Canada: Stability, Legal Security, and Risk Spreading

Canada. Tourists love the spectacular landscape and the inhabitants’ open, cordial, and tolerant attitude. But investors also appreciate the stable returns for years of the world’s second-largest country with its continous demographic and economic growth. In addition, the increasing global and geopolitical challenges bring the investors’ desire for international risk diversification to the fore, which Canada as a country with a high level of legal security can take into account.

Apart from liquid investments at large renowned financial institutes, solid property investments are repeatedly enquired about. As it is with any evaluation, here one should not call it “the Canadian market”. This is because here a distinction should be made between the region, economic power, and special trends and segments. In principle, this evaluation is carried out on the basis of the future potential instead of looking at the history and the inventory. A consequent Canadian immigration policy combined with a high ownership rate results in attractive residential property price developments. On the other hand, commercial properties or development projects might be interesting in dynamic sub-markets such as Vancouver, Toronto, or even Victoria. The local Real Estate Board expects an increase in population of about 30,000 by 2024 alone for Vancouver which is for many people the most attractive town at the Pacific with a growing tech scene.

Within the framework of a comprehensive and integrated consultation of appropriate investments, additional current regulatory measures (e.g. “foreign-buyer tax”, “empty-homes tax”…etc.), tax regulations, and the legal requirements of the Anglo-Saxon civil law in respect to testamentary provisions should be considered, so that in the end the investment will fulfil the requirements also in the long term.