1. Two very different thresholds
US citizens and people domiciled in the US have a large federal estate tax exemption — $15 million per person from 2026. Non-resident non-citizens get an exemption on US-situs assets of only $60,000. Above that, the estate can owe tax at graduated rates up to 40%.
US-situs assets include US real estate and tangible property located in the US, as well as shares of US companies. A $1 million Miami condo owned directly by a non-resident can therefore create a very large tax bill for the heirs.
2. Estate tax treaties
The US has estate and gift tax treaties with a limited number of countries (for example the UK, France, Germany, Japan and several others), and Canada is covered through its income tax treaty. Treaties can raise the exemption or change the rules. There is no such treaty with Russia, Ukraine, Belarus or Kazakhstan.
3. Spouses, mortgages and filing
The unlimited marital deduction applies only when the surviving spouse is a US citizen; otherwise a qualified domestic trust (QDOT) may be needed. For non-residents, non-recourse mortgage debt can reduce the taxable value of the property, while recourse debt is only partly deductible.
The estate files Form 706-NA, generally within nine months of death, and US institutions usually require an IRS transfer certificate before releasing US assets to heirs — which can delay access for months.
4. Common planning approaches
Depending on your country and goals, advisers use holding structures (such as a foreign corporation), specific trust arrangements, life insurance to cover the potential tax, or non-recourse financing. Each has costs and trade-offs — including how the property is taxed when you sell. The key is to decide before the purchase, because transferring the property later can trigger taxes.
This guide is general information, not legal or tax advice. Laws and programs change — confirm details with a Florida attorney and a US tax professional.
