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Discussion Starter · #1 ·
Hi Mi situation is as follows

1. Movement from Mexico to Canada (Toronto, ON)

2. Where do I need help? How to rent without tax impact

- I own a apartment in Mexico which I would like to lease (in Mx)
- With that rent ($) I would like to lease an apartment in Toronto

- Apparently If I rent my apartment in Mexico, let's say in 1000 CAD, I would have to pay $263 in TAX (In Mexico) and probably in Canada

Is there anyway to deduct as an expense the rent in Toronto to avoid paying taxes in Mexico/Canada? Idea is that if I can lease my home in 1000, I would like to use that for my new apartment.

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The general rule in these situations (always subject to being altered by a tax treaty between the two countries) is that on real estate revenue (i.e. rentals, buying and selling, etc.) you are liable for taxes in the country where the property is located. So in your case, I would expect that you would pay any applicable taxes (income, property or whatever) in Mexico, and then claim the appropriate tax relief on your Canadian tax forms (either as a tax credit or expenses taken to reduce the amount of the revenue).

But no, there is probably no way to avoid paying any taxes whatsoever on the rental of your property in Mexico. That's why they came up with the old saying, "the only certain things in life are death and taxes."
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