Foreign nationals can freely buy and sell residential, commercial, and recreational properties in Canada. The general process is similar to that for Canadian citizens, but there are a few additional considerations for non-residents.

Purchasing Property

• Financing: Non-residents may face stricter requirements when obtaining a mortgage from Canadian banks. A larger down payment and proof of sufficient income may be required.

• Non-Resident Withholding Tax (NRWT): Upon selling a property, non-residents are subject to a 15% withholding tax on the total sale proceeds. This tax can be reduced or eliminated by applying for a Certificate of Compliance from the Canada Revenue Agency (CRA).

• Foreign Investment Review Act (FIRA): Large investments in Canadian real estate by non-Canadians may be subject to review under FIRA. This applies to purchases of land, buildings, and certain types of businesses.

Selling Property

• Non-Resident Withholding Tax (NRWT): As mentioned earlier, non-residents are subject to a 15% withholding tax on the total sale proceeds of their property.

• Certificate of Compliance: To avoid or reduce the NRWT, non-residents must obtain a Certificate of Compliance from the CRA. This requires filing tax returns and ensuring all Canadian tax obligations are met.

• Real Estate Agent: It is advisable to work with an experienced real estate agent who is familiar with the nuances of buying and selling property as a foreigner in Canada.

Additional Considerations

• Currency Exchange: Be mindful of currency exchange rates when buying or selling property in a different currency.

• Legal Advice: Consult with a lawyer to ensure you understand the legal aspects of buying and selling property in Canada, including contracts, title transfers, and tax implications.