Do newcomers have to report foreign property in year one?
Zoe Zhou · Licensed Life & Health Insurance Agent, regulated by FSRA (Ontario)
Last reviewed: August 10, 2026 · checked against CRA directly
The short answer
No — and the cost of that property resets on the day you arrive.
Ask me anything — plain answers, no sales pitch.
(General information only. Not tax advice. Check the CRA site or speak to a qualified professional about your own situation.)
Source text: “An individual does not have to file Form T1135 for the tax year in which he or she first became resident in Canada.”
CRA, Questions and answers about Form T1135 · checked August 10, 2026
The part almost nobody leads with
Your cost is the market value on the day you became a resident.
Source text: “For a new resident, the cost amount of foreign property is its fair market value at the time he or she first became resident in Canada.”
CRA, Questions and answers about Form T1135 · checked August 10, 2026
So an apartment bought overseas years ago for the equivalent of $150,000, worth $600,000 when you landed, has a cost of $600,000. Growth before you arrived is not Canada’s to tax.
Which means the valuation on your landing date is worth documenting at the time. Two years later it is very hard to evidence.
The $100,000 line
It is based on cost, not market value, and it aggregates.
CRA’s own example: shares costing $75,000 plus a foreign account holding $35,000. $75,000 + $35,000 = $110,000, so Form T1135 must be filed.
It also applies if you crossed the line at any point in the year — even if you no longer held the property by December 31.
What is excluded
| Property | Reportable? |
|---|---|
| Property used primarily for personal use | No — “primarily” means more than 50% |
| A rental property held for profit | Yes |
| Foreign holdings inside an RRSP or TFSA | No |
| Property used exclusively in an active business | No |
| A life insurance policy from a foreign issuer | Yes |
The registered-account exclusion surprises people who have carefully worried about foreign funds held inside a TFSA.
If you are unsure how to value what you owned on your landing date, tell me what it is and I will tell you what evidence to keep.
