Selling Florida Property As a Canadian

Where the market stands for Canadian sellers

A lot of Canadian-owned Florida property is condos and villas in coastal and retirement markets, and that segment has been the soft part of the state. Zillow's Florida condo index peaked at $313,647 in December 2023 and is now $262,592, about 16.3% lower. All homes statewide are 6.9% off their June 2024 peak. Over five years, the all-homes index is still up 18.6%, so owners who bought before 2021 often have gains in US dollars, while 2022 and 2023 buyers may be near break-even or below.

Condo buyers also look closely at milestone inspections, SIRS reserves and special assessments. If your association has a large assessment voted, it affects both your price and who can get a loan. Ask the association for current documents before you list, so the price reflects them from day one.

FIRPTA for Canadian sellers

The Canada-US tax treaty does not switch off FIRPTA. If you are a nonresident alien for US tax purposes, the buyer withholds 15% of the gross price at closing. Two buyer-residence exceptions lower it: 0% when the price is $300,000 or less and the buyer will live in the home, and 10% up to $1,000,000 under the same condition. On a condo at the statewide $262,592, a qualifying owner-occupant buyer means nothing is withheld; any other buyer means $39,388.80 is held back.

Snowbirds who spend long winters in Florida should check one thing first. If you met the IRS substantial presence test and did not file Form 8840 to claim closer connection to Canada, you could be treated as a US resident for that year, which changes how the sale is taxed and whether FIRPTA applies. Sort that out with a cross-border tax advisor before signing the non-foreign certification or the contract.

If your expected US tax is well below the withholding, you can apply for a withholding certificate on Form 8288-B before closing. You will need a US taxpayer ID; most Canadians apply for an ITIN with Form W-7 at the same time.

The US side: filing to settle the tax

FIRPTA money is a deposit. You still file a US nonresident return (Form 1040-NR) for the year of the sale, report the gain, and claim the withheld amount as a payment. If you owe less than was withheld, the IRS refunds the balance. If you sold at a loss, filing is the only way to get the withholding back.

Your US gain is figured in US dollars: sale price minus selling costs, minus what you paid plus closing costs and capital improvements. Keep your original closing statement and receipts for renovations, roofs and new windows. Florida has no state income tax, so the federal return is the only US tax filing for the sale.

Property taxes: what you owe and what the buyer will see

Canadian owners who are not permanent Florida residents do not get the homestead exemption. Their assessed value is capped at 10% annual increases for non-school levies, which still leaves many long-held properties assessed below market. At closing, the property tax for the current year is prorated: Florida bills in November for the whole calendar year, so you credit the buyer for your days of ownership. After the sale, the assessment resets to market value under the new owner, and a buyer who will live there full-time may claim homestead. Buyers' agents usually warn their clients that your tax bill is not their tax bill. A statutory property tax disclosure in the contract says the same thing, so a low bill on your listing will not mislead anyone, but it also will not help your price as much as you might expect.

The Canadian side: same sale, counted in Canadian dollars

Canadian residents are taxed on worldwide income, so the Florida sale goes on your Canadian return too. The gain is calculated in Canadian dollars, converting your purchase cost at the exchange rate when you bought and your proceeds at the rate when you sold. That means the Canadian gain can be larger or smaller than the US gain, depending on how the exchange rate moved while you owned the property. A sale that breaks even in US dollars can still show a gain in Canada if the US dollar strengthened.

Canada generally lets you claim a foreign tax credit for US tax paid on the same gain, which reduces double taxation. The credit has limits and interacts with provincial tax. Whether a Florida home could ever be designated as a principal residence for Canadian purposes is a narrow, fact-specific question, so ask your accountant rather than assuming. This isn't legal or tax advice; a cross-border CPA should prepare or review both returns.

Closing from Canada without flying down

Most Canadian sellers never attend the closing. The title company or closing attorney sends a closing package, you sign, and the funds are wired to you. A few points to plan for:

• Deed signing. Florida deeds need two witnesses and a notary. Your closing agent will say which method works for your file: a US consulate, a Canadian notary with the right authentication, or Florida's remote online notarization.
• Power of attorney. If you will be unavailable, a Florida-compliant power of attorney can let someone sign for you. The title company must approve it in advance.
• Wiring funds. Proceeds arrive in US dollars. Decide whether to keep them in a US account or convert, and confirm wiring instructions by phone, since wire fraud targets real estate closings.
• Seller costs. Deed doc stamps of $0.70 per $100 of price, $1,838.14 on a $262,592 condo, the property tax proration (Florida taxes are paid in arrears), estoppel fees if there is an association, and the owner's title policy where county custom puts it on the seller.

Getting the property ready while you are in Canada

Selling from a distance works if someone local can open the door. Arrange a key holder or lockbox, keep the AC running to control humidity, and keep insurance in force until closing. Buyers will ask for the roof age, a wind mitigation report and, for older properties, a 4-point inspection. Florida's disclosure duty covers known material defects that are not readily observable, and since October 1, 2025 residential sellers also give a written flood disclosure, so check your records for any water or storm claims before filling it out. Furnished condos are common in snowbird markets; list what conveys in the contract so nothing is argued about at the walk-through.