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Buying real estate in the United States, and in this case in Miami, Florida, offers significant advantages, particularly from the tax perspective. Thanks to the treaty signed between France and the United States in 1994, and subsequently amended in 2004 and 2009, there is no double taxation. In practical terms, taxes related to your investment are paid in the United States, not in France.
Regarding local taxes, rental income is taxed at a rate of approximately 38% to 39%. However, before reaching this amount, numerous expenses are deductible. For a condo for example, monthly maintenance costs, property taxes — which is particularly advantageous as one tax offsets another —and certain expenses related to property management can be deducted. Airfare is also deductible, up to a limit of one round trip per year per owner.
But the most significant deduction remains depreciation : residential property is depreciated over 27.5 years. With all these mechanisms, the actual tax burden becomes very low, sometimes almost zero. In practice, the main expense remains the accountant’s fees for preparing your tax return 🙂
A question that often comes up with my clients is : should you buy in your own name or through a company ? From a tax perspective, the difference isn’t significant. The main advantage of buying through a company lies in the legal protection : liability is then limited to the value of the property.
