If you have foreign financial accounts with a combined value exceeding $10,000 at any point during the year, you must file an FBAR (FinCEN 114) annually. Miami residents with accounts in Latin America, Europe, or elsewhere are commonly required to file. Non-willful penalties are capped rather than open-ended: the statutory maximum is $10,000, inflation-adjusted to $16,536 for penalties assessed on or after January 17, 2025 — and under the Supreme Court's decision in Bittner v. United States, that cap applies once per annual report, not per account. No penalty applies at all where the failure was due to reasonable cause and the account was otherwise properly reported. Willful violations are far more severe. We handle all FBAR filings.

FATCA (Foreign Account Tax Compliance Act) requires US persons to report foreign financial assets above certain thresholds on Form 8938. Miami residents with accounts or investments outside the US commonly trigger this. FATCA reporting is separate from FBAR and the thresholds differ. We ensure both are filed correctly.

FIRPTA (Foreign Investment in Real Property Tax Act) requires 15% withholding on the gross sales price when a foreign person sells US real estate. Planning before the sale can reduce or eliminate this withholding through proper structuring. We advise foreign national investors throughout the Miami market.

Florida's no-income-tax advantage is real, but it doesn't eliminate federal obligations. High earners owe federal rates up to 37%, plus the 3.8% net investment income tax on passive income. International reporting requirements — FBAR, FATCA, PFIC — add complexity for Miami's global residents, and the penalties for getting them wrong are steep. For most clients at that level, proactive planning is worth considerably more than it costs.