Do Canadians Abroad Need to Report Foreign Assets?
Yes — if you’re a Canadian tax resident and own foreign property worth more than CAD 100,000, you must report it annually using Form T1135 (Foreign Income Verification Statement).
👉 Official CRA info:
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1135.html
💡 Key Points for Expats
- Applies to bank accounts, shares, rental property, and crypto held outside Canada.
- Penalty: Failing to file T1135 can result in a $2,500 annual fine (plus interest).
- Threshold: Only required if total foreign assets exceed CAD 100,000 (cost base, not market value).
- Foreign income: Report all foreign interest, dividends, and capital gains even if tax was already paid abroad.
⚖️ Examples
1️⃣ You have a bank account in Hong Kong and a rental apartment in Australia → must report both if total exceeds CAD 100,000.
2️⃣ You invest in U.S. stocks via a U.S. brokerage → report dividends and gains.
🚫 Common Mistakes
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Assuming “foreign” means “non-Canadian currency” — it’s about location of the asset.
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Forgetting to include jointly held accounts.
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Failing to track cost base properly when exchange rates fluctuate🦊 File T1135 with your Canadian return — even if no foreign income was earned.
🦊 Felix’s Quick Tips
🦊 Keep a spreadsheet of all accounts and their cost bases in CAD.
🦊 Use CRA’s yearly exchange rate to convert balances.
🦊 Consider tax treaty credits for foreign taxes paid on interest or dividends.
🧭 See Also
Residency Explained → https://xpatwealth.com/expat-tax-residency-canada/
Foreign Income Rules → https://xpatwealth.com/canada-expat-foreign-income/
Departure Tax Explained → https://xpatwealth.com/expat-departure-tax/
Free Expat Tax Resources → https://xpatwealth.com/free-resources/
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