Info for Non Residential Sellers

There are no restrictions on 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
Banks and lenders usually require non-residents to have a down payment of 35% to 50% of the purchase price. To make mortgage payments, non-resident borrowers must open a Canadian bank account from which the payments can be drawn. Qualifying for a Canadian mortgage is generally straightforward, and would usually require an interview to discuss employment, assets and liabilities, and income. 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.

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, our associates will be pleased to introduce you to immigration specialists, lawyers, or financial advisors who can facilitate a smooth transition into your new Canadian home.

www.lawsonlundell.com/resources/CrossBorderTaxIssues.pdf