Are you a non-resident looking to buy or sell property in the Canadian property market but don’t know where to start? Look no further! We have put together the ultimate guide to buying properties in Canada for non-residents. In this post, we will cover everything from legal requirements and tax implications to financing options and the current state of the real estate market. Whether you’re looking to buy a vacation home or an investment property, our comprehensive guide has got you covered. So grab your coffee, and let’s dive into all that Canada has to offer for non-resident property buyers!
Required Documents for Non-Residents Buying Property in Canada
As a foreign national, there are a few additional documents you will need to provide in order to buy property in Canada. These include:
- A valid passport
- A permit to enter Canada, if required
- Proof of immigration status in Canada, if required
- A letter from your employer confirming your employment status and salary, if you are employed in Canada
- Your most recent tax assessment notice, if you are a self-employed individual
- Proof of funds for the purchase, such as bank statements or a letter from your financial institution
Steps to Buy Property as a Non-Resident
- Determine if you are eligible to buy property in Canada as a non-resident. In order to do this, you will need to consult with a licensed Canadian immigration lawyer.
- Once you have determined that you are eligible to purchase property in Canada, you will need to find a suitable piece of real estate. You can search for properties online or through a real estate agent.
- Once you have found a suitable property, you will need to make an offer to the seller. If your offer is accepted, you will then need to obtain financing for the purchase. Non-residents can often obtain financing through banks or other financial institutions operating in Canada.
- Once your financing has been approved, you will then need to complete the necessary paperwork and pay any associated fees associated with the purchase of the property.
- After the paperwork has been completed and the fees have been paid, you will officially become the owner of the property!
Factors to Consider When Buying Property
There are a few key factors to keep in mind when purchasing property in Canada as a non-resident. First and foremost, you’ll need to obtain the proper permissions and visas in order to purchase and own property in Canada. You’ll also need to be aware of the different taxes that apply to non-residents when buying property. Finally, it’s important to work with a qualified real estate agent who can help you navigate the process of purchasing property in Canada.
Tax Implications for Non-Residents
When it comes to purchasing property in Canada as a non-resident, there are a few things you need to be aware of in regard to taxes. First and foremost, you will be subject to a Non-Resident Speculation Tax (NRST) of 15% on the purchase price of any home located in the Greater Golden Horseshoe region of Ontario. In addition, you will also be required to pay the harmonized sales tax (HST) on the full purchase price of your home.
Furthermore, it is important to note that as a non-resident, you will not be eligible for any tax rebates or refunds that are available to Canadian residents. Therefore, it is important that you factor in these additional costs when budgeting for your new home.
If you are looking to rent out your property, it is important to keep in mind that you will be responsible for paying income tax on any rental income earned. However, you may be able to offset some of this cost by claiming expenses such as mortgage interest, property taxes, and maintenance/repair costs.
Finally, it is worth noting that capital gains tax may apply if you sell your property within five years of purchase. For more information on taxes and non-residents buying property in Canada, we recommend speaking with a qualified accountant or tax professional.
Best places to buy property in Canada
Let us summarise some of the most sought-after real estate markets in Canada, along with the factors that make them attractive investment options.
Vancouver
Vancouver’s many positives include its central location, proximity to parks and other natural attractions, and its proximity to the U.S. border. It has a moderate climate, is full of culture, and is consistently ranked as one of the best places to live in the world. It’s a great place to live but one of the priciest in Canada, so you’ll have to consider the trade-offs carefully.
Montreal
Montreal is a desirable destination for anyone seeking a home in Quebec because it is a cultural hub with a lot to offer. Even though French is the official language, the area is quite multicultural, making it a great spot to settle down. Real estate is still expensive, but outside of the city centre, you can expect to pay roughly half as much per square metre as in places like Vancouver.
Toronto
Toronto, the largest and most varied city in Canada, is the country’s economic and financial centre. Although the cost of living is high, there is still excellent real estate in the Greater Toronto Area from which one can easily commute to the city centre without paying the astronomical prices associated with doing so.
Conclusion
Canada is a great place for non-residents to buy properties. However, there are many things that must be taken into consideration when doing so. Our article provides an ultimate guide to buying property in Canada for non-residents, giving you all the necessary information, from legal requirements and mortgage options to taxes and other important factors. We hope this guide has helped you understand the process of purchasing a property as a foreign national, and we encourage you to do further research, if needed, before committing to such a big purchase.
