Can US Citizens Buy Property in Canada? [2025-2026 Guide]

TL;DR: Yes, US citizens can buy property in Canada with no restrictions—but must follow tax rules and may need approval for certain types of land. Key considerations include residency status, financing, and tax obligations in both countries.

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Can US Citizens Own Real Estate in Canada?

Yes, US citizens can freely purchase most types of Canadian property. Unlike some countries, Canada imposes no citizenship-based restrictions on real estate ownership. However:

• Non-residents (including Americans without Canadian residency) face additional steps like getting an Individual Tax Number (ITN) for tax filings.
• Agricultural or recreational land may require provincial approval (e.g., in Saskatchewan or Manitoba).
• Condos and urban homes typically have no extra hurdles.

Evola AI Tip: Use our Immigration Success Predictor to assess how property ownership might impact future residency applications.

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Do US Buyers Need a Canadian Bank Account or Mortgage?

No, but local financing simplifies the process. While US buyers can use American funds or lenders, Canadian mortgages often offer better rates for non-residents. Key facts:

• Down payments: Typically 35% for non-residents (vs. 5–20% for Canadians).
• Approval hurdles: Canadian banks may require proof of US credit history or a co-signer.
• Currency risks: USD-CAD fluctuations affect long-term costs.

According to the Bank of Canada’s mortgage guidelines{:target="_blank"}, foreign buyers must disclose all global income.

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What Taxes Do US Citizens Pay on Canadian Property?

US owners face taxes in both countries:

1. Canada:

   • Property tax: Paid annually to the municipality (rates vary by province).
   • Capital gains tax: 50% of profits taxed if sold (primary residences are exempt for residents).
   • Non-resident speculation tax (NRST): Applies in Ontario (25%) and BC (20%) unless exempt.

2. USA:

   • IRS filings: Report foreign property via Form 8938 if over $300,000.
   • Double taxation treaties: Offset some liabilities (e.g., Canada-US Tax Treaty{:target="_blank"}).

Evola AI Tip: Track currency-adjusted costs with our CLB Converter when budgeting.

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Can Owning Property Help Get Canadian Residency?

Not directly, but it may support applications. Property ownership alone doesn’t qualify you for PR, but:

• Investor programs: Some provinces (like Quebec) link investment to immigration.
• Ties to Canada: Demonstrates commitment in Express Entry profiles (boosts CRS points for "strong connections").

According to IRCC’s official guidelines{:target="_blank"}, residency requires meeting criteria like work experience or family sponsorship.

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Steps to Buy Property as a US Citizen

1. Choose a property type (avoid restricted land).
2. Secure financing (compare USD/CAD mortgage rates).
3. Hire a local real estate lawyer (closing costs are 1.5–4% of purchase price).
4. File taxes in both countries (deadlines: April 15 in US, April 30 in Canada).

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Conclusion

US citizens enjoy a smooth path to Canadian property ownership—just plan for taxes, financing, and long-term goals. Whether you’re investing or planting roots, Evola AI’s tools keep you compliant and confident.

Ready to explore your options? Start with a free CRS score check.