Guidance For Certain Foreign Nationals Navigating Florida's Restrictions On Real Property Ownership

Late last year, the U.S. Court of Appeals for the Eleventh Circuit issued a long-anticipated decision upholding the constitutionality of a Florida law that restricts foreign ownership of real property. Lewis Brisbois published a December 4, 2025 client alert discussing the decision and its implications for those impacted.

The decision in Shen v. Shen follows more than two years of litigation after four Chinese nationals living in Florida filed a complaint alleging that Florida Senate Bill 264 (codified under Fla. Stat. Ann. §§ 692.201 to 692.205) is unconstitutional and discriminatory and that it violates the Fair Housing Act. The Eleventh Circuit issued a preliminary injunction while the case was pending appeal. To read more about the legal challenges to S.B. 264, see Lewis Brisbois' July 5, 2023 client alert discussing the initial lawsuit and April 2, 2024 client alert discussing the appeal.

On November 4, 2025, the Court ultimately ruled that none of the plaintiffs had legal standing to challenge the purchase restrictions under S.B. 264 because the plaintiffs had purchased property before the law went into effect and were "domiciled" in Florida (even though they did not have permanent immigration status under federal law).

Though it remains to be seen if the plaintiffs will appeal to the U.S. Supreme Court or how the Eleventh Circuit would interpret the law if a plaintiff with standing challenged it on similar grounds, one thing is clear: S.B. 264 is now law in Florida.

S.B. 264 prohibits designated foreign nationals from acquiring certain real property. Lewis Brisbois first reported on S.B. 264 in a May 19, 2023 client alert following the signing into law of the bill. This client alert examines more in depth the restrictions under the law and the limited exceptions.

Restricted Ownership

The Florida law restricts "foreign principals" from, directly or indirectly, owning, having a controlling interest in, or acquiring, by purchase or otherwise, (1) agricultural land, or any interest therein, situated in Florida; and (2) real property on or within 10 miles of any military installation or critical infrastructure facility in Florida. "Foreign principals" includes entities, and subsidiaries of entities, organized under the laws of or having a principal place of business in a "foreign country of concern"; persons who are domiciled in a "foreign country of concern" who are not U.S. citizens or lawful permanent residents; and such entities or persons having a controlling interest in a legal entity or subsidiary formed for the purpose of owning Florida real property. A "foreign country of concern" means China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria. The law, furthermore, prohibits foreign principals of China from, directly or indirectly, owning, having a controlling interest in, or acquiring, by purchase or otherwise, any real property in Florida.

The law also prohibits persons from knowingly selling real property or any interest therein in violation of the law.

Exceptions

The law permits restricted entities and persons to own de minimis indirect interests in otherwise restricted real property if ownership results from owning registered equities in a publicly traded company owning the land and such ownership is less than 5% of the registered equities or a non-controlling interest in a registered non-foreign entity. Furthermore, a restricted entity or person may acquire such real property by devise or descent or through the enforcement of security interest or debt collection; provided, however, that such acquiror sells or otherwise transfers such land within three years after acquisition. The law also allows restricted entities and persons to continue to own such land in Florida acquired before July 1, 2023 so long as they register ownership with the appropriate department.

With respect to ownership of real property located on or around military installations or critical infrastructure, there is a limited exception for residential property: natural persons who are otherwise restricted by the law may purchase one residential real property that is up to two acres in size if (a) the parcel is located at least five miles from a military installation, and (b) the purchaser has (i) a current verified U.S. Visa authorizing such person to be legally present in Florida and that is not limited to authorizing tourist-based travel, or (ii) official documentation confirming that the person has been granted asylum.

The Florida law does not apply to a foreign principal that acquires real property for a diplomatic purpose that is recognized, acknowledged, or allowed by the U.S. federal government.

Key Takeaways

Though Florida's law grants certain exceptions, they are limited in scope. Furthermore, it is unclear whether the law applies to leasehold interests. Individuals who may be subject to the law should consult an immigration attorney to review their immigration status and entities who may be subject to the law should consult a business attorney to review their beneficial ownership. Moreover, sellers of Florida real property should consult a real estate attorney to assist them in due diligence and disclosure requirements with respect to purchasers, as sellers, too, are subject to the law.

How the Florida law is interpreted and applied may be crucial as other states adopt and model their own similar laws. Lewis Brisbois will continue monitoring the Florida and other state laws prohibiting foreign ownership of real property. To read Lewis Brisbois' prior publication on this growing trend, see our October 9, 2025 client alert analyzing Texas' law and March 15, 2024 client alert on the various states that have introduced or passed laws restricting foreign private investment in agricultural land.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.