when considering how to buy a home in Miami as a foreigner. These are the central taxes to consider (Auerbach, 2024; Burgos, 2025):
- First, property tax. This is an annual tax calculated based on the appraised value of the property and varies by county. It is a recurring cost that should be included in your budget.
- Second, regarding rental income. If your second home in Miami generates rental income, it is subject to federal and state tax obligations. Check what deductions are allowed and whether a double taxation treaty between the US and your country of residence applies to avoid paying taxes twice on the same income.
- On the other hand, there is a capital gains tax. When selling, you may be subject to this tax on any profits you obtain. The rate will depend on the length of time you have held the property.
- Finally, regarding inheritance (Estate Tax). Non-residents are entitled to a minor exemption from this tax. Proper estate planning, often through an LLC structure, helps minimize this impact.
Without a doubt, navigating these tax complexities is crucial for the profitability of your investment. Therefore, working with a specialized tax advisor is a highly recommended strategic move for any investor.
Ideal financing options for your second home in Miami
One of the biggest obstacles for foreign investors is obtaining credit. Fortunately, there are several options, and Avanti Lending specializes in offering solutions tailored to your profile.
Conventional and non-QM Credits: What you need to know
Conventional financing requires a U.S. credit history. However, foreign investors seeking a second home in Miami often qualify for non-qualified mortgage (QM) loan programs. These loans are more flexible in their documentation requirements and are designed for non-traditional profiles. They are characterized by (Investopedia, 2024):
- Alternative documentation. Instead of U.S. tax returns or local credit histories, lenders accept financial documents from your home country. These typically include bank statements, reference letters, or reports issued by international credit bureaus.
- Down payment. Although non-residents typically pay a higher down payment, between 25% and 40%, other options are available. The flexibility of such programs allows lenders to adapt them to different financial capacities and economic profiles without additional complications.
- Attractive rates. They are almost always slightly higher than those offered to citizens or people with local status. However, they remain a viable option in the current financial environment. This enables international investors to access financing and capitalize on available opportunities.
At Avanti Lending, we have the experience and connections to guide you through the various non-contract loan options. We will help you find the most suitable financing solution for your new real estate purchase.
Private credit options for second Homes in Miami
In addition to bank mortgage loans, there are other financing alternatives available:
- Seller Financing.In some cases, the property owner is willing to finance part of the purchase. This option may offer more flexible terms, but it is less common and requires careful negotiation.
- Equity capital or private investors. Some buyers prefer to use their resources or seek joint ventures with partners. This option eliminates the need for a loan, but requires greater initial liquidity.
These alternatives provide valuable flexibility when bank financing is not the ideal path. In this way, evaluating all capital sources helps you structure a purchase aligned with your financial strategy.
Practical tips for applying for credit and managing extra costs
A smooth process when applying for a loan for your second home in Miami depends primarily on understanding all the associated costs. Let us review some relevant aspects in the following lines.
Optimize your mortgage loan application step by step
If you want to become a foreign investor, the best thing you can do is be prepared. Here are some recommendations to expedite your application:
- Organize your documentation. Have bank statements (personal and business), tax returns from your country, and proof of income and assets on hand. Ensure they are up to date and, if necessary, have them translated by an expert and then apostilled.
- Establish a solid financial profile. Demonstrate stable income and a good savings capacity. Avoid making large bank transfers or opening new lines of credit immediately before applying for the loan.
- Seek specialized advice early. Contact Avanti Lending from the beginning. Our experience with foreign investors in the area is a plus. We will guide you so that you have all the specific requirements and information related to the acquisition process at your fingertips.
- Learn about pre-approval. This step will give you a clear idea of how much you can borrow, a key element in your search.
A well-organized application significantly strengthens your position as a borrower. Furthermore, this level of preparation demonstrates financial responsibility and can positively influence the lender’s decision.
Budgeting beyond the purchase price of the property
The sale price is not the only consideration when buying a second home in Miami. Keep these additional variables in mind (Almquist et al., 2025):
- Closing costs. These include loan origination fees, legal fees, title insurance, and transfer taxes. Also, costs associated with the appraisal and evaluation. These can represent between 2% and 5% of the financed value.
- Annual property taxes. This is a recurring expense that you should not ignore.
- Insurance. You need a homeowners policy in Miami that includes hurricane and, when applicable, flood protection. These policies can be expensive and should be factored into your budget.
- Maintenance and HOA dues. These expenses vary, but it is always wise to set aside a percentage of the property’s value for unforeseen expenses. In condominiums, HOA fees cover the maintenance of common areas and amenities.
- Utilities such as water, electricity, internet, and related services will be monthly expenses.
- Property management. If you plan to rent out your property, consider the cost of a property management company. Keep in mind that it is typically a percentage of your rental income.
Thorough planning of all these expenses will help you have a clear financial vision and avoid surprises. This way, your investment in a second home in Miami can be sustainable and well-positioned for growth.
Important recommendation: Before closing a purchase, consult with an accountant or a specialized real estate agent to accurately estimate local taxes, maintenance costs, and mandatory insurance.
Buy your second home in Miami with Avanti Lending
For Latin American entrepreneurs, selecting a financial partner is just as crucial as choosing the property itself. At Avanti Lending, we have become a trusted and expert partner. We have a clear goal: to facilitate your path to real estate investment in this magnificent city.
If you are ready to take the next step toward purchasing your second home in Miami, we invite you to contact us. Discover the customized solutions we offer and start your journey toward a solid investment in South Florida. Discover our services and begin your homeownership journey today.
References
- Almquist, E., Carter, V., & Myers, T. (2025, January 21st). What is next for insurance in Florida? Marsh McLennan.
- Auerbach, M. (2024). Capital Gains Tax: An Overview. EBSCO.
- Burgos, M. (2025, June 13rd). What Are Inheritance Taxes? Turbotax.
- Grace, M., and Yale A. (2025, May 23rd). Average Mortgage Closing Costs for Buyers. Business Insider.
- Investopedia. (2024). What Is a Bank Statement Loan?
- Trujillo, E. (2022, June 1st). Second home. Economipedia.