We help over 500 owners annually with their tax
filings and were involved in 225 property sales in 2023.
The expert team for NON-RESIDENT TAX
After acquiring knowledge and experience in the field of non-residents and real-estate taxation over the course of the last 15+ years, Julie Côté finally starts her own project. Along with her team, we will assist you with your Canadian tax compliance obligations.
OUR MANDATE: To maximize the profitability of your canadian investments by applying the best solutions for your particular situation, all while making sure you are in compliance with the latest tax rules and avoiding penalties.
Real-Estate TAXATION Services
NON-RESIDENT TAX FILING
NR6 WAIVER FORMS & NR4 SLIPS
PROPERTY SALE CERTIFICATES
CAPITAL GAIN CALCULATION
TAX PLANNING
BOOKKEEPING
TRAINING FOR PROFEsSIONALS
The intricacies of NON-RESIDENTS
Do you own a rental or vacation property in Canada and live outside
the country? No matter your situation, it’s
important to know you have tax obligations in Canada.
Rental properties We provide full non-resident income tax and GST-HST-QST
filings for your Canadian rental properties. You could lose 25% of your gross
rental income simply by not filing. You are also exposing yourself to harsh penalties
for failure to comply with part XIII of the tax law! This obligation comes
into effect the moment you receive your first month of rent.
We also provide an option to avoid waiting for the year
end to claim that 25% back, in the form of the NR6 annual filing.
Underused housing tax law (UHT, new 2022!) Since 2022, non-Canadian owners must file an annual
reporting form and pay a 1% tax based on the value of their property if they
cannot prevail themselves of one of the exemptions available! Contact us to
know more.
Québec RL-31 slips As a landlord in the province of Québec, you have the
obligation to provide a tax slip (RL-31) to the tenant(s) present in your property on December 31st. This applies no matter the tax situation of your
tenant(s). Penalties may apply for failure to comply by February 28th.
Disposition of a property Are you a non-resident selling or donating a Canadian
property? The lawyer/notary has an obligation to withhold funds (minimum 37.875%) based on the sale price. We have a two-step solution that will ensure that you receive the most from your sale and leave as little as possible in the hands of the
Canadian (and Québec) government(s).
Step 1) Compliance certificate filings: this obligation
ensures that tax instalments are paid, using the money withheld by the lawyer
or notary, on 100% of the gain, excluding resale expenses. Once issued, these
certificates confirm that the buyer is no longer liable for the possibility of
unpaid taxes on the transaction. The lawyer or notary can then proceed to release
the balance of the withholding. The instalments will remain with the Canadian government
(and Québec) until the filing of the final tax returns by April 30th
of the following year (step 2).
Step 2) Capital gain tax return filings: to
declare the exact results of your sale (profit or loss) with the Canadian (and
Québec) government(s) all while including resale expenses and the instalments
previously paid to the tax authorities (from step 1).
What's what in the real-estate taxation world...
Non-resident
An individual living outside Canada, it could be a Canadian national or
a foreigner. In the case of a corporation or a trust, the residency is based on
the country where it was constituted or where the trustees are located.
Owner
The individual(s), corporation or trust, indicated on
the legal deed of title of the property.
Part XIII withholding
Obligation for any non-resident to remit 25% of their gross rent on a
monthly basis to the Canada Revenue Agency, as tax instalments.
NR6 and Agent
Annual filing allowing a non-resident owner to appoint a Canadian as their
"guarantor" for tax purposes in order to remit 25% after expenses,
rather than the gross.
Disposition
The action of disposing of a property in favor of either a third party
or a related party (non-arms-length); in all cases tax is payable. This applies
to Canadians and non-Canadians alike. Donations do not exist in the tax law in
Canada.
Compliance certificate
Document issued by the government(s) to review a real-estate transaction.
This triggers tax instalments payable on the gross plus-value (sale price vs
acquisition price only). These certificates confirm to the buyer, that they are
no longer liable for the vendor's taxes.
UHT
Underused housing tax, a 1% annual federal tax on properties owned by
non-Canadians. The filing is mandatory, even if the owner is eligible for an exemption.
GST-HST-QST
These sales taxes will apply to commercial properties. The registrant owners have the obligation to do short term rentals and collect sales taxes on them.
LEXICON
Training for Professionals
We offer accreditated courses to notaries, title
attorneys and realtors across Canada. Come learn about the world of non-resident
ownership, how to handle these tricky situations and better serve your clients.
Our courses are offered
in various formats: extensive (90 minutes), condensed (45 minutes), in person and
live online. We can also create a course based on your specific needs. We offer free consultations!
