Updated August 2018

Non-Residents Owning Rental Property in Canada

Important Notice

This article reflects tax rules and information available as of 2018. Tax laws and reporting requirements may have changed since publication. The content is provided for general information only and should not be relied upon as current tax advice.

Due to the recent surge in real estate prices in the past few years and the stable government and economy in Canada many non-residents have decided to invest in the Canadian real estate market. What many non-resident investors fail to realize are the tax implication involved with such investments until it is too late.

The following graphic is a decision tree that should help non-resident investor uncover what tax obligation they may have.

Decision tree outlining Canadian tax considerations and reporting requirements for non-residents purchasing, owning, renting, or selling property in Canada.

Other forms of ownership could also be considered such as ownership of Canadian real estate by foreign corporation which can result in a significant tax advantage when the cost can be justified and in the appropriate scenario. We are available to discuss these potential advantages.