Here is some information on tax advantages for Canadians owning property in Mexico (contact us if you are American).
- Interest from a Mexican mortgage is tax deductible
- If you want to move here you can claim Canadian Citizen non resident status and pay 0-15% flat taxes to Canada!
- Canada and Mexico have a tax treaty – you will never pay double come taxes if you are renting your place out (Ex: taxes paid on rental income in Mexico can be listed as a Foreign Tax Credit on your Canadian taxes)
- Subtract your expenses from your Mexican property and report a net loss on your tax return to reduce your Canadian taxes
- For those who wish to stay part of the year in Mexico, part in Canada and rent out their property while away, you may be able to write off 1 trip to Mexico a year to check on your property (if you are managing the rental)
Please note: this is for informational purposes only. It is not guaranteed to be accurate, we are not accountants and we are happy to connect you with an international tax accountant that is certified, and can answer your questions and liaise with your accountant. Contact us to be connected with an accountant to learn more.