What Buying a Home on Maui Is Like for Canadians and Other International Buyers

What Buying a Home on Maui Is Like for Canadians and Other International Buyers

Q: Can Canadians and other international buyers purchase property on Maui?
Yes, absolutely. Maui real estate is open to foreign buyers, including Canadians, without restrictions on ownership. However, there are tax, financing, and legal considerations that differ from U.S. citizens.

Q: What makes Maui an attractive destination for Canadian and other international buyers?
Maui offers year-round warm weather, direct flights from Vancouver, Calgary, and Toronto, and a stable real estate market with long-term appreciation. Many Canadian buyers are drawn to second homes, vacation properties, or retirement investments.

Q: What do Canadian and international buyers need to know about taxes and financing?
Foreign buyers face withholding taxes under FIRPTA and HARPTA, higher down payment requirements for U.S. mortgages, and currency exchange considerations.

Q: How can a REALTOR® like Benjamin Finnerty, who specializes in Maui and understands Canadian buyers, help?
Working with an experienced Maui REALTOR® ensures a smooth process, from choosing the right property to navigating tax rules and coordinating with cross-border professionals.

Buying Real Estate on Maui as a Canadian or International Buyer

1. No Restrictions on Ownership

Unlike some countries that restrict foreign ownership, Maui (and all of Hawaii) allows Canadians and other international buyers to purchase real estate outright. Whether it’s a beachfront condo in Kihei, a luxury home in Wailea, or a rental investment property in Kaanapali, international buyers have the same rights of ownership as U.S. citizens.

2. Financing Considerations

• Cash Purchases: Many Canadians choose to purchase in cash to simplify the process.

• Mortgages: U.S. banks may finance foreign buyers, but expect a higher down payment (often 30–40%). Some Canadian banks with U.S. branches, such as RBC Bank, can offer cross-border mortgage options.

• Currency Exchange: Timing your purchase with favorable exchange rates can save significant money.

3. Taxes to Know About

• Property Taxes: Maui’s property tax rates are generally lower than most Canadian provinces, making ownership attractive.

• HARPTA (Hawaii Real Property Tax Act): Withholds 7.25% on the sale of property by non-residents.

• FIRPTA (Foreign Investment in Real Property Tax Act): Withholds 15% on the sale of U.S. property by foreign owners. Both can often be reduced or refunded by filing the correct paperwork.

• Capital Gains: Canadians must report gains to both the IRS and CRA, requiring careful tax planning.

4. Working with Professionals

Because tax and legal requirements differ, it’s essential to work with:

• A Maui REALTOR® who understands international transactions

• A cross-border accountant (Canada–U.S.)

• A Hawaii-based real estate attorney

5. Lifestyle & Market Trends for Canadian Buyers

• Snowbirds: Many Canadians buy condos in Kihei, Wailea, and Kaanapali to escape winter.

• Vacation Rentals: Some condo complexes allow short-term rentals, making them attractive for part-time use and income.

• Retirement Planning: Maui real estate has historically appreciated, making it a long-term wealth strategy.

Example: A Canadian Buyer’s Journey

A Vancouver couple purchased a two-bedroom condo in Wailea for winter escapes. They financed through RBC Bank’s cross-border program with a 35% down payment. By renting their condo short-term when not in use, they offset carrying costs while building long-term equity in Maui’s appreciating market.

Key Takeaways for Canadians & International Buyers

• Maui real estate is fully open to foreign ownership.

• Expect higher down payments and additional tax withholdings when selling.

• Work with Maui-based experts who understand cross-border transactions.

• Maui’s lifestyle, climate, and market stability make it a strong choice for Canadians.

Professional Disclaimer

This blog provides general information for Canadian and international buyers. It is not tax, legal, or financial advice. Buyers should consult licensed professionals for personalized guidance.

Contact REALTOR Benjamin Finnerty

📞 Phone: (808) 481-9748
✉️ Email: benjamin@the808team.com
🌐 Website: benjamin.the808team.com