Arizona for Canadians:
Golf, ideal winter weather, first class shopping, amazing resorts and spas, excellent dining, nightlife and events are reasons Canadians are coming to Arizona in record numbers. The recent decline in the US Dollar and reasonably low property taxes are other contributing factors to the Canadian influx.
From Vancouver all the way to Yellowknife we have vast experience with Canadian clients. We can help you with each step of the transaction process and beyond. We appreciate the opportunity to help in your search of your paradise away from home.
Legal Info: There are no restrictions on purchasing real estate in the U.S., nor extra fees or tax implications at the time of purchase and closing.
Mortgages: There are many options for Canadians in purchasing U.S. real estate. Banks and lenders usually require non-residents to have larger down payments than permanent residents. This ranges from 20-25% depending on qualification variables. Qualifying is generally straight forward and would require an interview to discuss credit score, employment, bank statements, assets, liabilities and income.
Tax Info: Foreign nationals are subject to U.S. capital gains taxes on real estate sales or income. The U.S. Internal Revenue Service (IRS) can’t easily go after foreign nationals to collect capital gains tax, so there are special withholding requirements upon the sale of the property. This is referred to as The Foreign Investment in Real Property Tax Act or (FIRPTA). Capital gains and income are taxed at the same graduated rates applicable to U.S. residents. Typically when a non-resident alien sells U.S. real estate, 10% of the purchase price will be withheld for potential taxes. There are exceptions to this and interested buyers should contact a cross-border financial planner or tax advisor.
Currency Exchange: With the continuing strength of the Canadian dollar against the US dollar over the past year, this has been a fantastic opportunity for Canadians purchasing, vacationing and investing in properties in Arizona. Just as you’d use a mortgage broker to get the very best rate for financing, using a currency broker can ensure that you are getting the very best rate for your currency exchange and reduce risk associated with rate fluctuations. Please refer to our pdf in the more info section for further information regarding our currency broker partnership.
Through improved awareness of financial, tax, and estate-planning implications between the two countries, Canadians can make the most of the dual-residency lifestyle.