Canadians buying in Florida: how the rebate works across the border
Canadian buyers are a big part of the Florida market, from Pinellas condos to Palm Beach County 55-plus communities. The buyer rebate works the same for them as for anyone else.
Cash buyers
Many Canadians buy for cash. That makes the rebate simple: it is credited against your funds due at closing or paid as a check.
Financing
Canadians can finance through some US lenders or cross-border banks, usually with larger down payments. The usual lender limits on credits apply.
Currency
The rebate is in US dollars. If you converted Canadian dollars to close, keep the rebate in a US account for property taxes and HOA fees rather than converting back and forth.
Tax points to sort out before buying
- When you eventually sell, FIRPTA withholding can apply to foreign sellers.
- Rental income in Florida has US tax filing implications.
- Time spent in the US counts toward the substantial presence test.
A cross-border accountant is worth the fee. The rebate on a typical Florida purchase often covers it.