We help over 300 owners annually with their tax filings and were involved in 225 property sales in 2022.
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.
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.
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...
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.
The individual(s), corporation or trust, indicated on the legal deed of title of the property.
Obligation for any non-resident to remit 25% of their gross rent on a monthly basis to the Canada Revenue Agency, as tax instalments.
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.
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.
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.
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.
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.
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!
How to Invest in a Canadian Property as a Non-Resident
FL Fuller Landau LLP, Aug. 9, 2020
Management & Accounting
1 450 990 2727
20, Blvd Georges-Gagné, Suite 101
Delson, QC, J5B 2E2 - in the Montréal area
Mon – Fri …… 9 am – 5 pm
Sat, Sun ....… Closed