I’m a Canadian with a company in Ireland and want to take some profit form my Irish company and buy some real estate in Canada. I'd like to take advantage of the favourable Euro and Canadian dollar exchange rates and falling housing prices in Canada. Instead of putting cash into a retirement fund it seems it might be a better idea to leverage that money to buy some assets in the country where I’d like to retire? Would love some insights about buying real estate via a LLC. Thank you for your time!
Hello, investor! I am a real estate law clerk, and have worked in various aspects of real estate over the last 15 years.
Answer: Not anymore. Depending where you plan to invest, I know properties are hot in the "greater golden horseshoe", basically Toronto - Niagara, which is the most densely populated areas of Ontario. The government recently imposed a Non-Resident Speculation Tax - if you are not a resident/citizen of Canada, you pay 15% tax on the purchase. Now, even though YOU are not a non-res, your company sounds like it is a non-res of Canada. My suggestion would be to incorporate a company here in Ontario and link it to your Irish holdings, - see tax lawyer and/or accountant - and find a way to keep that tax in your pocket.
I can tell you more about the non-res tax, feel free to follow up with me.
Answered 7 years ago
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