Taxes for Non-Residents

Yes, it is necessary for all non-residents to file a corporation income tax (T2) in the following situations:

• it carried on business in Canada
• it had a taxable capital gain
• it disposed of taxable Canadian property

As a non-resident of Canada, you pay tax on income you receive from sources in Canada. The type of tax you pay and the requirement to file an income tax return depend on the type of income you receive. Generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax.

As a rule of thumb, a non-resident generally pays 25% in taxes. The tax rate can come down to 15% if there is tax treaty between the two countries.

Yes, you can invest in Canada as a non-resident. There are certain restrictions on a non-resident but generally it is easy for non-residents to invest in Canada. A lot of non-residents invest in Canadian real estate.

According to the Canada Revenue Agency, as a non-resident, any income you earn in Canada is subject to Canadian tax. As a rule of thumb, a non-resident generally pays 25% in taxes. The tax rate can come down to 15% if there is tax treaty between the two countries.

You are considered a non-resident of Canada, for income tax purposes, if you normally or routinely live in another country, or if you don't have significant residential ties in Canada and you lived outside the country throughout the year or your stay in Canada was less than 183 days.

Being a non-resident of Canada does not mean that you have to give up your permanent residence or citizenship. You become a non-resident only for tax purposes. Although you must forego your health card and children benefits. But once you are back in Canada both health card and child benefits will be instated in couple of months.

You are a factual resident of Canada for tax purposes if you keep significant residential ties in Canada while living or travelling outside the country. The term factual resident means that, although you left Canada, you are still considered to be a resident of Canada for income tax purposes.

Non-residents are subject to the same land transfer taxes as Canadian residents when they purchase property here. Those buying residential property in or near Toronto will be required to pay Ontario's Non-Resident Speculation Tax, which is 15 per cent of the purchase price.

It is possible to be resident for tax purposes in more than one country at the same time. This is known as dual residence. If you are resident in the UK and another country, you must look at the tax treaty between the two countries to find out where you should pay tax.

You may be able to open a bank account with the proper identification in Canada if you're not a Canadian citizen or if you live in another country. You may need to go to the financial institution in person to open a bank account.