Alexander Richards - Overseas Investment Property in Canada, Real Estate, Land

Overview
As a commonwealth country, Canada share many similarities with the UK and is a popular destination for tourism and for retirement. A vast country, Canada offers breathtaking scenery, and varying climates. The main spoken language in Canada is English, however the province of Quebec is French speaking. If you plan to stay in Canada for 6 months or less each year, you are considered as a non-resident. You are however still able to open a bank account and buy property. If you plan to live in Canada for more than 6 months per year, you must apply for immigrant status.
Investor Statistics

Canada has a fairly unique property market. It's a mature market and offers foreign owners similar rights to Canadian citizens with regards to freehold ownerships of property. The demand for rental accommodation resale property is sustainable and in most areas, property is still very affordable, especially by European standards.

Taxation

Capital gains tax is payable and as a non-resident, a payment will be required in advance of the sale, which will subsequently be liberated. Normal Canadian tax rates will be applied to 50% of the gain. As a non-resident, rental income is taxed at 25% of the gross rental income. Canada has dual taxation treaties with many countries and therefore it is possible that some of the tax burden can be offset in your home country. Property transfer taxes are generally 1% of the first CAD200,000 and 2% of the remainder and can vary from state to state. Annual property taxes (similar to UK council tax) are between 0.5-2.5% of the declared property value.

Alexander Richards would always recommend that you consult a tax specialist regarding your personal circumstances.

Financing

Mortgages are available to foreign buyers. Always consult a financial advisor for advice.

Location