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Buying Property in Hawaii as a Canadian: Visas, Taxes, Financing & Rentals

Important: This guide is for general educational purposes and is not legal, tax, immigration, lending, or investment advice. Rules and individual circumstances vary. Todd can connect you to the relevant authorities and qualified professionals before acting.

Buying property in Hawaii can give you a place to escape Canadian winters, spend time with family, or invest in one of the world's most desirable real estate markets. But purchasing U.S. real estate as a Canadian involves more than finding the right home. You need to understand immigration rules, U.S. and Canadian taxes, financing requirements, rental regulations, ownership costs, and the rules that apply when you eventually sell. Maui adds another important consideration: whether a property can legally be rented short-term may significantly affect its value, income potential, and resale prospects.

Which type of buyer are you?

1. I want to live in Hawaii: You can generally buy property without a green card. However, property ownership does not grant permission to live or work in the United States indefinitely. You'll need to understand immigration pathways, employment authorization, U.S. and Canadian tax residency, healthcare, and the financial consequences of moving.

1. I want a second home for vacations: Many Canadians own Hawaii property while continuing to live and pay taxes in Canada. The key questions are how long you can visit, whether your travel pattern affects U.S. tax residency, how to finance the purchase, and how to manage the property while you're away.

1. I want to rent the property when I'm not there: You need to distinguish between a legal short-term vacation rental and a long-term residential rental. The property must qualify under applicable zoning, county regulations, permits, and condominium or homeowners association rules. You must also account for U.S., Hawaii, and potentially Canadian taxes on rental income.

1. I want an investment property: In addition to rental eligibility and financing, evaluate operating expenses, depreciation, tax reporting, currency fluctuations, resale restrictions, and the tax consequences of selling.

Let's walk through the considerations.

1. Can Canadians buy property in Hawaii without a green card or visa?

Generally, yes. U.S. law does not ordinarily require a foreign buyer to have a green card or U.S. visa simply to own real estate. Canadian citizens, Canadian permanent residents, and other foreign nationals can generally purchase property, subject to applicable laws and restrictions affecting the particular property or ownership structure.

However, three separate questions must be considered:

1. Property ownership: Can you purchase and own the property?
2. Immigration: Can you enter the United States, and for how long?
3. Tax residency: Where are you considered a tax resident, and which tax returns must you file?

These questions have different answers. Buying a home does not automatically grant a visa, permanent residency, or permission to work in the United States. For entry requirements, see the U.S. Department of State's guidance on citizens of Canada and Bermuda.

2. If you want to live in Hawaii

Buying property and moving to Hawaii are two different processes.

Do you need a green card?

You do not need a green card merely to own property. To live permanently in the United States, however, you generally need lawful permanent residence or another qualifying immigration status. Depending on your circumstances, possible pathways may involve:

1. Family-based immigration.
2. Employment-based immigration.
3. Certain investor immigration programs.
4. Other qualifying immigration categories.

Buying a house is not itself an immigration investment program. Simply purchasing real estate does not qualify you for a green card. If your goal is to move permanently, consult a U.S. immigration attorney and review the U.S. Citizenship and Immigration Services website before structuring a purchase around that plan.

Can you live in Hawaii on a visitor entry?

Canadian citizens generally do not need a nonimmigrant visa for ordinary tourism visits, although exceptions apply. Entry remains subject to U.S. immigration rules, and the authorized period of stay depends on the applicable admission conditions. A visitor entry is not a substitute for permanent residency. Repeated or extended visits can also raise questions about whether your activities are consistent with visitor status. Do not assume that owning a home entitles you to stay for six months every year.

What about working remotely from Hawaii?

Do not assume visitor status authorizes you to work remotely simply because your employer or clients are in Canada. Permitted activities depend on the nature of the work and your immigration status. If you intend to work while physically present in Hawaii, obtain immigration advice specific to your circumstances.

U.S. tax residency when moving

U.S. tax residency is separate from immigration status. Depending on your circumstances, you may be treated as a U.S. tax resident through lawful permanent resident status, the substantial-presence test, or other applicable rules. The IRS substantial-presence test generally requires at least 31 days of presence in the current year and a weighted total of 183 days over three years:

1. All qualifying days in the current year.
2. One-third of qualifying days in the previous year.
3. One-sixth of qualifying days in the second preceding year.

Exceptions and treaty provisions may apply. Some people may qualify for the IRS closer-connection exception, subject to specific conditions and filing requirements. A Canadian moving to Hawaii must also determine when Canadian tax residency ends, if it ends at all. The CRA's guidance on determining residency status explains the importance of residential ties and departure circumstances.

3. If you want a second home in Hawaii

For many Canadian buyers, this is the simplest ownership scenario: maintain a home and tax residency in Canada while visiting Hawaii for part of the year.

Is there a 180-day limit?

There is no universal rule that says a Canadian homeowner can spend exactly 180 days in Hawaii without consequences. Three different concepts matter.

1. Immigration and visitor admission: Your authorized stay depends on the applicable entry and admission rules.
2. U.S. tax residency: The substantial-presence test uses a weighted three-year calculation, rather than a simple 180-day annual limit.
3. Canadian tax residency: Canada considers residential ties and the overall circumstances of your situation. Spending less time in Canada does not, by itself, establish that you have ceased to be a Canadian tax resident.

Keep accurate records of your days in the United States and Canada, including travel dates.

Will owning a Hawaii home affect your Canadian taxes?

Owning a personal-use vacation home does not, by itself, ordinarily make you a U.S. tax resident. However, rental income from the property can create U.S. and Hawaii filing obligations.

If you remain a Canadian tax resident, you generally must report your worldwide income, including relevant net rental income from Hawaii, subject to Canadian tax rules and applicable foreign tax credits.

A personal-use vacation property is generally excluded from Form T1135 reporting when it qualifies as personal-use property. A property held primarily to earn rental income may be treated differently.

The CRA's Form T1135 questions and answers explain which foreign properties are reportable. The form generally applies when the aggregate cost amount of specified foreign property exceeds CAD $100,000 at any time during the year, subject to exclusions and other requirements.

What if I spend more time in Hawaii every year?

Longer stays may affect your U.S. tax residency calculation and raise questions about Canadian residency. Depending on your circumstances, you may also need to consider the Canada–U.S. tax treaty.

Read the Canada–U.S. income tax treaty alongside professional advice if you may be considered resident in both countries.

4. Renting your property while you're away

Before purchasing a property that you intend to rent, establish which rental model is legally available.

Short-term vacation rentals

Hawaii generally treats rentals of fewer than 180 consecutive days as transient accommodations for its transient accommodations tax framework. Short-term rentals may require tax registrations, tax filings, and compliance with county land-use rules. The property must also be legally eligible for vacation-rental use. On Maui, this last point is particularly important.

Maui's changing short-term rental regulations

Maui County enacted Bill 9 as Ordinance 5909 on December 15, 2025. The County's official Bill 9 announcement and Ordinance 5909 information describe the phaseout of certain transient vacation rental uses in apartment-zoned properties, including some properties historically associated with the Minatoya list. Under the enacted ordinance, the phaseout deadlines are:

1. December 31, 2028: Affected apartment-zoned properties in the West Maui Community Plan Area.
2. December 31, 2030: Affected apartment-zoned properties in the remainder of Maui County.

The ordinance provides exceptions for certain uses, including qualifying timeshare units and uses permitted under a variance or otherwise permitted by law. The precise application depends on the property and its legal status.

The County has also considered zoning pathways that could allow certain affected properties to continue vacation-rental operations under hotel zoning. A proposed or recommended zoning change should not be confused with final approval for an individual property.

Note: Slow Maui gives you a view of Zoning and Minatoya list properties on the map. On the map, select Display at the bottom, then turn on Zoning. We also document short-term-rental status for each neighborhood. Still, you should talk to Todd and verify this information before acting.

Before purchasing a condo for vacation-rental income, verify its current legal status and future eligibility. Existing online listings, a seller's rental history, or a verbal assurance are not substitutes for reviewing the applicable law and property records.

Useful starting points include:

1. Maui County's official website.
2. Maui County's planning and zoning information.
3. Maui County's legislation portal, for ordinances and legislative records.
4. The property's specific zoning, permit history, and applicable condominium or homeowners association documents.

What should you verify before buying?

For any Maui property intended for vacation rentals, confirm:

1. The zoning district and permitted uses.
2. Whether the particular unit has the necessary approvals or qualifies for an exemption.
3. Whether the ordinance's phaseout provisions apply.
4. Whether the condo association or HOA permits the intended rental activity.
5. Whether the property has the required tax registrations and operational approvals.
6. Whether any anticipated rezoning has actually been approved and applies to the property.

A property can be legally owned and occupied by its owner without being eligible for short-term rentals.

Long-term residential rentals

A long-term rental may be a better fit if the property is not eligible for vacation rentals or if you prefer more predictable occupancy.

Hawaii generally classifies residential rentals of 180 consecutive days or more outside its transient accommodations tax framework. Long-term rental income is still generally subject to Hawaii income tax and general excise tax, unless an applicable exemption or other rule applies.

You should also review:

1. Landlord-tenant obligations and lease requirements.
2. Condo association and HOA restrictions.
3. Property management fees and maintenance responsibilities.
4. Insurance coverage for rental use.
5. U.S. federal, Hawaii, and Canadian income tax reporting.

See the Hawaii Residential Landlord-Tenant Code for landlord and tenant requirements.

Short-term versus long-term rental

Consideration Short Term Rental Long Term Rental

Use Vacation Residential Tenancy

Hawaii TAT Generally applies Not applicable to rentals over 180 consecutive days

Hawaii GET Generally applies Generally applies

Zoning Hotel (Apt Minatoya) Residential

Management Frequent turnover Property manager

Regulatory risk Property specific Landlord/tenant requirements

The rental duration does not independently determine whether a property is legally permitted to operate as a vacation rental.

Hawaii rental taxes and registration

According to the Hawaii Department of Taxation's residential rental guidance, rental income from Hawaii real estate is generally subject to Hawaii income tax and general excise tax (GET). Qualifying transient accommodations are also subject to transient accommodations tax (TAT).

Short-term rental operators generally need to:

1. Register for the applicable GET and TAT licenses.
2. Report rental income on the appropriate Hawaii income tax return.
3. File applicable GET returns and TAT returns.
4. Comply with advertising and license-number requirements.
5. Check applicable county-level transient accommodations taxes.

Long-term rental operators generally need a GET license and must report rental income, although the precise filing obligations depend on the circumstances.

Registration and filing are available through Hawaii Tax Online.

If you use a property manager or booking platform, do not assume that it takes over all your tax obligations. The owner remains responsible for ensuring that applicable taxes are correctly reported and paid. Hawaii's Rental Collection Agreement guidance also describes reporting obligations for third-party rent collectors.

5. Taxes when owning a Hawaii property

A Canadian owner may have tax obligations in more than one jurisdiction. The exact result depends on residency, ownership structure, personal use, rental activity, and other facts.

U.S. federal income tax

Rental income from U.S. real estate generally creates U.S. tax considerations for a foreign owner. The treatment can depend on whether the rental is treated as a passive investment or a U.S. trade or business, and on applicable elections and deductions.

Potentially relevant items include:

1. Gross rental income and allowable expenses.
2. Mortgage interest and property taxes.
3. Repairs, management fees, and insurance.
4. Depreciation and potential depreciation recapture.
5. Taxpayer identification and filing requirements.

The IRS provides guidance on rental income and expenses and U.S. tax obligations for nonresident aliens. A nonresident owner may need an Individual Taxpayer Identification Number (ITIN). See the IRS ITIN application guidance.

Hawaii income tax and rental taxes

Hawaii generally taxes rental income from Hawaii real property. Rental operators may also have GET obligations, and short-term accommodation operators may have TAT obligations.

The owner remains responsible for ensuring that required taxes are correctly reported and paid, even when a property manager handles the paperwork.

Start with the Hawaii Department of Taxation's rental guidance and its individual income tax information.

Canadian income tax

If you remain a Canadian tax resident, you generally report worldwide income, including rental income from Hawaii.

Foreign tax credits may be available to reduce double taxation, subject to the applicable rules and limitations. Currency conversion and the timing of income and expenses can also affect the Canadian calculation.

The CRA's foreign income guidance and its guidance on the foreign tax credit are useful starting points. If you become a nonresident of Canada, the rules change and should be reviewed before your departure.

Foreign property reporting

Form T1135 may apply to Canadian tax residents holding specified foreign property with an aggregate cost amount exceeding CAD $100,000 at any time during the year.

Qualifying personal-use property is excluded, but a property held primarily for rental or investment purposes may be reportable. This is an information-reporting obligation distinct from the requirement to report taxable income.

See the CRA's Form T1135 guidance.

Estate planning

U.S. real estate owned by a Canadian who is not a U.S. citizen can create U.S. estate tax considerations. Ownership through a trust or company may change the analysis, but no structure should be assumed to eliminate tax or simplify an estate automatically. Review the IRS estate tax guidance for nonresidents who are not U.S. citizens and the Canada–U.S. tax treaty. Consult a cross-border estate-planning professional before deciding how to hold title.

6. Financing a Hawaii property as a Canadian

Canadians can purchase property with cash or seek financing from a lender willing to work with foreign-national borrowers.

U.S. mortgage financing

Some U.S. lenders offer foreign-national mortgage programs. Requirements vary, but may include:

1. A larger down payment than a conventional domestic mortgage.
2. Proof of Canadian income and assets.
3. Canadian credit history or other evidence of creditworthiness.
4. Bank statements and source-of-funds documentation.
5. Cash reserves and property appraisal.
6. A higher interest rate or additional lender fees.

Financing terms depend on the lender, the buyer's financial profile, and whether the property is a primary residence, second home, or investment property.

Ask lenders specifically whether they accept Canadian borrowers, Canadian income, and the type of property you intend to buy. Obtain written estimates of the down payment, rate, fees, and reserve requirements.

Can you use a Canadian mortgage?

A Canadian lender may be able to lend against Canadian assets or property, but a conventional Canadian mortgage generally does not automatically finance a Hawaii property.

Discuss the proposed collateral and lending structure with your financial institution before making an offer.

Currency risk

If your income and assets are in Canadian dollars but the purchase, mortgage, and operating costs are in U.S. dollars, exchange-rate movements can materially change the effective cost.

Budget for closing funds, annual expenses, and any eventual transfer of sale proceeds back to Canada. Your bank or foreign-exchange provider can explain available transfer and conversion options.

Purchase costs

Beyond the down payment, allow for:

1. Escrow, title, and closing charges.
2. Inspections and appraisal.
3. Legal and lender fees.
4. Property insurance and taxes.
5. HOA dues and possible special assessments.
6. Repairs, furnishings, utilities, and ongoing reserves.

Hawaii's Bureau of Conveyances provides information about recording property documents. Your escrow and title professionals can explain the transaction-specific closing process.

Obtain financing preapproval and a complete cost estimate before committing to a purchase.

7. Buying a Hawaii property: step-by-step

1. Talk to Todd. He can walk you through all these steps.
2. Define your intended use. Decide whether the property is for full-time residence, personal vacations, long-term rental, or short-term rental.
3. Confirm immigration and tax considerations. If you intend to move or spend extended periods in Hawaii, obtain advice before finalizing your plans.
4. Arrange financing. Confirm lender eligibility, down payment, documentation, and currency-transfer arrangements.
5. Choose the right property. Review ownership type, location, insurance, HOA documents, reserves, and maintenance obligations.
6. Verify rental legality. For an intended rental, check zoning, permits, county restrictions, and association rules before relying on projected income.
7. Complete due diligence. Review title, inspections, disclosures, insurance availability, property condition, and applicable contingencies.
8. Close the transaction. Coordinate escrow, funds transfer, title, signing arrangements, and any lender conditions.
9. Set up ownership administration. Establish billing, insurance, tax records, property management, and applicable registrations.

For Maui properties, the Maui County Planning Department and the property's governing association are important sources when verifying permitted use.

8. Selling your Hawaii property as a Canadian

Selling can create tax obligations in both the United States and Canada, and the sale may involve withholding before the final tax liability is known.

U.S. capital gains

The U.S. tax calculation generally starts with the sale proceeds and adjusted tax basis. The basis may include the original purchase price and eligible capital costs, adjusted for depreciation and other relevant items.

If the property was rented, depreciation claimed or allowable can affect the eventual tax calculation. See the IRS guidance on selling a home for relevant concepts. Rental properties and nonresident sellers may require additional analysis beyond the ordinary home-sale rules.

FIRPTA withholding

The Foreign Investment in Real Property Tax Act, commonly known as FIRPTA, generally requires withholding when a foreign person disposes of a U.S. real property interest.

The standard withholding rate is generally 15% of the amount realized, not 15% of the profit. The amount realized can include cash, the value of other property transferred, and liabilities assumed by the buyer.

Exceptions and reduced withholding rules may apply, including certain transactions where the buyer intends to use the property as a residence. Eligibility depends on the facts and applicable thresholds.

Withholding is not necessarily the final tax owed. The seller generally needs to file the relevant tax return to calculate the actual liability and may be entitled to a refund if too much was withheld.

Review the IRS FIRPTA withholding guidance, exceptions to FIRPTA withholding, and withholding certificate procedures. Plan for this before closing. FIRPTA withholding can materially reduce the cash available to the seller at the time of sale.

Hawaii withholding and sale requirements

Hawaii has separate real-property disposition withholding rules commonly referred to as HARPTA. The seller's residency, ownership structure, and transaction details determine which requirements apply. Confirm the applicable forms, withholding, and filing obligations with the closing professional and tax adviser. Start with the Hawaii Department of Taxation and request current guidance on nonresident real-property dispositions.

Canadian capital gains

If you remain a Canadian tax resident, the sale may also need to be reported in Canada. The Canadian calculation can differ from the U.S. calculation, including how the purchase price, sale proceeds, expenses, and exchange rates are treated.

Foreign tax credits may help reduce double taxation, but the final result depends on the circumstances and the interaction between the two tax systems. Review the CRA's foreign income guidance and consult a cross-border tax professional.

Before listing your property

1. Obtain an estimate of U.S. and Canadian tax consequences.
2. Confirm FIRPTA and Hawaii withholding requirements.
3. Gather purchase records and capital-improvement receipts.
4. Assemble rental-income and depreciation records.
5. Review mortgage payoff, closing costs, and any HOA obligations.
6. Plan how to transfer the net proceeds to Canada.

9. Your Canadian buyer checklist

Before purchasing, make sure you can answer these questions:

1. Am I buying a personal-use home or an income-producing investment?
2. Do I understand the immigration rules for the time I intend to spend in Hawaii?
3. Have I checked whether my travel pattern could affect U.S. tax residency?
4. Have I reviewed my Canadian tax reporting obligations?
5. Have I confirmed financing, down payment, and closing costs?
6. If renting, have I independently verified that the intended rental use is legal?
7. Have I budgeted for property taxes, insurance, HOA fees, repairs, and management?
8. Have I discussed title, estate planning, and ownership structure with qualified professionals?
9. Do I understand the likely tax and withholding consequences when I sell?

10. Frequently asked questions

Can a Canadian buy a house in Maui without a green card?

Generally, yes. A green card is not normally required merely to purchase property. Property ownership does not grant permanent residency or an extended right to remain in the United States.

Can I stay in Hawaii for six months every year?

Do not assume that you automatically qualify for a six-month stay. Your admission conditions and immigration circumstances govern your permitted stay, while tax residency is determined separately.

Can I rent my condo on Airbnb when I'm back in Canada?

Possibly, but it depends on the specific property's legal eligibility, zoning, permits, county regulations, and association rules. On Maui, the current and future status of certain apartment-zoned vacation rentals requires particular care. Review Maui County's official Bill 9 information and obtain property-specific confirmation.

Do I pay tax in Canada and the United States on rental income?

If you remain a Canadian tax resident, you generally report worldwide income in Canada. U.S. federal and Hawaii taxes may also apply to the rental income. Foreign tax credits may reduce double taxation, subject to applicable rules.

Does my Hawaii vacation home need to be reported on Form T1135?

A qualifying personal-use vacation property is generally excluded from Form T1135. A property held primarily for rental or investment purposes may be reportable if the applicable threshold and other requirements are met. See the CRA's Form T1135 guidance.

What happens when I sell my Hawaii property?

You may have U.S. federal tax, Hawaii tax, Canadian tax, and withholding obligations. FIRPTA withholding can be based on the amount realized rather than the profit, so planning before closing is important.

Is it better to buy personally or through a company or trust?

There is no universally best ownership structure. The right choice depends on tax, liability, estate planning, financing, and administrative considerations. Obtain cross-border professional advice before taking title.