Buying property in Canada...
Immigration Canada governs the rules for coming into Canada on a long-term basis. It is very important you do your research and establish the type of residency you wish to choose. Anyone can purchase property in Canada, but if you are not a Permanent Resident or Citizen of Canada, you must consider some additional requirements for property ownership.
Before any move to Canada you should consult with an Immigration Lawyer and a Certified Accountant specializing in Non-Permanent Resident Taxation law. All of this information MUST be verified personally by you as a Buyer or Seller!
A Non-Permanent Resident is a person who normally or routinely resides outside of Canada and (not a complete list):
- Is not deemed under another provision of the Income Tax Act to be a Resident.
- Spends fewer than 183 days in Canada in a calendar year (not including employees of the Canadian government)
For more information on Canadian residency visit the Canada Customs and Revenue Agency website.
Costs for Non-Resident ownership in British Columbia
You pay the same price for a house as any Canadian citizen. You pay the same Property Transfer Taxes and closing and legal costs. Our residential mortgages in Canada are all on a semi-annual compounding interest basis. Some financial institutions allow for as much as a 25 year amortization period (the time it takes to pay off the mortgage). I can direct you to financing information at your request. For Non-Permanent Resident financing information, please visit Canada Mortgage & Housing www.cmhc.ca under the Newcomer to Canada section.
All Non-Resident property owners in Canada must allow 25% of any income earned from a rental property in Canada for Customs Canada taxation purposes. Taxes for the following are deducted at the source:
- Interest and dividends
- Rent and royalties
- Pension payments, retiring allowances
- RRSO and RRIF payments
- Annuity payments
- Management fees
US Citizens: Reduce your Canadian Taxes! I would be pleased to forward this information to you.