Miami Closing Costs for Foreign Buyers: A Full Breakdown

Closing costs in Miami follow Florida law, Miami-Dade custom, and—for foreign buyers—a set of additional federal obligations that most domestic buyers never encounter. Knowing the full list before you make an offer helps you budget accurately and avoids surprises the day you wire funds.

Published October 12, 2026

What the seller typically covers in Miami-Dade

By long-standing custom in Miami-Dade County—not by law—the seller covers several significant closing line items. These reduce the buyer's out-of-pocket costs at closing but are factored into any price negotiation.

Documentary stamp tax on the deed

Florida imposes a documentary stamp tax on the transfer of real property under F.S. § 201.02. The base rate is $0.70 per $100 of consideration—or $7.00 per $1,000 of purchase price. In Miami-Dade County, an additional surtax applies under F.S. § 201.031; confirm the current combined rate with your closing attorney or title agent, as it differs from the rest of Florida. On a $600,000 purchase, the base stamp alone is $4,200. By Miami-Dade custom, the seller pays this cost.

Owner's title insurance policy

Florida title insurance rates are set by the state. The owner's policy protects the buyer's ownership interest against prior liens, defects in title, or fraud. In Miami-Dade, the seller customarily pays for the owner's title insurance policy. Because the seller selects and pays for it, the seller typically also selects the title company—though buyers can negotiate this. On a $600,000 purchase, the owner's policy is roughly $3,500 (rates decrease on a per-thousand basis at higher values).

Real estate commission

The listing broker's compensation is a seller expense. Post-August 2024 practice requires buyers and buyer's agents to have a signed compensation agreement in place before touring, which means buyer's agent compensation may be structured separately. Confirm with your agent how compensation is handled in your specific transaction.

HOA or condo association estoppel fee

If the property is in a homeowners or condominium association, the seller pays to obtain an estoppel certificate—the official statement from the association of all amounts owed. This fee varies by association but is the seller's obligation under Florida law.

What the buyer pays at closing

Intangible tax on a new mortgage

If you are financing the purchase, Florida imposes an intangible personal property tax on new mortgage notes at $2.00 per $1,000 of the mortgage amount (0.2%). On a $400,000 mortgage, this is $800. This is a buyer cost, not negotiable away.

Documentary stamp tax on the mortgage note

Florida also imposes a separate documentary stamp tax on the mortgage note itself at $0.35 per $100 of the note amount. On a $400,000 mortgage, this is $1,400. This is also a buyer cost.

Lender's title insurance policy

Any lender providing a mortgage will require a lender's title insurance policy. This protects only the lender's interest (not yours—that is the owner's policy), and it is a buyer cost. Lender's policies are issued simultaneously with owner's policies at a discounted simultaneous issue rate; the incremental cost is typically a few hundred dollars above the owner's policy premium.

Recording fees

The deed and mortgage must be recorded with the Miami-Dade Clerk of Courts. Recording fees are modest—typically $10–$25 for the first page of each document plus a per-page fee after—but are a buyer responsibility.

HOA or condo association application and transfer fees

Most Miami condo associations require an application, background check, and board approval before a sale closes. Application fees, move-in fees, and transfer fees vary by building and can range from a few hundred to several thousand dollars. Ask the listing agent for the specific association's fee schedule before you sign a contract—some buildings charge $3,000–$5,000 in combined fees.

Inspection and due diligence costs

Home inspection, roof inspection, radon test, mold assessment, and survey (if applicable) are buyer costs paid before or at closing. Expect $500–$1,500 for a standard condo inspection; a single-family home inspection with roof and pool is typically $800–$2,000.

Pre-paid items and escrow deposits

Your lender will require pre-paid items and escrow deposits at closing that are not closing costs in the traditional sense—you are paying them ahead of time rather than paying more overall. They still require cash at closing and must appear in your budget.

Homeowner's insurance premium (first year or first 12 months)

The lender requires proof of paid-up hazard insurance before funding. In South Florida, annual premiums for a condo unit have increased significantly since 2022; budget at least $2,000–$5,000 for a condo depending on building age, size, and coverage type. Single-family homes in flood zones cost more.

Flood insurance

Properties in FEMA Special Flood Hazard Areas (AE zones) require flood insurance as a condition of any federally-backed mortgage. See the separate discussion of AE vs. X flood zones in Miami for specifics on what this means for coverage requirements. The first-year premium is due at closing.

Property tax escrow and pre-paid interest

Lenders typically collect two to three months of property taxes and homeowner's insurance into escrow at closing as a reserve. Pre-paid interest covers the days from closing to the end of the month. These amounts appear on your Closing Disclosure but represent money held for future bills, not a direct cost.

Foreign buyer-specific considerations

FIRPTA withholding when the seller is also foreign

The Foreign Investment in Real Property Tax Act (FIRPTA) requires that when a foreign person sells US real estate, a portion of the sales price is withheld at closing and remitted to the IRS. This is the seller's income tax obligation—but the buyer is the withholding agent under the law and is responsible for making sure the withholding happens correctly. If you buy from another foreign seller and the withholding is not handled, the IRS can pursue the buyer for the unpaid amount.

The standard FIRPTA withholding rate is 15% of the gross sales price. For a $600,000 purchase from a foreign seller, $90,000 would be withheld from the seller's proceeds and remitted to the IRS via Form 8288/8288-A. This does not increase your purchase price, but it is an obligation you carry as buyer. Your closing attorney or title company should handle the mechanics if the seller is identified as a foreign person.

If the seller is a US person (citizen, permanent resident, or US-domiciled entity), FIRPTA withholding does not apply to that transaction.

International wire transfer fees and currency exchange

Most Miami closings require funds to arrive by domestic wire. Sending from a foreign bank account involves international SWIFT transfers, correspondent bank fees, and currency exchange if your funds are not in US dollars. International wires typically cost $25–$75 in outgoing fees from your bank, plus potential receiving fees on the US side. Currency exchange spreads vary by bank and by amount; for large sums, a dedicated foreign exchange service sometimes offers more competitive rates than retail bank exchange windows.

Read the guide to wiring funds internationally for a Miami closing for the full process, including how to avoid wire fraud and what to confirm before you send.

Attorney fees

Florida does not require an attorney to conduct a real estate closing—a licensed title company can handle it. However, foreign buyers typically benefit from independent legal review of the purchase contract, the condo documents, and the closing statement, particularly because the tax implications of the transaction (FIRPTA, potential estate tax, and home-country reporting obligations) require professional judgment that a title company does not provide. Attorney fees for a residential closing review typically run $500–$2,500 depending on complexity.

Sample cost estimate for a $600,000 condo purchase with mortgage

The numbers below are illustrative. Actual costs depend on your lender, the specific building, and how the contract is negotiated.

Intangible tax on $400,000 mortgage (0.2%)

$800

Doc stamp on mortgage note ($0.35/$100)

$1,400

Lender's title insurance (simultaneous issue rate)

~$400

Recording fees

~$100

HOA application and transfer fees (varies widely by building)

$500–$3,000

Inspection costs

$700–$1,500

First year homeowner's insurance (condo)

$2,500–$5,000

Escrow deposit for taxes and insurance reserves

$2,000–$5,000

International wire fees and currency exchange (if applicable)

$50–$500+

Attorney fee (if engaged)

$500–$2,500

A foreign buyer putting 30% down on a $600,000 condo should budget roughly 3%–5% of the purchase price for total closing-side costs (buyer items plus pre-paids), on top of the down payment. The seller covers the documentary stamp on the deed and the owner's title policy, which are the two largest transfer costs.

Questions people actually ask

Does the seller always pay the documentary stamp tax in Florida?

By custom in Miami-Dade, yes—but not by law. In some other Florida counties, the buyer pays. The contract governs who pays what, and both parties can negotiate around the customary allocation. Read your contract before assuming the default applies.

Can I use a foreign bank account to pay closing costs?

Closing funds typically must arrive by domestic wire to a US title company trust account. You can wire from a foreign bank, but you will need your bank to initiate an international SWIFT wire in US dollars to the US routing and account numbers the title company provides. Confirm the exact instructions with your title company at least five business days before closing to allow time for any transfer delays or compliance holds.

Does Florida have a transfer tax on top of the documentary stamp?

The documentary stamp tax is Florida's real estate transfer tax. There is no separate state-level transfer tax. Miami-Dade does impose an additional surtax on the documentary stamp under F.S. § 201.031—confirm the current combined rate with your closing attorney, as it is higher than in most other Florida counties.

Do I owe anything to my home country when I buy in Miami?

US tax law does not restrict foreign nationals from buying US property. However, your home country may have its own reporting requirements for foreign real estate purchases, foreign currency transfers, or new assets. This varies by country and is outside the scope of Florida closing procedures—consult an attorney or accountant licensed in your home country.

Stefania Riverin, Licensed Real Estate Sales Associate · FL SL3620067 · Brokered by NB Elite Realty · 1101 Brickell Ave, Miami, FL 33131 · Equal Housing Opportunity. This post is general information about typical closing costs for real estate purchases in Miami-Dade County and is not legal, tax, or financial advice. Costs vary by transaction; confirm all figures with your closing attorney and lender before closing.