Non-Resident of Canada

When do non-residents pay withholding tax?

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Non-residents who own a nightly rental property in Whistler pay 25% of the gross revenue monthly to the Government of Canada. This is called Withholding Tax.

The 25% holdback on gross revenue can be reduced to 25% of net income after expenses when the non-resident and the rental manager co-sign the NR6 form which is submitted to the CRA for approval. A phase 2 property has a blanket NR6.

Actual income tax is determined when the income tax return is filed by a Whistler accountant, and assessed by the CRA.

How easy for a non-resident to get a mortgage?

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It’s the same process for a non-resident buyer as a resident buyer to get a mortgage in Canada. The main difference is signing the mortgage documents. Now some banks send you the documents to get notarized by a lawyer in your area.

Other Banks add a condition in the approval document that all borrowers must be at one of their Canadian branches to sign the mortgage documents at the closing date. This is something to be considered when adding a family member to the title as part of the assignment term. Is everyone able to be in Canada to sign the required mortgage documents?

What is Witholding Tax on the sale of property?

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When a non-resident decides to sell their property, it is important to consider the tax implications. This post provides an overview of the complex process, it is a simplified version. If you are selling your property, it is recommended you read the full version on the Non-Resident: Selling page. Note: this blog was written by a realtor, not a tax accountant. The purpose of this post is to give you a sense of what you will need to know when you decide to sell your property. It is always recommended to speak with your Canadian accountant.

Is re-financing an option for non-residents?

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When a non-resident decides to buy a property in Whistler, it is important to make a decision about financing when writing the offer. If a non-resident Buyer says that it would be simpler to pay cash for the property and then refinance, that is not an option with Canadian Banks.

The reason is that the Canadian bank does not know the source of the original funds used to buy the property. Despite, you the Buyer, offering the Bank every document on the purchase of the property, no Canadian Bank can refinance your property. To do so would be in contravention of FINTRAC.