Do I Need to Report Foreign Property on My Taxes? Understanding Canada’s T1135 Requirements

1/29/2025

This one of the questions I get asked the most during tax season: Do I need to report my Foreing Properties?

There is no "easy" way to say it, it's complicated. Yes, you need to report your "specified foreign property" if the total value at any time of the yaer sums more than CAD 100,000

The T1135 form, "Foreign Income Verification Statement", is a tax reporting requirement in Canada for individuals, corporations, and certain trusts who own specified foreign property. It is filed with the Canada Revenue Agency (CRA) to ensure proper reporting of foreign assets and income.

Who Needs to File the T1135?
You must file the T1135 if:

You are a Canadian resident (individual, corporation, or trust).
At any time during the tax year, the total cost of your specified foreign property exceeded CAD $100,000.
This threshold is based on the original purchase cost of the foreign property, not its current market value.

What is Specified Foreign Property?
The following types of foreign assets are considered specified foreign property:

Funds or bank accounts held outside Canada.
Shares of non-Canadian corporations (even if held in Canadian brokerage accounts).
Debt securities like bonds or debentures issued by non-Canadian entities.
Real estate outside Canada (e.g., rental property, but not personal-use property such as a vacation home).
Interest in partnerships that own foreign property.
Trusts or other foreign investments where you hold an interest.
Other property (e.g., intangible property) located outside Canada.

What properties are excluded from "specified foreign property"?

Personal-use property (e.g., vacation homes or vehicles).
Foreign investments held in registered accounts (e.g., RRSPs, TFSAs).

Here is a link with more questions and answers from the CRA website: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/questions-answers-about-form-t1135.html

Contact us today if you need to file your T1135, or you are not sure yet!☕

Download your Foreing Property Report Form

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Author

Dayani Castro is a Cuban-born, proud Canadian bookkeeper and tax consultant known for bringing calm, clarity, and confidence to entrepreneurs who want more than “just bookkeeping.”

She arrived in Canada in 2008 with her daughter, a suitcase, and a determination to create a different kind of future. She wanted independence, opportunity, and stability for her family. Starting over from zero taught her the power of community, clarity, and resilience.

In 2012, she opened her own firm with a simple mission: to help other immigrants and small business owners avoid the confusion and financial stress she once faced. Today, she supports clients across Ontario with reliable monthly bookkeeping, practical tax guidance, and clear explanations that often make people say, “Now it finally makes sense.” Her vision goes far beyond balanced books and always is looking for learning opportunities to improve her skills and help others.

Dayani helps people build the kind of financial confidence that opens new possibilities for their business, their family, and their community.

IMPORTANT: this blog is for informational and educational purposes only.