The article discusses a new Florida law restricting foreigners from certain countries from owning or buying real estate in Florida. On May 8, 2023, Florida Governor Ron DeSantis signed into law a new Florida Senate Bill, SB 264, Interests of Foreign Countries restricting foreign ownership and purchases of real estate in Florida by foreign nationals from certain countries of concern. The new Florida bill not only affects owners of real estate in Florida but also curtails foreign investment to the state and the restrictions apply to commercial real estate, as well as residential real estate and land.
The new Florida law which is set to become effective on July 1, 2023 restricts property ownership in Florida by foreign nationals from the following countries:
- China
- Venezuela
- Syria
- Russia
- Iran
- North Korea
- Cuba
The bill prohibits individuals from the above countries from owning agricultural land anywhere in the state of Florida and forbids ownership in any real estate property which is located within 10 miles of a military base or other critical infrastructure, such as a nuclear power plant.
However, the new law does not affect citizens of the countries of concern who also hold a U.S. citizenship or are lawful permanent residents (green card holders). Below we summarize the different provisions of the bill and discuss their application in practice.
What are the ownership restrictions?
Subject to the exemptions below, there are two restrictions on property ownership by citizens of China, Venezuela, Syria, Russia, Iran, North Korea, and Cuba:
- Restriction on foreign ownership of agricultural land in Florida. The first restriction is on owning agricultural land in Florida. A citizen of the above countries cannot own, directly or indirectly through a company, agricultural land or any interest in such land, other than a small indirect interest, which is generally defined as being a less than a 5% ownership of the company owning the land.
- Restriction on foreign ownership of property in Florida on or within 10 miles of a military base or critical infrastructure. The second restriction is on owning property near a military base or critical infrastructure. A foreign national of China, Venezuela, Syria, Russia, Iran, North Korea, and Cuba is not allowed to own, directly or indirectly, or have a controlling interest in real property on or within 10 miles of any military installation or critical infrastructure facility in Florida. Examples of critical infrastructure include chemical manufacturing facilities, oil refineries, power plants, data centers, seaports and airports.
How is the new Florida law enforced?
As of July 1, 2023, agricultural land and property buyers are required to provide an affidavit attesting that the buyer is not a foreign national from China, Venezuela, Syria, Russia, Iran, North Korea, or Cuba.
Are there any exemptions?
There is a limited exception from the ownership restrictions for the purchase of one residential property by a national of China, Venezuela, Syria, Russia, Iran, North Korea, or Cuba (directly in their own name) of up to 2 acres, as long as it is not on or within 5 miles of any military installation in the state and the purchaser possesses a valid non-tourist U.S. visa or was granted asylum. Real property that is used for diplomatic purposes is also exempted.
There is another exemption for agricultural land owned before July 1, 2023. In that case foreign nationals from China, Venezuela, Syria, Russia, Iran, North Korea, and Cuba who wish to continue to own their land must complete registration with the Florida state. If the foreign nationals in question fail to register in a timely fashion they will be subject to a $1,000 per day penalty.
What are the penalties for noncompliance?
If natural persons or companies fail to comply with the new law, they can be subject to both criminal and civil penalties. Civil penalties can include confiscation of property or land. Criminal charges can be levied against anyone for selling knowingly agricultural land or real property on or around a military base or critical infrastructure to a national of a country of concern listed above, and it is a misdemeanor of the second degree as defined by state law.
Are there any further restrictions or exemptions for Chinese?
Yes, citizens of China who reside in China, members of the Chinese Communist Party and government officials, as well as Chinese businesses are prohibited from purchasing or acquiring any interest in real property in the state of Florida. The restrictions do not apply to Chinese who are also U.S. citizens or green card holders.
Further, the new law provides a limited exception from the ownership restrictions for the purchase of one residential property by a Chinese national (directly in their own name) of up to 2 acres, and the purchaser possesses a valid non-tourist U.S. visa or was granted asylum. For Chinese nationals, this residential property exemption also applies to property outside the 10 miles of both any military installation and any critical infrastructure facility. Real property that is used for diplomatic purposes is also exempted.
Do the restrictions affect international students?
Yes, the restrictions apply to nationals from China, Venezuela, Syria, Russia, Iran, North Korea, or Cuba who come to study in the United States with an F-1 student visa.
In addition to international students, nationals from China, Venezuela, Syria, Russia, Iran, North Korea, and Cuba on other visas and immigration statuses in the United States are also affected. That includes individuals in H or L status, and asylum seekers.
However, regarding Chinese nationals, subject to the limited exception for ownership of residential property, the additional China restrictions do not apply to Chinese students or other valid U.S. visa holders, unless they are members of the Chinese Communist Party or government officials.
For questions regarding how the new Florida law applies to you or your spouse is a US citizen or green card holder, contact our business and immigration lawyers in Miami, Florida USA or schedule a consultation to discuss your situation.
Malescu Law P.A. – Business & Immigration Lawyers
