Tax Advantages of Buying Real Estate in Florida
By Attorney Jacqueline Salcines
When buyers think of Florida, they often picture ocean views, sunshine, and luxury living. But beneath the lifestyle perks lies another compelling reason people relocate and invest here: Florida’s incredibly favorable tax structure. As a real estate attorney, I’m Jacqueline Salcines, and I’ve advised countless clients — from first-time homebuyers to international investors — on how to legally maximize the tax benefits of buying property in Florida.
Here’s what you need to know:
No State Income Tax — A Game-Changer for High-Income Earners
Florida is one of only a handful of states that does not impose a personal income tax. That means:
- No tax on your salary
- No tax on rental income
- No state capital gains tax when you sell your property
For high-net-worth individuals relocating from states like California, New York, or Illinois, this alone can mean tens or even hundreds of thousands in savings each year.
Homestead Exemption: Property Tax Relief + Asset Protection
If the Florida property is your primary residence, you may qualify for the Homestead Exemption, which:
- Reduces your property’s taxable value by up to $50,000
- Caps annual property tax increases to 3%
- Offers strong creditor protection, shielding your home from most judgments and lawsuits
Properly applying for this exemption can create long-term tax stability and financial peace of mind.
Favorable Tax Treatment for Rental and Investment Properties
Florida is also ideal for buyers looking to purchase rental properties or vacation homes:
- No state income tax on rental profits
- Generous deductions available for depreciation, repairs, and management costs
- Strategic use of 1031 exchanges to defer capital gains when upgrading or swapping investment properties
I work closely with clients and their CPAs to ensure every investment property is structured to yield maximum return with minimum tax liability.
Tax Strategies for Foreign Buyers
Florida attracts investors from Canada, Europe, and South America. If you’re a foreign national buying real estate in Florida, working with a knowledgeable real estate attorney is critical. I guide clients through:
- FIRPTA tax compliance
- Structuring purchases through U.S. LLCs or trusts
- Avoiding double taxation and costly estate tax exposure
Plan Smart. Close Protected.
Buying property in Florida isn’t just a lifestyle upgrade — it’s a smart financial strategy. But to unlock the full tax advantages, the transaction needs to be structured with legal precision.
As Attorney Jacqueline Salcines, I bring 20+ years of legal and financial expertise to every deal — helping clients protect their investments and minimize tax liability at every stage.