Hello Mr. XXX,
I hope you are well. Rental income earned in France is also taxable in Canada. The tax treaty mentions that it is taxable in France but does not mention that it is only taxable in France. Canada taxes worldwide income by default: you must therefore declare this income in both countries.
Canadian law provides that taxes paid in the source country (in this case, France) are deductible against our tax in Canada (and Quebec). Therefore you will pay in total only the highest tax of both countries. If you pay more tax in Canada than in France, you will have an extra to pay in Canada. If the tax in France is higher, you will already have paid your dues in France and nothing to pay in Canada.
Finally, there is a small technical detail: taxes are to be declared in Canada before those in France. So there are technical solutions for this situation and we can advise you in our normal process of filing your tax return, these points are all addressed anyway, rest assured.
For more information, do not hesitate to make an appointment for a consultation with one of our accountants.
Regards,
Nicolas Godbout
