non resident

Non Resident

There are currently no restrictions for non-residents when purchasing real estate in Canada, nor are there extra fees or tax implications payable at the time of purchase/closing. A non-resident may, in fact, purchase multiple properties. Tax implications are limited to non-residents renting out their Canadian property. In this case, they need to file a Canadian tax return declaring the rent as income. This is a relatively easy and straightforward process. 

Mortgages

Lenders typically require non-residents to have a down payment of 35% to 50% of the purchase price. Non-resident borrowers must attain a Canadian bank account from which the mortgage payments can be drawn, if applicable. Qualifying for a Canadian mortgage is a process usually requiring an interview to discuss employment, assets and liabilities, and income. With advances in form-based online applications, you may be able to navigate some of the process online. You may be asked to have identification information notarized by a lawyer if you are unable to meet the lender in person. As a non-resident, you may also be asked for a letter from your bank in your country of residence as an additional measure to verify your identity.

Legal Information

As a non-resident purchaser, you will need the services of a Canadian lawyer or notary public to help transfer the title through the Land Titles Office, and prepare mortgage documents. A non-resident selling their property must claim any gains received as income for tax purposes.

If you would like more information about moving to Canada, I would be happy to introduce you to immigration specialists, lawyers, or financial advisors who can facilitate a smooth transition into your new Canadian home.

More Info:

• Non-Residents, Canada Customs and Revenue Agency
• Tax Treaties, Canada Customs and Revenue Agency
• Cross Border Tax Issues: The Canadian Perspective, Reinhold G. Krahn. Vancouver: Lawson Lundell, December 2000