Florida’s Foreign Buyer Restrictions: What They Mean for Southwest Florida Real Estate
Florida has made national headlines for tightening rules around certain foreign buyers purchasing property. If you’re a homeowner thinking about selling in Fort Myers, Cape Coral, Lehigh Acres, or the surrounding Southwest Florida market, the practical question is simple:
Will this reduce demand, impact pricing, or change who can buy my home?
Here’s what’s actually happening, what the law covers (and doesn’t), and what it may mean for our local market.
What People Mean by the “Foreign Buyer Ban” in Florida
Florida’s law is not a blanket ban on all international buyers. The most discussed restrictions stem from Florida Senate Bill 264 (SB 264), effective July 1, 2023.
A Congressional Research Service summary explains that SB 264 creates two sets of land ownership restrictions: restrictions on “foreign principals” tied to certain “countries of concern,” and limits on acquiring specific types/locations of property (e.g., agricultural land and property near military installations/critical infrastructure).
Separately, enforcement has also introduced additional closing compliance, including a buyer affidavit framework adopted through Florida administrative rules.
The China-Focused Provision That Gets the Most Attention
In late 2025, Reuters reported that the 11th U.S. Circuit Court of Appeals allowed Florida to enforce a provision restricting purchases by individuals “domiciled” in China who are not U.S. citizens or green card holders, while also describing limited exceptions for certain buyers (e.g., some non-tourist visa holders/asylum recipients purchasing one residential property under specific conditions and distance requirements).
The ACLU’s case page on Shen v. Simpson also summarizes the litigation history and notes the appeals court’s focus on standing (rather than a full merits ruling on the purchase restriction), while discussing how “domicile” is analyzed under Florida law.
Why This Matters in Florida (Even Outside Miami)
International buyers are a meaningful segment in Florida, especially because many purchases are cash and often tied to second homes and rentals.
Florida Realtors’ 2025 international profile reports:
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International buyer purchases increased by 50% year-over-year (Aug 2024–Jul 2025 period), with dollar volume rising to $10.4B.
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Cape Coral–Fort Myers accounts for 8% of Florida’s international buyer destinations (and Naples–Immokalee–Marco Island is 6%).
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About 70% of respondents with international clients had at least one client who ultimately chose not to buy a Florida property, commonly due to price and rising condo fees.
At the national level, NAR’s 2025 report notes that foreign buyers’ purchases represent a small share of overall U.S. existing-home sales. Still, they are more likely to pay cash and buy for vacation/rental use, factors that can matter in Florida.
How These Restrictions Could Affect the Florida Market
1) A narrower buyer pool in certain situations
For the majority of Southwest Florida listings, the buyer pool remains broad. But for properties that tend to attract international demand, certain waterfront, seasonal, or investment-oriented segments, any added friction can reduce the number of ready, qualified buyers.
2) More transaction “friction” at the closing table
Even when the buyer is fully eligible, SB 264-related compliance has added additional diligence steps, including buyer affidavits.
Practical impact: timelines can be tighter, documentation requests can come earlier, and having an experienced lender/title partner matters more.
3) Market impact will vary by location and price point
Miami and some luxury condo markets typically experience the most international demand. Still, Southwest Florida is not immune; Florida Realtors’ destination breakdown confirms that Cape Coral, Fort Myers, and Naples are meaningful international destinations.
4) The “policy uncertainty” effect
Even when laws target a narrow group, headlines can cause hesitation among otherwise qualified international buyers. That can show up as:
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slower decision cycles
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more attorney review
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More cancelled searches before a contract is written
What Sellers in Fort Myers, Cape Coral & Lehigh Acres Should Do Now
If you’re listing this year and want the widest possible buyer pool:
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Price and condition still lead. If your home is move-in ready and priced correctly, demand is strongest regardless of buyer origin.
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Get ahead of closing logistics. Use a title company and agent team that knows the current affidavit/diligence workflow.
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Pre-screen smarter. We can structure offers and timelines to reduce surprises (especially for cash/investor-style transactions).
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Avoid overreacting to headlines. Most buyers in our area are unaffected, but we should be prepared to implement additional compliance steps when relevant.
What International Buyers Should Know
If you’re not a U.S. citizen (or you’re buying through an entity), you should:
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confirm eligibility early (before an offer)
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work with Florida legal counsel familiar with Chapter 692 / SB 264
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expect additional affidavit and documentation steps at closing
Note: This is general information, not legal advice.
Bottom Line
Florida’s “foreign buyer ban” headlines can be misleading. The real story is targeted restrictions + added compliance steps, with impacts that vary by metro area and property type.
For Southwest Florida, the best approach is practical: price right, prep well, and plan for clean execution, so you don’t lose time (or leverage) during contract-to-close.
Elizabeth Steele is a Real Estate Advisor with Realty ONE Group MVP, licensed since 2017, serving Fort Myers, Cape Coral, and Lehigh Acres. She has closed 140+ transactions and helps sellers maximize results with a proven marketing strategy that reduces stress and attracts strong offers. Contact Elizabeth Steele
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