Like many countries. Canada taxes non-residents who realize gains on real estate located within its borders[1]. This will be true whether the real estate is capital property that is held for the purposes of earning from rental or a business; capital property held for personal use; or inventory of a business (e.g. where it… Continue Reading
Category Archives: Foreign investment in Canada
THE TAX-EFFICIENT WAY FOR FOREIGN BUYERS TO ACQUIRE CANADIAN CORPORATIONS
Envision a situation where a foreign corporation (“Forco”) buys all of the shares of a private Canadian corporation (“Canco”) for $10 million. What happens if Canco generates profits, and Forco would like to use those profits to recover the $10 million cost of its investment in Canco? Can Forco just take funds from Canco up… Continue Reading