Understanding Non-Resident Taxes and the Benefits of Property Management

It’s no secret that when it comes to paying taxes in Canada, things can get complicated fast. It can be difficult enough for a Canadian citizen to navigate the taxes they owe each year, let alone for foreign non-residents. The worst part? If you’re a non-resident and don’t provide the Canada Revenue Association (“CRA”) with what it requires come tax season, you can incur heavy fines and penalties. 

Fortunately, the property rental and management professionals at Emerald Management & Realty Ltd. have the necessary expertise to help non-residents of Canada assist with the withholding and remittances required for properties managed in Calgary and surrounding areas. 

To that end, let’s take a look at what non-resident taxes are, what you need to know about them as a non-resident of Canada, and why you should consider purchasing investment property.

An Introduction to Non-Resident Taxes

Before we talk about non-resident taxes, let’s quickly define what non-residency status is. For all intents and purposes, you can consider yourself a non-resident for tax purposes if you aren’t a government-recognized Canadian citizen or live in another country during the tax year. 

If you are certain that your residency status is that of a Canadian non-resident, then you owe non-resident taxes called Part XIII tax or Part I tax. In short, this means that you are responsible for filing these taxes on whatever income you make from business done in Canada. Depending on the kind of income that you receive, your tax obligations, like the type of tax you file, may vary.

It can be incredibly time-consuming to understand which types of income in Canada are subject to which non-resident tax. Investment property owners often opt to engage the services of a property management company or appoint a local agent to collect and submit withholding tax from their rental property. 

We highly recommend that you consult the expertise of your tax specialist in collaboration with a qualified property management companies such as Emerald Management & Realty Ltd. to make sure you understand your tax obligations and which sources of your income are taxable.  While we do not file your taxes for you, your accountant or tax specialist that prepares your annual Canadian tax returns may also be able to assist you assess additional concerns and potential benefits tied to your non-resident status.

Answering Common Questions About Non-Resident Taxes

There is a lot of information to digest about tax obligations that apply to Canadian non-residents, to say the least. We’ve compiled a short list of the most frequently asked questions we receive when it comes to understanding and paying non-resident taxes in Canada.

How do I protect myself as a non-resident or foreign resident?

Benefits of Property Management

It is worth understanding the benefits of owning property if you’re considering purchasing real estate for yourself. At Emerald Management & Realty, we help our clients realize the biggest benefits and profit from our experience that comes with our property management services such as:

If you’re considering how property management services may be right for your real estate needs, then you’ve come to the right place. The professionals at Emerald Management & Realty make it simpler for non-residents to enhance their property investments and maximize profitability.   For more information on how we can help and our cost for NR4 support, contact our team today!

Make your property work for you by getting in touch with our experienced, friendly team today on our website or by calling us at 403-237-8600


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