Buying Property in Miami
I. PURCHASE OF THE PROPERTY
To buy a property in Florida for investment purposes, the non-resident (ie the natural person not in possession of a green card) or the foreigner who is not a U.S.A. citizen is strongly advised to set up an American company. This company avoids the fact that at the time of resale of the property, the natural person investor is subject to a withholding tax of 15% on the resale price of the property. Furthermore, the American company offers considerable tax advantages on the possible rental income that the building produces.
For the creation of a company under US law it is necessary to contact a lawyer. Normally, for the first two years, we recommend an LLC (limited liability company), ie a company similar to the Srl. Unlike the Italian counterpart, this company offers high advantages of a fiscal nature and a certain flexibility in terms of establishment and management. For the creation of an LLC, an Article of Organization, similar to our "deed of incorporation", must be filed with the Secretary of State, Division of Corporations. Subsequently, an Operating Agreement must be signed, the content of which is comparable to the "statute" of an Italian capital company. The LLC does not require payment of capital and maintenance costs are almost zero.
To simplify the activities related to the purchase of the property, it is preferable that the lawyer is included in the structure of the company as Manager or Secretary (secretary). In this way, if the investor is not physically present, the lawyer can carry out all the activities related to the purchase of the real estate property.
Once the company is established, the EIN (company tax code) must be obtained. With this EIN, the company will be able to open the relevant bank account and be ready for purchase.
III. PURCHASE OF THE PROPERTY
The company is therefore ready to make a purchase offer for the property. The investor will then have to go to the selected location and view the various properties. Once the property of choice has been selected, the investor, through the company, can formulate an offer with the simultaneous payment of 10% (or less amount) of the purchase price to the escrow current account of his lawyer.
From the moment of acceptance of the contract by the seller, normally, the buyer has about 15 days to withdraw from it and obtain the return of the deposit (NB: the lawyer will have to verify that this clause is included in the purchase offer) .
Subsequently, once the offer has been accepted by the seller, the following activities of a purely legal nature will be performed:
1) Application to the Condominium (the condominium must accept the purchaser and simultaneously issue a waiver of the right of pre-emption on the purchase of the property).
2) Research on the Title of Property and Insurance on the Title of Property.
Once the above activities have been carried out, the deed is reached. The operations strictly related to the deed usually take between 30 and 45 minutes. The buyer pays the purchase price and receives the ownership of the property in exchange.