Episode 033 – Tax Considerations For Foreigners Buying Canadian Real Estate

In our firm’s latest podcast, Kenneth Keung and Kim G C Moody discuss tax issues that need to be considered when non-residents of Canada purchase Canadian real estate. Specifically, Kenneth and Kim discuss: Some recent legislative changes that have impacted the ability of or have consequential impacts such as a ban on foreigners from buying Canadian real estate from January 1, 2023 – December 31, 2024, the Underused Housing Tax Act (and its onerous filing requirements and penalties) and various vacancy taxes in certain municipalities across Canada.   What legal form should be considered when purchasing property in Canada?   If the Canadian property will be rented out, what are some of the tax issues that need to be considered (Part XIII withholding requirements, section 216 reporting)?   If the Canadian property is sold, what are some of the tax, withholding and reporting requirements (section 116 requirements)?   The surprising result when personal-use Canadian real estate property is acquired by a foreigner through a foreign corporation (subsection 15(1) in conjunction with subsection 214(3) resulting in a withholding tax remittance requirement) and the recent comments about this at the STEP Canada CRA RoundTable in June 2023. Happy listening!