Non-Resident Tax

Regulation 105 puts the majority of the withholding and remitting obligations on the payor for the services rendered in Canada. The payor is required to withhold 15% of the payments made. If the required amount is not withheld, the company must pay (on behalf of the non-resident) the payment amount plus interest and applicable penalties.

It is quite common for non-residents / U.S citizens who do not live in Canada to own Canadian property. These non-residents may do this for a variety of reasons; perhaps they want to own a second home in Toronto; or, perhaps, given the price, owning Canadian property presents itself as a terrific investment opportunity.