Investing in a property in Florida includes several advantages.
Wealth tax – Foreign investment properties make part of the Wealth tax basis in France, according to the same rules applied to French investment properties. More especially, loans subscribed in foreign countries for property investments will be deductible from the taxable basis.
Income tax / Capital gain tax – A fiscal agreement between France and the United States has been signed. According to this agreement, incomes from investment properties (including resale gain taxes) are not taxable in France: the only fiscal tax due will be paid in the United States (federal and local taxes). However, there is a complicated rule, the “real rate rule.” France reserves the right to consider American income to calculate the French income rate, meaning that American income is not taxable in France, but it is considered to increase French tax progressiveness effects. Nevertheless, as long as your American income is weak (regarding deduction of the loans), this rule may not get any impact.
This information is just that, information, and should not be taken as legal council. Please consult with your tax attorney or CPA (Certified Public Accountant)