ITIN Setup for Foreign Buyers
Foreign buyer purchasing a Miami condo without a US Social Security Number? IRS Form W-7 runs 6 to 10 weeks. Start at offer acceptance, not at closing. A Certifying Acceptance Agent (CAA) can verify your passport without you mailing it to the IRS -- the buyer-friction win most ITIN content skips.
Foreign buyers usually meet the ITIN question late. The lender asks for it three weeks before closing, or the title company asks for it at closing prep, or the CPA asks for it at the first 1040-NR filing after the unit goes into rental. By the time the ITIN question lands, the buyer has already lost the timing window that would have made it easy. ITIN issuance runs 6 to 10 weeks in 2026, longer during January through April peak season; a buyer who starts the W-7 at offer acceptance has the ITIN in hand at closing. A buyer who starts at closing week has two options, both bad — push the closing 6 to 10 weeks or mail the original passport to the IRS Austin Service Center, where it sits for the duration of the processing window.
Thomas Druck PA has been a Miami broker since 2006 and works primarily with absentee owners — including foreign buyers who default to “buy and eventually sell” rather than “buy and hold forever.” Tom is not an IRS-authorized Certifying Acceptance Agent and does not file W-7s. The ITIN application itself belongs to a CAA — typically a CPA, tax attorney, or enrolled agent with the IRS CAA designation, who verifies original documents in person or via video and submits the W-7 with a Certificate of Accuracy that lets the buyer keep their passport. What Tom does: starts the ITIN conversation at offer acceptance, makes sure the buyer knows the CAA workflow before the lender or title company forces a passport-mailing decision under time pressure, and aligns the closing calendar against the W-7 clock so the ITIN arrives when it is needed, not after. This article covers what the foreign buyer should plan around — the W-7 timeline, the CAA mechanic that most buyers do not know about, the realistic pre-purchase application paths, the FIRPTA-reclaim payoff at eventual sale, and the ITIN expiration rule that catches buy-and-hold owners who never file a 1040-NR.
What an ITIN actually is and why timing decides everything
The Individual Taxpayer Identification Number (ITIN) is a 9-digit tax processing number issued by the IRS to individuals who must file US tax returns or be reported on US tax filings but cannot obtain a Social Security Number. The ITIN starts with the digit 9 and was created by the IRS in 1996 to give non-US-eligible individuals a way to comply with US tax reporting. For a foreign Miami buyer, the ITIN is required for foreign national mortgage closing-side reporting (most lender programs require it as part of the closing documents), Form 1040-NR filing if you generate rental income on the unit, FIRPTA withholding reclaim at the eventual sale, and US bank account opening at most major banks. Without the ITIN, none of these downstream steps proceeds cleanly.
The reason a foreign buyer should care about ITIN timing on day one of the deal: the IRS issues ITINs in 6 to 10 weeks from a complete W-7 application, longer (10 to 14 weeks) during the January through April peak filing season. A buyer who starts the W-7 at offer acceptance has the ITIN in hand by the typical 45 to 60 day closing window — clean. A buyer who starts the W-7 at closing week has three bad options: push the closing 6 to 10 weeks waiting for the ITIN, mail original passport plus other identification documents to the IRS Austin Service Center (which retains them through the processing window), or skip the ITIN at closing and let the lender or title company route the file through whatever workaround they use under time pressure. The third option creates downstream friction at every subsequent filing. The realtor’s job is to surface the ITIN timing question at offer acceptance, before the calendar is locked in.
The 5 ITIN decisions a foreign buyer should make before closing week
- Start the W-7 at offer acceptance, not at closing. The single most important ITIN decision is when. The IRS issues ITINs in 6 to 10 weeks (longer Jan-April peak). A typical Miami closing runs 45 to 60 days from offer acceptance. Starting the W-7 at offer acceptance puts the ITIN clock and the closing clock on parallel rails, finishing at roughly the same time. Starting at closing week puts them in serial — either the closing waits for the ITIN or the closing proceeds without it and downstream filings get the friction. The realtor-side calendar trigger: ITIN conversation at offer acceptance, before the lender or title company forces it under time pressure.
- Use a Certifying Acceptance Agent (CAA), not mail-the-passport-to-Austin. A CAA is a CPA, tax attorney, or enrolled agent the IRS has designated to verify original documents in person and submit the W-7 with a Certificate of Accuracy. The CAA verifies your passport, signs the Certificate, and you keep the passport. The alternative — mailing your original passport plus original supporting documents to the IRS Austin Service Center — is operationally workable but the IRS retains the documents through the 6 to 10 week processing window. Most foreign buyers travel during that window. The CAA path eliminates this entirely. Most ITIN content names the CAA in passing; few stress that it is the default workflow.
- Use a foreign-based CAA if you cannot fly to Miami. Many CAAs verify foreign-applicant documents via video call as well as in person. This is particularly useful for European, Latin American, and Asian buyers who do not want to fly to Miami solely for ITIN processing. Foreign-based CAAs (CAAs in Germany, Brazil, Mexico, the UK, etc.) can also serve this role for applicants in their region. The realtor-side question: does your CAA serve buyers in your home country, and do they verify via video? Ask before signing the W-7 engagement letter.
- Pick a CAA category that matches your downstream tax footprint. ITIN application is the entry point to a longer US tax relationship: 1040-NR annual filing if you rent the unit, FIRPTA paperwork at sale, possible FATCA / FBAR coordination depending on your US bank footprint. A CAA who is also a CPA experienced in foreign-investor US real estate gives you continuity through the full holding period. A CAA who is purely an immigration attorney solves the W-7 but the 1040-NR and the FIRPTA workflow then need a separate CPA. Pick the CAA who can run the whole arc if continuity matters; pick the cheapest CAA if you already have a US CPA lined up.
- Plan for ITIN expiration if you are buying and holding without rental income. ITINs expire if not used on a federal tax return for three consecutive years. The IRS also periodically retires older ITIN number ranges and requires renewal. A buyer who obtains an ITIN at purchase, never rents the unit, never files a 1040-NR, and holds for 10 years before selling will have an expired ITIN at sale — the FIRPTA filing then runs through an ITIN renewal application that adds 6 to 10 weeks to the post-sale refund process. The buy-and-hold owner without rental income should plan for ITIN renewal once before sale, or accept the renewal-at-sale friction.
How Thomas Druck PA works the ITIN timeline with foreign buyers
- Discovery call. 30 minutes, no obligation. We map the target neighborhoods, the budget, the use case (primary, second home, seasonal rental, pure investment), the financing path (cash vs foreign national mortgage), and where you are on your US tax team — most importantly, whether you already have a CAA or US-licensed CPA lined up. If not, that referral becomes step two, not step five.
- CAA introduction at offer acceptance. Tom does not file W-7s and is not a CAA — that is FREC scope plus IRS designation territory. What Tom does at offer acceptance: introduces buyers without a CAA to CAAs experienced in foreign-investor Miami real estate, including foreign-based CAAs for buyers who do not want to fly to Miami. Tom does not refer to specific CAAs by name in any public-facing document (FREC exposure on referrals); the introductions happen privately and you choose.
- Pre-purchase Net + Risk Review. Before any offer goes in: a written breakdown of acquisition cost, HOA exposure, Milestone status, reserve adequacy against the 2026 Fannie Mae 15% threshold, FL insurance climate exposure, AND a flag on the ITIN timing question — when the W-7 should start, which CAA path fits your travel pattern, and how the W-7 clock aligns with your closing calendar. The review is scoped to Miami real estate mechanics; the W-7 mechanics themselves stay with your CAA.
- Closing calendar aligned against the W-7 clock. Once the contract signs and the W-7 starts, Tom holds the closing date against the expected ITIN issuance date — coordinating with the lender (if financing) and the title company so the ITIN arrives in time for the closing-side reporting that requires it. If the W-7 slips during the IRS processing window, Tom flags it early so the lender or title company can plan around it rather than discover it at closing.
- Post-closing handoff back to the CAA / CPA. At closing, the ITIN-related closing documents (1099-S, FIRPTA-relevant if applicable, any lender 1098 mortgage interest statements) are routed to your CAA / CPA for the post-closing filing relationship. Tom’s role ends at the Miami real estate closing; the tax-side continuity belongs with your CAA / CPA team.
The ITIN mechanics (the actually-hard parts)
Form W-7 — the actual application
The W-7 is the IRS Application for Individual Taxpayer Identification Number. It collects the applicant’s identity (name, foreign address, date of birth, country of birth, country of citizenship, foreign tax ID if applicable) and the reason for application — which is where most foreign buyers get stuck. The W-7 requires a tax-related purpose; the IRS rejects applications without one. For a foreign Miami buyer the most common purposes are: filing a Form 1040-NR (current or prospective rental income), Exception 3 (third-party reporting of mortgage interest when the buyer is obtaining a US mortgage on the property), Exception 1 (passive income — prospective rental income filing on Schedule E), or Exception 4 (FIRPTA disposition — relevant at the eventual sale, not at purchase). Each path has a different documentation requirement and the CAA selects the path. The W-7 is one page; the supporting documentation is what makes it 50 to 100 pages of attachments.
Document verification: CAA Certificate of Accuracy vs IRS Austin Service Center
The W-7 requires original documents (passport plus secondary identification in most cases) to verify the applicant’s identity. There are two paths: (1) CAA Certificate of Accuracy — the CAA verifies the originals in person or via video, signs IRS Form W-7 (COA), and the W-7 ships to the IRS with the CAA’s verification rather than the originals. You keep your passport. (2) Mail originals to the IRS Austin Service Center at the address in the W-7 instructions; the IRS retains them for the 6 to 10 week processing window and returns them after. The Austin path is functional but operationally hostile for buyers who travel during the window. The CAA path is the default workflow for foreign Miami buyers and the buyer-friction reduction most ITIN content under-explains.
Timeline — what 6 to 10 weeks actually means in 2026
The IRS publishes ITIN processing as “approximately 7 weeks” on the W-7 instructions; current 2026 practitioner reports cluster at 6 to 10 weeks for off-peak applications (May through December) and 10 to 14 weeks for January through April peak filing season. Add 1 to 2 weeks of mail transit if the W-7 is filed by the applicant rather than a CAA who uses authorized priority routing. The realtor-side calendar implication: a typical Miami closing of 45 to 60 days lines up cleanly with an ITIN started at offer acceptance during off-peak months, and runs tight during peak. Closings scheduled during February through May should start the W-7 even earlier — at contract signing if not before.
Pre-purchase application paths — what actually works
A common question is whether the W-7 can be filed before the buyer has a US property under contract. The IRS requires a federal tax purpose for every W-7; the practical paths for a foreign Miami buyer are: (1) Exception 3 — third-party mortgage interest reporting. Once you have a US mortgage commitment letter from a foreign national lender, the W-7 can be filed under Exception 3 (the lender will be required to file Form 1098 reporting mortgage interest paid). This is the most common pre-purchase path for financed buyers. (2) Exception 1 — passive income / prospective rental. A buyer planning to rent the unit can file the W-7 under Exception 1 prospectively, with documentation showing the planned rental activity. (3) Wait for a filing event. Cash buyers purchasing for personal use with no rental income often must wait until the first filing event materializes — most commonly the FIRPTA withholding at sale (Exception 4) or the first year of rental income filing. Cash-buyer-for-personal-use is the hardest path to pre-apply on. The CAA confirms which exception fits your specific facts before submitting the W-7.
Expiration and renewal
ITINs expire if not used on a federal tax return for three consecutive years. The IRS also periodically retires older ITIN number ranges and requires renewal of those ranges regardless of recent use (the most recent large retirement was the post-PATH Act 2016 wave, with subsequent smaller waves). Renewal uses the same Form W-7 with the renewal box checked, runs the same 6 to 10 week timeline, and requires the same documentation. A buy-and-hold foreign owner who never files a 1040-NR (because the unit is held as a personal residence with no rental income) will have an expired ITIN by year 10 — the renewal then becomes a critical-path item for the FIRPTA filing at sale, adding 6 to 10 weeks to the refund timeline. The buy-and-hold owner should plan for at least one renewal before the eventual sale, or accept the renewal-at-sale friction as part of the FIRPTA reclaim path.
Common ITIN mistakes foreign Miami buyers make
- Starting the W-7 at closing week. The most expensive ITIN mistake. The buyer signs the contract at offer acceptance, the deal moves toward a 45 to 60 day closing, and the lender (or title company) asks for the ITIN three weeks out. The buyer scrambles to find a CAA, files the W-7 under time pressure, and either delays the closing 6 to 10 weeks or mails the passport during travel season. Fix: start the W-7 the week the offer is accepted, not the week the lender asks.
- Mailing the original passport to the IRS Austin Service Center without considering the CAA path. A buyer who reads the IRS W-7 instructions in isolation often defaults to “mail the passport.” That works mechanically and the IRS returns the passport — but during the 6 to 10 week window the buyer cannot travel internationally. The CAA Certificate of Accuracy path eliminates this entirely and most buyers do not know it exists. Ask the CAA about COA verification before defaulting to the Austin mail path.
- Using an ITIN-mill or general tax-prep shop instead of an experienced CAA. ITIN mills exist; they crank through W-7s at low cost but often without the federal-tax-purpose discipline that prevents IRS rejection. A rejected W-7 wastes 6 to 10 weeks and forces a re-application. Use a CAA with documented foreign-investor real estate experience, even at higher fee — the rejection risk is the real cost lever.
- Not pre-qualifying the W-7 application path with the CAA at offer acceptance. Most W-7 rejections come from misalignment between the application reason and the supporting documentation — Exception 3 filed without a lender commitment letter, Exception 1 filed without prospective rental documentation, cash-buyer W-7s filed without any current filing reason. Pre-qualify the path with your CAA at offer acceptance, before filing under time pressure later.
- Letting the ITIN expire silently during long buy-and-hold periods. A buy-and-hold owner who never files a 1040-NR (because the unit is personal-use, no rental income) will have an expired ITIN by year 10 of ownership. The FIRPTA filing at sale then runs through an ITIN renewal application that adds 6 to 10 weeks to the post-sale refund. Track ITIN currency through the holding period; the CPA / CAA can flag the expiration window before it matters.
What this article does not cover
This article covers the Miami real estate side of ITIN setup for foreign buyers — the timing question that anchors against the closing calendar, the CAA workflow as the default friction-reduction path, the pre-purchase application paths that work in practice, and the expiration / renewal mechanics that catch long-hold owners. It does not cover: W-7 preparation or filing itself (CAA work, not realtor work), CAA selection by name (FREC referral exposure — Tom introduces buyers to CAAs privately rather than naming specific shops on the public site), home-country tax treatment of the US property income or eventual gain (your home-country tax advisor or Steuerberater), home-country reporting obligations on US-held assets (your home-country tax advisor), FATCA / FBAR coordination on US bank accounts (your CPA), specific 1040-NR filing strategy or rental income optimization (your CPA), or 1031 exchange Qualified Intermediary work (a separate buyer hub article covers this for the 1031-focused buyer). The realtor handles the Miami real estate and the closing calendar; the CAA handles the W-7; the CPA handles the ongoing 1040-NR and FATCA / FBAR; the title company handles closing-day reporting that requires the ITIN.
Quick answers for foreign buyers
What is an ITIN and why do foreign Miami buyers need one?
ITIN = Individual Taxpayer Identification Number. The IRS issues it to non-US persons who must file US tax returns but cannot obtain a Social Security Number. Foreign Miami buyers need it for Form 1040-NR filing on rental income, FIRPTA withholding reclaim at the eventual sale, many foreign national mortgage programs that require it for closing-side reporting, and US bank account opening at most major banks.
How long does ITIN issuance take in 2026?
Plan 6 to 10 weeks from a complete W-7 application to ITIN issuance, occasionally longer during peak filing season (January through April). The IRS sends the ITIN by mail to the address on the application. Start the W-7 the same week you start a mortgage application or sign the purchase contract — not at closing.
Do I need to mail my passport to the IRS to get an ITIN?
Not if you use an IRS-authorized Certifying Acceptance Agent (CAA). The CAA verifies original documents in person (or via video for foreign-based CAAs) and issues a Certificate of Accuracy that accompanies the W-7. Without a CAA, you must mail original passport plus originals of other identification to the IRS Austin Service Center, which retains them for the 6 to 10 week processing window — a major friction point for buyers who need their passport during the application period.
Can I apply for an ITIN before I have a US property under contract?
Usually no without a federal tax purpose. The IRS requires Form W-7 to show one. For a foreign Miami buyer the acceptable pre-purchase paths are: Exception 3 (third-party reporting of mortgage interest, available once you have a US mortgage commitment letter from a foreign national lender), Exception 1 (passive income or prospective rental, available if you plan to rent the unit and can document the prospective rental activity), or wait until the first filing event materializes (Exception 4 at FIRPTA disposition is the most common one for cash buyers who never rent). A CAA confirms which path fits your specific facts before filing the W-7.
Does Thomas Druck handle the ITIN application?
No. Tom is a Florida REALTOR (BK3172203) and not an IRS-authorized Certifying Acceptance Agent. He can introduce you to CAAs experienced with foreign Miami buyers — typically a CPA or tax attorney with the CAA designation — but the W-7 itself is the CAA’s filing, not the realtor’s.
What happens to my ITIN after I get it -- does it expire?
ITINs expire if not used on a federal tax return for three consecutive years. The IRS also periodically retires older ITIN ranges and requires renewal. If you got an ITIN to buy the Miami condo but never file a 1040-NR (because the condo is a personal residence with no rental income), the ITIN will eventually expire and you will need to renew it before any FIRPTA-related filings at sale.
Related resources
- Miami Realtor for German-Speaking Buyers -- DACH-region buyers (German, Austrian, Swiss). Steuerberater coordination, EUR/USD wire mechanics, and the ITIN question handled in German if you prefer.
- Foreign National Mortgages in Miami -- the lender-side workflow. Most ITIN searches originate here -- the lender asks for ITIN as part of the closing-side reporting requirement.
- FIRPTA For Future Sellers -- the FIRPTA reclaim payoff. The ITIN is what lets you file Form 1040-NR at sale and reclaim over-withheld FIRPTA. Without an ITIN, the reclaim path is blocked.
- FIRPTA For Non-US Condo Sellers in Miami (FAQ) -- the seller-side FIRPTA FAQ. Useful at the eventual sale when the ITIN obtained at purchase becomes the mechanism for the 1040-NR reclaim filing.
- Investment Condo Buildings In Miami -- building shortlist with rental-policy profiles relevant to foreign buyers planning to generate rental income (which is the most common Exception 1 path for pre-purchase W-7 filing).
- Non-Resident Buyers hub -- the full overview of the 16-article series.
Planning your Miami condo purchase with ITIN timing in mind?
Start with a Pre-Purchase Net + Risk Review. Written breakdown of acquisition cost, HOA exposure, Milestone status, FL insurance climate exposure, AND a flag on the ITIN timing question — when the W-7 should start, which CAA path fits your travel pattern, and how the W-7 clock aligns with your closing calendar. No obligation. The W-7 itself, the CAA Certificate of Accuracy, Form 1040-NR strategy, and FATCA / FBAR coordination stay with your CAA, CPA, or Steuerberater — the Net + Risk Review covers the Miami real estate mechanics that have to execute against the W-7 clock.