What is Considered Specified Foreign Property?
Bank accounts held outside Canada
Shares of foreign corporations (even if held in a Canadian brokerage)
Real estate located outside Canada (excluding personal-use properties like vacation homes)
Interests in foreign mutual funds
Other foreign investments or securities
Debt owed by non-residents, such as bonds or promissory notes
Foreign insurance policies
What is Not Considered Specified Foreign Property?
Property used exclusively for personal use (e.g., a vacation home)
Assets held within registered accounts like RRSPs, TFSAs, or RESPs
Canadian mutual funds with foreign holdings
Property related to active business income
Why This Matters
Understanding what qualifies as specified foreign property helps you determine whether you need to file a T1135 and ensures you stay compliant with CRA regulations