Dual citizen buying property in Canada

[bruce077]

First time posting here.

I am a US tax resident / citizen, and also hold citizenship in Canada, but have never filed taxes in Canada.

Now we wish to purchase a retirement property in Canada. Can anybody fill me in on the basics of how taxation would work, potential pitfalls?

Thanks
bruce

[nelsona]

Merely buying the property would not make you a Cdn tax resident, as long as you spend most of your time in US.
Once you move more permanently, then all your world income would become taxable in Canada (and US). with various credit etc, you would end up paying CDn taxrate.

[nelsona]

Since Cdn taxrate is gererally hogher than US, and not likely to go down, you would want to have as little taxable income once you move as possible, which may mean converting any IRAs 401(K) to Roth versions, and paying the the tax sooner rather than later. Roths are recognized as tax free as in US,
You would also want to make sure trhan any retirement accounts are held in a US brokerage that will accept CDn resident clients -- many do not.

The retirement property gains and income would be taxed in canada regardless of where you are resident.

[wolflinen]

As far as I know, the residential property taxes rate is regular in Canada since you are not buying/renting property for commercial use. If you are still afraid about details in the law field, I suggest you approach the professional estate planning https://www.mcgeewm.com/estate-planning ... al-advisor services for the consultation to be sure that you didn't miss any important parts. I can suggest a couple of lawyer services so you can consult with them about the necessary questions and common risks that you can face here in Canada.