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Can a Canadian Buy Property in the USA? Complete Guide
Canadians can buy US property freely — no restrictions. But 15% FIRPTA withholding applies at sale, US estate tax hits at $60,000 for non-citizens, and Canadian mortgages don’t transfer to the US. Own Luxury Homes® International Buyer Verification Standard™ specialists in every major US market.
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Can a Canadian Buy Property in the USA? Complete Guide
Yes
Canadians can buy US property with no special restrictions or government approval required
15%
FIRPTA withholding on gross sale price when a Canadian sells US property
25%
Typical down payment for Canadian foreign national mortgages
No Limit
No cap on how much US property a Canadian can own
Canada is the largest source of foreign buyers of US real estate. Canadians purchase more US property than buyers from any other single country — driven by Florida’s winter climate, the absence of any US ownership restrictions, and a cross-border lifestyle that is genuinely unique globally. There is no application, no government approval, and no ownership cap. A Canadian can walk into a US closing and buy property the same day. What they need is a specialist agent who understands the cross-border tax mechanics, FIRPTA withholding at sale, Canadian mortgage limitations in the US, and the FBAR and estate tax traps that catch uninformed buyers.
Own Luxury Homes® — International Buyer Verification Standard™
Own Luxury Homes® specializes in representing international buyers of US real estate. Our International Buyer Verification Standard™ confirms every agent’s cross-border transaction experience, FIRPTA knowledge, foreign national mortgage familiarity, and currency transfer protocol before assignment. No dual agency. Full buyer representation. Contact us now.
The Key Issues Every Canadian Buyer Must Understand
(1) You can buy freely. The US has no ownership restrictions on Canadians. No CFIUS review for residential property. No state-level restriction. Full fee-simple ownership available immediately. Note: Some US states have passed restrictions on agricultural land owned by citizens of certain countries — Canada is not on any restricted list.
(2) FIRPTA applies when you sell. When a Canadian sells US real property, the buyer must withhold 15% of the gross sale price and remit it to the IRS as a prepayment of tax. On a $500,000 property, that is $75,000 withheld at closing. A withholding certificate can reduce this if actual tax liability is lower. Ownership structure chosen at acquisition significantly affects FIRPTA treatment. See: FIRPTA for Canadian Sellers.
(3) US estate tax applies at $60,000. Non-US persons who die owning US real estate face US estate tax at rates up to 40% with an exemption of only $60,000 — versus $13.61 million for US citizens. Canada’s tax treaty with the US provides some relief but does not eliminate the exposure. Ownership structure must be planned before purchase, not after death.
(4) Canadian mortgages do not transfer to the US. RBC, TD, Scotiabank, and BMO all have US banking operations that offer Canadian-friendly cross-border mortgages. These are the fastest path to US financing for most Canadian buyers. See: US Mortgage for Canadians.
(5) The CAD/USD exchange rate is a real cost. A 10% move in CAD/USD on a $500,000 purchase is $50,000 Canadian. Currency risk is the most underestimated cost in cross-border real estate. See: CAD/USD Currency Strategy.
The US-Canada Tax Treaty
Canada and the United States have a comprehensive tax treaty that affects FIRPTA withholding, estate tax exposure, and rental income treatment for Canadian property owners. Key treaty benefits: increased estate tax exemption for qualifying Canadians based on worldwide estate value, reduced withholding rates on rental income, and treaty tie-breaker rules for dual-resident situations. Own Luxury Homes® connects buyers with US-Canada cross-border tax specialists before purchase closes.
Most Popular US Markets for Canadian Buyers
| Market | Why Canadians Buy Here | Typical Entry Price | Own Luxury Homes® Coverage |
|---|---|---|---|
| Florida (Sunbelt) | Winter climate, no state income tax, direct flights from Toronto/Montreal | $300K+ | Full coverage |
| Arizona (Scottsdale/Phoenix) | Winter climate, lower price point than Florida, dry heat | $400K+ | Full coverage |
| Florida (Fort Lauderdale/Palm Beach) | Boating, luxury, proximity to Miami | $500K+ | Full coverage |
| Las Vegas | No state income tax, entertainment, lower cost than coastal markets | $350K+ | Full coverage |
| Florida (Naples/Southwest) | Gulf Coast, lower density, retiree-friendly | $400K+ | Full coverage |
| South Carolina (Hilton Head/Myrtle Beach) | Golf, Atlantic Coast, lower price points | $300K+ | Full coverage |
All Canadian Buyer Guides
- US Mortgage for Canadians: RBC, TD, Scotiabank US Programs and Foreign National Options
- FIRPTA for Canadian Sellers: The 15% Withholding Explained
- CAD to USD: Currency Strategy for Canadians Buying US Property
- How Long Can Canadians Stay in the USA? The 182-Day Rule Explained
- US Estate Tax for Canadians: The $60,000 Trap and Treaty Relief
- Best Real Estate Agent for Canadian Buyers in the USA
Ryan Brown, Principal Broker & CEO — Own Luxury Homes®
“Canadians are my most consistent cross-border buyer. They understand US real estate. They have often already stayed in the market for years before buying. What they miss, almost universally, is the FIRPTA withholding they face at sale and the estate tax exposure if they die owning the property outright. I tell every Canadian buyer: the purchase is simple. The ownership structure is where the work happens.”
Own Luxury Homes® — Canadian buyer specialists in every major US market. International Buyer Verification Standard™. Cross-border tax, FIRPTA, and foreign national mortgage expertise. Contact us now ›
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)