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Non-Resident Resources
There is no requirement in British Columbia that the purchaser
of real property have any particular residency or citizenship.
To occupy residential premises, the non-resident must comply
with immigration requirements. These vary depending upon the
nationality of the individual involved. U.S. residents are
relatively free to occupy residential premises in Canada on
a temporary basis. You may wish to check with your nearest
Canadian Consulate regarding any residency permits that may
apply in the event of an extended stay in Canada. You may
also wish to bear in mind the following information:
Property Transfer Tax
The purchase of property in BC is subject to a provincial
transfer tax amounting to one percent on the first $200,000
and two percent on the balance. Some exemptions apply in the
case of buyers who have not owned property anywhere in the
past. For detailed information, contact the Property Transfer
Tax Information Line at (250) 387-0604.
Property Taxes
Individual municipalities levy annual property taxes. The
actual amount of tax payable depends on a number of factors,
the key one being the assessed value of the property as determined
by BC Assessment, a provincial assessment authority. This
is a value set as of July 1 each year and is meant to reflect
the market value as of that date. Citizens may appeal their
assessment if they think it is too high. Municipalities then
determine the rate of property tax to be levied based on this
assessed value. Included in the annual tax notice are school
and other taxes, which are set by the school district and
other bodies. When considering a particular property, ask
what the current property tax amount is – this information
is usually readily available.
Goods and Services Tax (GST)
The purchase of a brand new home, as distinct from a resale
home, is usually subject to the federal GST. This tax stands
at 6% (July 1, 2006) though a partial rebate is normally granted
if the buyer plans to live in the home. The REALTOR with whom
you deal will be able to tell you more about this if it applies.
You may also wish to contact Canada Customs and Revenue Agency
(telephone: (250) 363-0121) or write to them (Canada Customs
and Revenue Agency, Vancouver Island Tax Services, 1415 Vancouver
Street, Victoria, BC V8V 3W4) regarding whether GST would
be applicable in your case and whether there are any other
issues about which you should be aware.
If you have access to the Internet, you may wish to visit
the Victoria Real Estate Board site (www.vreb.org)
where you will find a number of information articles concerning
buying real estate in BC. You will also be able to search
for properties that meet your criteria in terms of price range
and location.
Other taxation issues
It is recommended that you check with Canada Customs and Revenue
Agency and your own taxation authorities as there are significant
implications should you earn any income from property in BC
(e.g., through rents during the period that you own the property,
or capital gains when the property is sold). It's also
important to note that there may be tax implications when
a non-resident property owner dies or when a property is transferred
from a person to his or her company or relative, despite the
fact that there may be no money.
For more information please visit http://victorialaw.com
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