Florida Property Ownership Law Upheld For Chinese Citizens

A federal appeals court ruling on November 4, 2025, cleared the way for Florida to enforce restrictions on property purchases by Chinese citizens. The 2-1 ruling by the 11th U.S. Circuit Court of Appeals upheld Florida’s 2023 law, rejecting claims that it violates federal law or discriminates based on national origin.

The decision affects how Chinese nationals who are domiciled in China can acquire Florida real estate. For developers, brokers and property managers working in Florida’s competitive markets, understanding these ownership restrictions has become essential to compliance and deal structuring.

What The Law Actually Restricts

Florida’s 2023 legislation prohibits individuals domiciled in China who are not U.S. citizens or green card holders from purchasing real estate or land in the state. The law does allow limited exceptions. Non-tourist visa holders and asylum recipients may purchase a single residential property up to two acres, provided the property sits at least five miles from any military installation.

The court found that four Chinese citizens who challenged the law lacked legal standing to sue because they have lived in Florida for years and are not domiciled in China. The law only applies to people domiciled in China.

Circuit Judge Robert Luck wrote that national, individual, land and food security concerns motivated the law’s enactment. Governor Ron DeSantis said when he signed the law in 2023 that it would help protect Americans from the influence of the Chinese Communist Party.

How This Affects Florida Real Estate Professionals

The ruling may encourage other states to adopt similar restrictions. Lawmakers in more than 30 states have passed or introduced bills restricting foreign property ownership. These laws, once common but out of favor for a century, appear to be making a return.

For real estate professionals conducting transactions in Florida, the ruling creates new due diligence requirements. Verifying buyer citizenship status, domicile location and visa classifications has become part of the compliance process for property sales.

Title companies and closing attorneys need to confirm that buyers meet the law’s requirements. The legislation requires Chinese citizens to register their properties with the state, adding another layer of administrative complexity to transactions.

Tax And Structuring Considerations

Foreign ownership restrictions affect how real estate deals get structured. Buyers who fall under the law’s restrictions may need to explore alternative ownership arrangements, including corporate entities or trust structures that comply with Florida regulations.

These ownership structures carry different tax implications. Understanding how federal and state tax rules apply to various ownership models helps investors make informed decisions about property acquisition strategies.

The law also requires registration of properties owned by Chinese citizens with the state. This reporting requirement creates ongoing compliance obligations for property owners and their advisors.

For investors and developers working on projects that previously attracted foreign capital, these restrictions may shift funding sources. Understanding how to structure deals that comply with the new requirements while still achieving investment goals requires careful planning.

National Implications For Real Estate Markets

The 11th Circuit ruling represents a significant shift in how states regulate foreign property ownership. Circuit Judge Charles Wilson dissented, arguing that regulation of foreign investment is a federal arena and Florida’s law was preempted by federal law.

The split decision suggests that legal challenges to similar laws in other states may continue. Real estate professionals operating across multiple states need to track how these restrictions develop and vary by location.

Florida’s market has historically attracted substantial foreign investment in both residential and commercial sectors. How these restrictions affect property values, transaction volumes and market dynamics in affected areas remains to be seen.

What Real Estate Professionals Should Do Now

Real estate professionals should review their transaction processes to ensure compliance with Florida’s property ownership restrictions. This includes adding verification steps for buyer qualifications and understanding the registration requirements for properties owned by Chinese citizens.

Developers and property managers should assess how these restrictions might affect their target buyer pools and marketing strategies. Projects that previously attracted foreign investment may need to adjust their capital-raising approaches.

Legal and tax advisors should be consulted early in transaction planning to address ownership structure questions and ensure compliance with both state and federal requirements. 

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