Non-Residents

"Vancouver is the world's best place to live"
Economist Intelligence Unit (EIU)

"Vancouver was voted the "Best City in the Americas" for 2004, 2005 and 2006" Condé Nast Traveler magazine

Vancouver is a world class city and proving to be a great place to invest year after year. Low interest rates, strong immigration and a reputation of being the most beautiful and livable city in the world is attracting buyers from all over the world including China, South Korea, Great Britain and Iran to name a few.

Purchasing a property in Canada

There are no restrictions for non-residents to purchase real estate in Canada.
No tax implications or extra fees at time of purchase
Non-residents can purchase as many properties as they wish in Canada
For rental properties non-residents must file Canadian tax return

Arranging a Canadian Mortgage for Non-Residents

Banks and lenders usually require non-residents a minimum 25-50% payment. It is possible to arrange financing with less than the 25% down payment however these lenders charge a higher rate of interest.

Personal information required including - assets/liabilities, employment/income verification, tax returns, credit bureau or bankers reports, down payment confirmation, identification and real estate appraisal

You will need to open a Canadian bank account for mortgage payments to be drawn from

You will require the services of a Canadian lawyer or notary public to prepare mortgage documents and registration at the Land Titles office

Non-Residents Selling a Canadian property

3 stages in the collection of income taxes associated with the sale of real estate by non-residents

Initial withholding Amount - 25% of gross sale proceeds until clearance certificate is received by Canadian Customs and Revenue Agency in connection with the sale of the property
Clearance Certificate - application made to CCRA. Upon receipt the funds being withheld is reduced to 25% of the capital gains on the property
Filing of Canadian Income Tax Return - Income tax return must be filed for the year in which the sale occurs.

When Calculating capital gains tax for Clearance Certificate Purchases sellers can only claim:

The original purchase price

Property transfer tax

Legal fees and disbursements on the original purchase

Cost of furnishings included in the sale

Strata corporation special assessments

GST on the original purchase price

Mortgage interest (if appropriate elections on the tax return have been filed to have the mortgage interest capitalized)

Capital Gains Tax

Only 50% of the capital gain is taxable

Clearance certificates can take 6-8 weeks to be obtained

If sale completes before the clearance certificate is issued, 25-50% of the selling price will have to be held back from the seller's proceed until certificate issued

Non-residents are encouraged to contact a Canadian accountant or CCRA for further information on marginal tax rates for non-residents.

CCRA has a website at www.ccra-ardc.gc.ca