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Canadian buying real estate in US, procedure and taxation

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Is buying real estate in US same for a Canadian as it is for US citizen? What are the differences between a Canadian buying real estate in US versus someone local form there? How does the taxation differs for both? Is it worth it for a Canadian to invest in US or no? 

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Jimmy Lieu
#5 General Landlording & Rental Properties Contributor
  • Real Estate Agent
  • Columbus, OH
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Jimmy Lieu
#5 General Landlording & Rental Properties Contributor
  • Real Estate Agent
  • Columbus, OH
Replied
Quote from @Placeholder Placeholder:

Is buying real estate in US same for a Canadian as it is for US citizen? What are the differences between a Canadian buying real estate in US versus someone local form there? How does the taxation differs for both? Is it worth it for a Canadian to invest in US or no? 

Hi and welcome to BP! Canadians can absolutely buy real estate in the US, and the actual purchase process is fairly similar to what a US citizen would go through. The biggest differences usually come down to financing, taxes, and ongoing reporting requirements. Some lenders may require larger down payments for foreign nationals, and you'll want to work with a CPA who understands both US and Canadian tax rules since rental income, capital gains, and tax filings can get more complex across borders. Whether it's worth it really depends on your goals, but many Canadian investors look south because there are markets that offer stronger cash flow than what they can find locally. One market I'd suggest researching is Columbus. The fundamentals here are very strong with continued population growth, job growth, and major employers expanding in the area such as Intel, Amazon, Google, Honda, Microsoft, and many others. What attracts a lot of out-of-state and international investors is that you can still find properties at relatively affordable price points that produce positive cash flow and, in some cases, come close to or exceed the 1% rule while also offering solid long-term appreciation potential. Before moving forward, I'd definitely recommend speaking with a cross-border tax professional so you fully understand the tax implications specific to your situation. Happy to connect and answer any questions you have!

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