On May 27, 2026, Florida Governor Ron DeSantis called a special legislative session to push a constitutional amendment with a blunt name: "Save Our Homes from Excessive Property Taxes." If it passes the November 2026 vote, Florida would become the first large U.S. state to effectively eliminate property tax on most primary residences.
The announcement made immediate noise — Bloomberg, Politifact, UBS, every outlet covered it in the days that followed. But there's important fine print that completely changes the read if what you own (or plan to own) in Miami is an investment apartment, a second home, or a short-term rental condo.
Here's the plan, the conditions, and why foreign buyers (Chilean, Argentine, Mexican, Colombian) buying in Brickell or Miami Beach to rent out don't benefit directly — at least not in the way the headline suggests.
What DeSantis is proposing, exactly
The amendment raises Florida's homestead exemption (the tax exemption on a primary residence) in three staggered phases:
| Year | Homestead exemption | Effect |
|---|---|---|
| Today (2026) | $50,000 | The first $50K of assessed value is exempt |
| 2027 | $150,000 | Homes ≤ $150K pay zero property tax |
| 2028 | $250,000 | Homes ≤ $250K pay zero property tax |
| Eventually | $500,000+ | Homes ≤ $500K pay zero property tax |
For homes above the threshold, property tax applies only to the value that exceeds the exemption. A $400K home in 2028 would be taxed on just $150K (the first $250K is exempt).
DeSantis claims the amendment eliminates property tax for 60% of homeowners in 2028, scaling to 92% once the exemption reaches $500K.
The controversy: the numbers don't add up
Florida's own Office of Economic and Demographic Research (the state's economic analysis office) reviewed the data and found a significant gap with what DeSantis says:
- At the $250,000 threshold: DeSantis says 60%; the state office says only 28% of homestead parcels qualify.
- At the $500,000 threshold: DeSantis says 92%; the state office says 75–80%.
UBS Wealth Management and Politifact published parallel analyses confirming the discrepancy. The reason is geographic: in counties like Miami-Dade, Broward, and Palm Beach (where the state's highest-value real estate is concentrated), the median homestead parcel sits well above the proposed threshold.
In Miami-Dade, where the median homesteaded home is at $420K, the $250K exemption only eliminates property tax for roughly 18% of local homeowners — far from the 60% national figure the governor cites.
The fine print that changes everything: homestead only
Here's the critical point for foreign investors, and the one almost no outlet emphasized in its coverage:
The exemption applies only to properties classified as "homestead" — that is, the owner's primary residence, where they declare their tax domicile and actually live a substantial part of the year.
That categorically and explicitly excludes:
- Investment properties (bought to rent out)
- Second homes (the vacation home, the apartment the owner uses 2–3 months a year)
- Short-term rental condos (Airbnb, VRBO, etc.)
- Non-resident properties (any owner who is not a Florida tax resident)
- LLCs and trusts (most foreign investors buy through these structures for tax reasons)
One of our clients from Buenos Aires, with an $800K apartment in Brickell that he rents short-term: he keeps paying the full property tax, no matter what happens with the amendment.
So what changes for the LatAm investor?
Directly, nothing. But there are indirect effects worth considering, and they're the ones to monitor:
1. Greater local demand for primary homes ≤ $500K
If the amendment passes, buying a sub-$500K home in Florida and declaring it as homestead becomes significantly more attractive for local residents or relocaters. That could push prices upward in that segment — especially in secondary counties (Lee, Hillsborough, Orange) where homes ≤ $500K are abundant.
In Miami-Dade, the impact would be smaller given the dispersion of values above the threshold, but there will be pressure on the $300K–$500K segment (typically: 1–2 bedroom condos in Edgewater, Coconut Grove, parts of Coral Gables).
2. Potential tax arbitrage with a visa or relocation
For LatAm clients already weighing residency in Florida (E-2, EB-5, NIW, or simply snowbird with a relocated tax domicile), the amendment tilts the math toward buying a sub-$500K homestead home as a tax anchor, in addition to any further investment properties.
3. Risk: if the state loses revenue, it recovers it elsewhere
Property tax in Florida funds schools, local infrastructure, fire departments, the sheriff. If the state gives up roughly $8B a year in revenue (Tax Foundation estimate), it will have to replace it. The most likely options:
- Higher sales tax (affects everyone equally, including foreign renters who winter here)
- Higher millage rate on non-homestead — that is, raising the tax rate specifically on investment properties and second homes to compensate
- Tourism tax expansion (would hit short-term rental operators)
The least optimistic scenario for foreign investors: the "reduction" for homesteaders gets financed with a direct increase on investment properties.
What to do in the meantime?
The vote is in November 2026 — there's time. And even if the special legislative session passes, it takes 60% approval on the ballot for the constitutional amendment to be ratified. That's not trivial — several similar amendments in Florida have failed to reach 60%.
My practical recommendation:
- Don't change your investment thesis based on this news. The cap rate on your rental doesn't move.
- Monitor the millage rate in your county between 2027 and 2028. If they raise the rate on non-homestead, that's when it hits your cash flow.
- If you were considering relocating to Florida (E-2 visa, snowbird, etc.), the amendment tilts the case toward buying your primary home here and taking advantage of the exemption.
- If you're buying a sub-$500K apartment as a future homestead (for when you move, or when a child studies in Florida), buying before November 2026 may make sense given the possible price compression after the amendment.
The headline is appealing, but the mechanics are narrower than they look. Before you move capital, let's talk.