Restrictions

There are no restrictions on non-residents purchasing property in British Columbia. You are not required to become a Canadian citizen to own real estate.  However, there are restrictions on how much time may be spent in the country as a non-resident land owner.

Part Timers

Non-residents may stay in Canada for less than 180 consecutive or cumulative days in a calendar year.  Many international buyers spend summers in Canada and winters in the tropics.

Immigration

Non-residents may move permanently to Canada and may operate a business after obtaining legal status by qualifying for immigration. For up to date rules and regulations, go to www.jamesnorris.com or www.victorialaw.com  or contact an immigration office close to you.

Tax Consequences

Any gain on the disposition of property in Canada will be subject to tax in Canada.  This tax is levied in two stages.  First there is a withholding tax at the time of disposition and then a final calculation of tax which is due after year end.

The withholding tax is usually calculated as the selling price less the cost for tax purposes .  Previous to a sale, the owner may obtain a 'Clearance Certificate' and pay the calculated tax. This Certificate may reduce the holdback to a percentage of the capital gain instead and takes about eight to ten weeks to process.

The final tax is calculated after the end of the taxation year in which the property is sold.  In this calculation of the actual gain, sellers can deduct related selling expenses such as commissions and legal and accounting fees.  If the total tax is less than the withholding tax paid at the time of obtaining the Clearance Certificate, the non-resident will be entitled to a refund of the difference.