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*Ostroff, Fair and Company>>>Canada Taxes

Do you need to pay taxes on income earned outside the country if you own property in Canada?


I am a non resident, thinking of buying property in Canada for when I return, and I am wondering if I will need to pay taxes on income earned outside Canada if I own property here.

Canadian income taxes are based 100% on residency. If you are not deemed to be a resident, then you don't pay income taxes - as simple as that.

From your description, it does not sound like you will be doing anything that would make Canada Custems and Revenue even consider deeming you to be a resident.

So unless you satisfy the "183 day rule", you will not have to pay income taxes. Here is a link to the official description:
http://www.cra-arc.gc.ca/tax/nonresident...

Now property taxes you will have to pay those, of course! Source(s): I am a Canadian and lived in the US for four years.
Even a Non-resident has to pay Income Tax on the income earned, if any, on the property owned in Canada.

Of course, there is a basic exemption level on which there is no tax.

Lastly, yes, you do pay property taxes on the property , if applicable.

In the US you would have to pay taxes on income earned outside of the states.
I believe that as long as you have declared non-residency, even if you have property, you are not required to pay taxes. However keep in mind (as I think you already know) there are rules about how many days you can stay in the country per year as a non-resident (I think it might be 180?)

I am a "resident" of Canada but I work abroad...I never declared non-residency out of fear that I may need to return in an emergency situation and need health care...however I have no property or other assets in Canada, so I don't usually pay too much in taxes. If I owned a car or a house or if I had a bunch of bank accounts, I would.

Good luck!
I WOULD THINK THAT YOU WOULD HAVE PAY TAXES FOR PROPERTY IN CANADA IF THERE IS ANY BUT BE PAID TO CANADA.
I THINK YOU HAVE PAY TAXES ON MONEY EARN IN THE US WHICH YOU HAVE IN OUTSIDE BANKS.
I DON'T REALLY KNOW
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