Thinking about a Boca Raton property as an international buyer, or preparing to sell to one? You are not alone. Florida consistently leads the nation for international home purchases, and many of those buyers target South Florida’s coastal markets. This is where questions about financing and FIRPTA withholding show up at the closing table. In this guide, you will learn the essentials you need to plan your purchase or sale with confidence. Let’s dive in.
Why this matters in Boca Raton
Boca Raton sits within one of the most active international buyer corridors in the U.S. Foreign buyers often pay cash, pursue second homes and rentals, and transact at higher price points compared to the broader market. NAR’s reporting confirms Florida’s top share of international purchases.
With this mix, you are more likely to see a foreign seller subject to FIRPTA or a foreign buyer navigating specialized lending. Understanding both topics keeps your deal on track.
FIRPTA basics you must know
FIRPTA is a federal rule that requires tax withholding when a U.S. real property interest is sold by a foreign person. The buyer is the withholding agent and can be held liable for failures to collect and remit. Review the IRS overview of FIRPTA withholding if you are new to the topic.
Key withholding rates and exceptions
- General rate: 15% of the amount realized.
- Residence exceptions commonly used in single‑family sales:
- If you will use the property as a residence and the price is $300,000 or less, no withholding.
- If you will use the property as a residence and the price is over $300,000 up to $1,000,000, withhold 10%.
- If the price is over $1,000,000, withhold 15%.
For details, see the Instructions for Form 8288.
How the process works
- At closing, the buyer or closing team calculates withholding and files Form 8288 with Form 8288‑A. Payment is due to the IRS generally within 20 calendar days after the transfer. See the Form 8288 instructions for timing and mailing details.
- A foreign seller can request a reduced or zero withholding by applying for a withholding certificate using Form 8288‑B. The IRS typically acts on a complete application in about 90 days. Learn more about the withholding certificate process.
- If the seller needs a U.S. taxpayer ID for the application, the IRS provides ITIN guidance for foreign property buyers and sellers.
Who is responsible
Title or escrow may help with forms and funds, but the buyer remains the statutory withholding agent. Put responsibilities and instructions in writing.
Electronic payments: what changed in 2025
The federal government announced a move to modernize payments and discontinue routine paper checks. The policy, set by Executive Order 14247, means FIRPTA remittances are expected to be sent electronically after September 30, 2025.
In practice, industry advisories expect FIRPTA deposits to be made through EFTPS or other Treasury systems instead of paper checks. Stewart Title summarizes this shift and its impact on closings involving foreign sellers in its FIRPTA payments update.
What you should do now
- Plan who will make the electronic deposit before closing.
- If the buyer is remitting, confirm EFTPS enrollment early. Enrollment and activation can take days to weeks. The IRS explains timing and options in its EFTPS guidance.
- If enrollment will not be ready, arrange an alternative authorized remitter or same‑day wire option where permitted. Document the plan in settlement instructions.
Financing options for foreign buyers
Many international buyers in Boca Raton pay cash, but financing is available through specialized programs and private banking. Expect higher down payments, more documentation, and different underwriting than standard U.S. loans.
Common loan paths
- Foreign‑national mortgage programs. Lenders and brokers offer programs that accept foreign documentation and sometimes ITINs. Down payments often range from about 20% to 35% or more, depending on use and profile. Rates and fees are typically higher.
- Portfolio lenders and private banks. Relationship‑driven financing for well‑documented assets and income can offer flexibility for high‑net‑worth clients.
- Investor and DSCR loans. If the purchase is strictly for investment, qualification can be based on the property’s income rather than your employment income.
- ITIN loans. Some programs accept an ITIN in lieu of an SSN and rely on bank statements, proof of assets, and reserves.
Documentation and underwriting themes
- Government ID and, where required, visa documentation. Some products require evidence of lawful presence. See general context in this Florida‑focused foreign buyer FAQ.
- Source of funds verification and AML checks. Expect thorough review of asset flows and country‑of‑residence considerations.
- A U.S. bank account is often required for payments and reserves.
- Condo financing can vary by building based on reserves, litigation, and use rules.
Important 2025 change: FHA eligibility
HUD updated FHA rules in 2025. Many non‑permanent residents who previously qualified are no longer eligible for FHA case numbers assigned on or after May 25, 2025. Review the industry summary of HUD’s FHA residency update before assuming FHA is an option.
Local closing costs in Palm Beach County
Florida imposes documentary stamp tax on deeds that is commonly calculated at $0.70 per $100 of consideration. Recording and clerk fees are also part of costs. These are separate from any FIRPTA withholding. For reference, see a Florida recording transmittal resource that outlines typical deed doc stamp rates and recording context for counties, including Palm Beach County here. Confirm exact figures with your closing agent.
A practical closing checklist
Use this quick list to keep your Boca Raton transaction on schedule.
Pre‑offer
- Identify whether the seller is foreign and flag FIRPTA early. Review buyer plans for occupancy to see if residence exceptions could apply. See the IRS overview of FIRPTA.
- Decide on cash or financing. If financing, confirm your lender supports foreign‑national borrowers and timelines.
- If closing after September 30, 2025, decide who will remit FIRPTA electronically. Start EFTPS enrollment or secure an alternative remitter. See EFTPS timing guidance.
Under contract
- If the seller is not foreign, obtain a completed Form W‑9 certifying non‑foreign status to avoid withholding. If the seller is foreign, plan for withholding.
- If the seller will seek a reduced withholding certificate, file Form 8288‑B immediately. The IRS generally acts within about 90 days. Review the withholding certificate process and allow time for any needed ITIN.
Closing day
- Calculate the correct rate: 15% standard, or the residence exceptions of 0% or 10% where eligible. Follow the Form 8288 instructions.
- Remit electronically and file Form 8288 with Form 8288‑A within the deadline. Stewart’s summary of the electronic shift is a helpful reference here.
After closing
- The IRS sends the stamped 8288‑A Copy B to the seller after processing. The seller uses it to claim credit or a refund on a U.S. tax return. See the Form 8288 instructions for details.
Ready to plan your Boca Raton transaction with clarity and precision? Reach out to Illustrated Properties Palm Beach for discreet, finance‑first guidance on foreign buyer financing, FIRPTA timelines, and a smooth closing.
FAQs
What is FIRPTA and how much is withheld in Boca Raton sales?
- FIRPTA requires buyers to withhold and remit tax when a foreign person sells U.S. real property; the general rate is 15%, with residence exceptions of 0% up to $300,000, 10% for $300,000 to $1,000,000, and 15% above $1,000,000, per the IRS instructions.
How do the 2025 electronic payment rules affect my FIRPTA closing?
- After September 30, 2025, FIRPTA deposits are expected to be made electronically to the IRS, aligning with Executive Order 14247 and industry guidance; plan EFTPS enrollment or an authorized remitter in advance.
What financing options exist for non‑U.S. buyers in Boca Raton?
- Common paths include foreign‑national mortgage programs, private bank or portfolio loans, DSCR investor loans, and ITIN‑based programs, each with higher down payment and documentation requirements than standard U.S. loans.
Can a foreign seller reduce or avoid FIRPTA withholding?
- Possibly; the seller can apply for a withholding certificate with Form 8288‑B, and the IRS generally acts on a complete application in about 90 days, per IRS guidance.
What changed with FHA loans for non‑permanent residents in 2025?
- HUD’s 2025 update removed eligibility for many non‑permanent residents for FHA case numbers assigned on or after May 25, 2025; see the industry summary from ICBA.
