Tuesday, March 15, 2011

NRX Taxes

Residential property is a good investment and can produce reliable, cash flow. It has to be bought wisely, and managed intelligently, but so long as it's in a desirable area it will always generate revenue.

Canada is a safe place to buy income property. Legal immigration status is not necessary to buy real estate in Canada. All you need to do to buy rental property in Canada is have good ID, and have the funds to pay for it.

Mind you, if you're a non resident for income tax purposes, you will have to pay non-resident tax.

First things first. "Canadian resident for income tax purposes" is a tax status, not your immigration status. Someone who files a tax return on their income in Canada is likely a Canadian resident for income tax purposes. It's possible for a person to live in another country and still remain a resident of Canada for tax purposes. In my experience, though, most offshore property owners in Canadian real estate pay income tax where the really live. The result is that they are also non-residents in the opinion of the Canadian Revenue Agency (CRA), so long as they receive income from Canadian residential real estate.

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