Good luck with your search!
This seems to be a common misnormer from our Canadian friends. I hear this comment from Cananda frequently. As a Canadian homeowner, you are taxed the same as anyone who is not domiciled in Florida (made Florida their permanent residence).
Canada does have a tax treaty with the United States. How you will you use the property, deed or will the property, are all things that should be discussed with a tax accountant prior to taking title for how you take title could have significant impact on your finances in the future. I will be happy to recommend international tax accountants we use both here in Florida and in Canada.
As for the withholding tax, FIRPTA only applies if the purchase is $300,000 or more - again, all things that need to be discussed with your accountant prior to making a purchase.
If you are in the Toronto area, I'd be happy to invite you to one of our seminars May 4th or 5th discussing all the aspects of a Canadian purchasing real estate in Florida.
Carla Rayman, Your Global Agents
Director of International Business Development
Prudential Palms Realty, Sarasota, Florida
+1 941 724 0519
This is not true. You are subject to the same taxes as an American buying a secondary home. Its amazing what goes though the grape vine!
You may want to be aware that the infrastructure for our iirrigation, sewer and water system has been upgraded in many of our single homes from septic and well to city water and irrigation during the last years, and will continue to be upgraded, and these" city" homes have an added assessement to be paid with your taxes.These assesssments are the same if you are a resident or not. Some homes have these added taxes paid off, some partialy depending when the upgrade was done and how much was paid since then.
Make sure that you use a local Realtor who knows the ins and out of our market and our taxes.
In canada there are no capital tax gain if you are selling primiry residence or if you are replacing it with at least the same amount you made in the sale, however, if it is a secondary home you will pay some capital gain to the US governement and that is the same for every non resident:
here is a link which is very useful: http://www.libertytaxcanada.ca/home-seller-selling-income-ta
and happy hunting!
Right Choice Realty LLC
Activerain Local Blog: http://localism.com/neighbor/lloydn
Active Rain Blog: http://activerain.com/lloydn
Website: http://www.mlsouthwestfloridahomes.com Search the MLS in Southwest Florida
If I may be of any further assistance I may be reached at firstname.lastname@example.org
Terry McCarley / Remax Realty Team
Here is a blog I wrote on this subject. http://www.trulia.com/blog/nancy_doyle/2010/03/taxes_on_flor
I have helped many Canadians purchase homes here in fact I closed on one today with a couple from Campbellville Ontario. I would be happy to help you if you are not already working with an agent.
Have a wonderful day,
search Cape Coral Homes with a free listingbook account http://www.nancyd.listingbook.com
John is correct about the property tax exemption, "homestead", that you would not qualify for. There is no special "tax" for Canadians. As a clarification to the first answer, 10% of the purchase price would be withheld at closing (when you sell) until you file a US tax return.
I hope this helps.
Keller Williams Elite Realty
I have sold to at least a dozen buyers from the Ottawa area. They are not subjected to any additional tax. The thing that gets a little miss leading is you would not qualify for the homestead exemption. This is a real estate tax break giving to US citizens making the home they purchase their primary residence. This gives them around a $50,000 break on appraised value which turns out to be a $1,000 a year break on their real estate taxes in Cape Coral.
I have made quite a few good friends from selling to Canadians. We do a lot of boating together in the area.
Feel free to contact me if you have any other questions.
Miloff Aubuchon Realty
4707 SE 9th Place
Cape Coral, FL 33904
In all of the Unites States, not just Florida or Cape Coral there is not a fee to purchase a property if you are not a US citizen. However, when you sell, there is a foreign invester tax of 10%. That is all foreign investers, not just Canadian. What you do even before you buy is get an ITIN, international tax ID number. When you sell, you file a report and get the 10% back. It is really simple. In the end, it does not cost you the tax at all. You can google ITIN and get the address in Philidelphia or the web site to download the file.
Hope this helps!
Debbie Albert, PA
Coldwell Banker Residential