Expat buying a summer cottage in NS

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yangjaeNew Member
Topic author
Posts: 1
Joined: 5 Jul 2009

Expat buying a summer cottage in NS

Post Sun Jul 05, 2009 12:49 pm

Hello, this is my first post here. Hope I can get some sound advice.

I have been living in South Korea for over 4 years with yearly trips to Canada in the summers. I have never filed taxes or declared non-residency.

This summer, I am buying a cottage in Nova Scotia for me to use in the summertime and also rent a little. I am going to have to reveal myself to CRA and want to do it as a non-resident. Of course I plan to pay my property taxes and any capital gains from rental income or if I ever sell the property. I don't want my income taxed by both Korea and Canada. I have strong connections to Korea now, including renting an apartment. I will get a Korean credit card and DL soon and maybe join some clubs or foundations if it helps up my residency there.

What kind of approach should I take with CRA?

I know that many Americans and Europeans own second homes in NS and their only real restrictions are when selling. They have to pay 25% of the rental income and all local property taxes. Should I be treated any differently because I am a Canadian citizen? Do any other Canadians abroad have recreational property in Canada? Should I fill out the residency determination form (nr-73/nr-74) now or later?

Any advice, suggestions or links would be much appreciated! Thanks.
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StevenCanuckAbroad VIP
Posts: 3635
Topics: 2
Joined: 28 Sep 2007
Location: Calgary

Re: Expat buying a summer cottage in NS

Post Mon Jul 06, 2009 9:22 am

I'd give them a call and explain the situation, although they'll probably just tell you to fill in NR-73. In essence, yes you're in the same situation as other people who have a holiday home, but because you're Canadian it does make it more likely the CRA will consider you resident for tax purposes.

If you read through NR-73 it will give you an idea of what they're looking for.
Steve.
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