Tax Requirements and Financing for Canadian Buyers |
HIGHTOWER REALTY Denis Le Marchant-Smith 407-922-3080 |
It is a common belief that Canadian buyers of vacation homes in Florida pay higher property taxes than US citizens. This is not true. All owners of second homes, whether US residents, Canadian nationals or other foreign nationals pay exactly the same property taxes. The only time there is a variation in property tax rates is when a home is used as a primary residence. In this case the owner can claim a modest homestead exemption. Canadian owners of rental homes (but not of homes kept solely for their own use and not generating income) have to file a US income tax return each year. To do this, they have to be registered with the IRS and receive an ITIN (Individual Taxpayer Identification Number). This is in the same format as a social security number. Just because an owner is required to file doesn't mean they will have any tax liability, though. Tax allowances for rental home owners are sufficiently generous that very few owners to pay US taxes. |
Foreign Nationals have very few options for financing the purchase of a vacation home in the US. Fortunately for Canadian buyers, one notable exception is through the Royal Bank of Canada (RBC). RBC has been offering good rates and terms for Canadian buyers in Florida recently, including an option for paired bank accounts in US and Canadian dollars to make day to day management of the business easier and more cost-effective. If you are a Canadian buyer of a short term rental home in the Central Florida area, talk to Chris Wyatt at RBC (email) to discuss your needs. http://mortgage.rbcbankusa.com/chris.wyatt |