gingermartin

Hi All,

I'm thinking about buying some property in Canada with the hope of renting it on a yearly lease. has anyone had any experience of this?

Does anyone know any of the legal/Tax implications of this for someone who does not have PR.

Hope you can help

Martin

ACL

I believe that you would claim the income on this on your UK tax return under the section regarding Worldwide Income. However...as you would probably need to set up a Canadian Bank account to receive payment for rental and to pay for a property manager to keep an eye on things (if you are in the UK)you may also be able to alternatively fill in a Canadian Tax return (you will need a Social Insurance Number).

It is probably best to get these facts from the horses mouth and e-mail the revenue in Canada and put to them your hypothetical question.

We looked into buy to rent for once we become permanent residents (god willing one day!). In NS the banks don't do a scheme for business as 'buy to let'...it isn't recognised (we ll not at www.bmo.com) ...you just have to go for a sraight forward mortgage based on your current income rather than a business plan showing the revenue you would expect from yearly rental

Velouria

dont know how much this well help! but a couple of years ago, i looked into buying property in calgary (whilst still in the uk) and renting it out. there were a couple of companies i contacted with regards to setting up a mortgage. one was quite helpful (although, i cant remember the name!!! ) i had to put down a fair deposit (minimum 35%) but the mortgage was with a canadian bank, so if i ever decided to move back, the remaining mortgage payments would be in canadian dollars. i never ended up going through with it in the end.

but im also not sure what the legal and tax implications would be. it should only be counted as extra income for the country you are resident in... but then im not a tax advisor.

gingermartin

Thanks for your help.

I (hopefully) won't be needing a mortgage to finance the purchase of the property.

I'm surprised that there arn't more "letting agents" out there. Perhaps this is a niche market.

Martin

hot wasabi peas

I own property in Canada and rent it out. I claim the rental income on my Canadian tax returns and pay tax on it. How you claim the income will likely depend on which country you are deemed a resident of, or rather, which country is your main residence. I suspect you'd have to claim the income, like others have said, as worldwide income on your UK tax return - but I'm no expert and easily confused by tax issues!

Property owners are also responsible for paying property tax which is paid to the municipality where the house is located.

Though I'm Canadian, I'm quite certain you don't have to be a Canadian citizen or permanent resident to own revenue property in Canada.