Can Canadians Buy Equestrian Property in Florida?
Every winter, many Ontario riders head south to Wellington and Ocala. After a few seasons of renting stalls and houses, the question usually comes up: should we just buy?
The short answer is yes, Canadians can buy property in Florida, including horse farms and equestrian estates. The longer answer is that buying across the border involves tax, financing and legal questions that are very different from buying at home. Here's what to think about first.
Can Canadians legally own Florida real estate?
Yes. There's no general requirement to be a U.S. citizen or resident to buy property in Florida.
Florida did pass a law in 2023 (SB 264) restricting property purchases by people and entities connected to certain "foreign countries of concern." Those countries are China, Russia, Iran, North Korea, Cuba, Venezuela's Maduro regime and Syria. Canada is not on that list. The law includes restrictions on agricultural land, so if you hold other citizenships or are buying through a company with foreign ownership, confirm with a Florida real estate lawyer.
How will you own it?
One of the first decisions is ownership structure: personally, jointly with a spouse, through a trust, or through a company. Each has different tax and estate consequences in both countries. This is the one decision I always recommend making with a cross-border tax advisor before you make an offer.
Taxes Canadians should understand
These are the main areas to raise with a cross-border tax professional. This article doesn't give tax advice.
U.S. estate tax. U.S. real estate owned by a Canadian can be exposed to U.S. estate tax when the owner dies. The Canada-U.S. tax treaty provides relief, which depends on the size of your worldwide estate. Exemption levels have changed recently, so get current advice.
Selling later (FIRPTA). When a non-U.S. person sells U.S. real estate, the buyer is generally required to withhold a percentage of the sale price for the IRS. The standard rate is 15%, with reduced rates or exemptions in some situations. You can usually recover any excess by filing a U.S. return.
Renting it out. If you rent the property while you're not using it, there are U.S. and Canadian filing obligations. You have a choice in how rental income is taxed.
Canadian reporting. Canadians who hold foreign property above certain thresholds have reporting obligations to the CRA.
Property taxes. Florida property taxes are set by the county. Florida's homestead exemption is generally for permanent Florida residents. Some working farms may qualify for agricultural classification; confirm with the county property appraiser.
Time spent in the U.S.
Owning a Florida property doesn't change how long you're allowed to stay in the U.S. If you spend significant time there, also ask your tax advisor whether you could be treated as a U.S. resident for tax purposes, and what to file to avoid it.
Financing a Florida horse farm
Canadians generally have three routes:
Paying cash, often the simplest.
Borrowing in Canada against Canadian assets.
A U.S. mortgage. Some Canadian banks offer these through U.S. affiliates, and some U.S. lenders lend to Canadians. Expect larger down payments and more documentation than at home.
Get pre-qualified before you start viewing farms. Equestrian properties can sell quickly in peak season.
Equestrian due diligence
Beyond the standard home inspection, a Florida horse farm calls for checks you may not think of in Ontario:
barn and arena construction, and readiness for hurricanes;
drainage and flood zone status, which affect both usability and insurance;
well, septic and irrigation systems;
footing condition in rings and arenas;
local zoning and any homeowners' association or equestrian community rules; and
insurance availability and cost, which can vary significantly in Florida.
Wellington or Ocala?
Both are major equestrian destinations, with very different characters and price points. Wellington is closely tied to the winter show season, while Ocala is known for horse farms and breeding. I'll compare them in more detail in a future article.
Frequently asked questions
Can a Canadian buy a house in Florida without being a U.S. resident?
Yes. Canadian citizens can generally buy Florida property without U.S. residency. Restrictions under Florida's 2023 law apply to buyers connected to specific countries, and Canada is not one of them.
Can Canadians get a mortgage in Florida?
Yes. Options include U.S. affiliates of some Canadian banks and some U.S. lenders. Down payment and documentation requirements are usually higher than for Canadian mortgages.
Do Canadians pay U.S. estate tax on Florida property?
They can be exposed to it. The Canada-U.S. tax treaty provides relief that depends on the size of your worldwide estate. Speak with a cross-border tax advisor.
What is FIRPTA?
A U.S. rule that generally requires the buyer to withhold part of the sale price when a non-U.S. person sells U.S. real estate. The standard rate is 15%, with reduced rates or exemptions in certain cases.
Should I buy personally or through a company?
It depends on your estate, tax and liability situation. Decide with a cross-border tax advisor before you make an offer.
Planning a Florida equestrian purchase?
I work with Ontario equestrian families thinking about a base in Florida. I'm happy to help you think through the decision and connect you with experienced Florida professionals, from licensed Florida real estate agents to lawyers, lenders and cross-border tax advisors.
Sources
Natasha Euteneier, Real Estate Salesperson
NSE Real Estate Advisors & Family Office
Keller Williams Advantage Realty, Brokerage
This article is general information only and is not legal, tax or financial advice. Natasha is licensed in Ontario; Florida transactions are handled with licensed Florida professionals. Consult qualified professionals about your situation.