Can you use the Home Buyers’ Plan to buy a foreign property? Mar 20th

Not sure how to make a savings plan? Read on…

Latest News

What types of tax-free savings accounts (TFSAs) exist? + MORE Nov 20th

A tax-free savings account (TFSA) is a fantastic way to earn money on your savings, without having to pay tax on those earnings. Registered by the federal government, TFSAs are available to Canadians aged 18 and older. Unlike a registered retirement savings plan (RRSP), you cannot deduct contributio.... More »

What new bare trust tax filing rules mean for Canadians Mar 12th

Ask MoneySense I would like some clarification on the T3 tax return for the year 2023. Whom does this rule apply to and can you clarify whether all the persons on the account have to complete T3 tax returns? —Chander Some people set up trusts that come into effect during their lives or upon.... More »

How to plan for retirement when you have no pension + MORE Sep 10th

In years past retirement planning was relatively easy. Fifty years ago, more than half of working Canadians, and an even higher proportion of men, could fall back on a corporate or union pension plan as their main source of income in retirement. That’s no longer the case. Just 38% of paid work.... More »

25 timeless personal finance tips from MoneySense + MORE Jan 30th

To help celebrate MoneySense’s 25th anniversary, we are republishing (and updating) an article from the June 2014. The editors collected some timeless financial advice and money tips from the archives. Editor- and expert-approved, and fit for 2023 and beyond. 1. Pay yourself first .... More »

Tax due dates, credits and more: Your 2024 income tax return guide + MORE Mar 4th

Doing your own taxes? Prepping your documents for a tax professional? Either way, welcome to the MoneySense guide for personal income taxes, your information hub for filing your 2024 return (bookmark it now). We will be updating it frequently, as information becomes available and deadlines approach..... More »

Can you use the Home Buyers’ Plan to buy a foreign property?

– moneysense.ca

Ask MoneySense
I am looking to use my RRSP to buy a vacation property in Portugal. How much can I take out tax free?—Andy

Tax implications of buying property in another country

I think you are referring to the Home Buyers’ Plan (HBP), Andy, when you ask about a tax-free registered retirement savings plan (RRSP) withdrawal. The HBP allows a tax-free withdrawal from your RRSP if you are a first-time home buyer purchasing an eligible home. HBP participants can withdraw up to $35,000, as can their spouse or common-law partner, for a total of $70,000.

You are considered a first-time home buyer if neither you nor your spouse or common-law partner owned a home that you occupied in the current year or the four previous years. However, in order for a property to be considered a qualifying home, it must be located in Canada. So, your Portuguese vacation property is not going to qualify for the HBP.

If you were to withdraw from your RRSP to buy this property, Andy, the withdrawal would be added to your other income for the year and be fully taxable…

Continue Reading On moneysense.ca »

Banks.ca constantly finds the best and most current Savings information available in Canada.

Share