Commercial Property for Sale in Canada: Retail, Offices and Mixed-Use

Non-Canadians can generally buy commercial property, but residential components such as multi-unit apartments of a certain size, or mixed-use buildings, can fall under the restriction depending on the number of units, and sale of Canadian real estate triggers withholding and reporting obligations for non-residents. Tax planning and entity structure matter. Discuss with a Canadian lawyer and accountant, and see the Canada buying guide.

• Rent roll and leases.
• Operating statements for at least three years.
• Environmental site assessment (Phase I).
• Zoning and permitted uses.
• Building condition report.
• Property taxes and recoverable costs.
• Financing: see Canada financing.

Buying through a Canadian corporation or limited partnership is common, and it affects how rental income is taxed, how GST or HST is handled, and how sale proceeds are repatriated. Non-residents who sell Canadian property face withholding on the proceeds until a clearance certificate is obtained from the tax authority, which can tie up cash for weeks. Land transfer taxes apply to commercial transfers in most provinces and can be a few percent of price. Ask an accountant who handles cross-border clients to model the full cost before you sign, and keep records of capital improvements for the eventual sale. Commercial leases in Canada are generally landlord-friendly compared with some European countries, with triple-net leases common for retail and industrial space.