NON-RESIDENT BUYERS

• NO RESTRICTIONS ON NON-RESIDENTS OWNING PROPERTY IN BC

• WITHHOLDING TAX: 25% OF THE GROSS RENTAL INCOME IS WITHHELD UNTIL YEARLY INCOME TAX RETURN IS SUBMITTED.  AN EXEMPTION FROM THE WITHHOLDING TAX MAY BE OBTAINED IF A REVENUE CANADA FORM CALLED AN "NR6" IS COMPLETED ESTABLISHING THAT THE RENTAL INCOME FROM THE PROPERTY WILL BE LESS THAN THE ALLOWABLE EXPENSES ASSOCIATED WITH THE PROPERTY.  THIS FORM MAY BE OBTAINED FROM REVENUE CANADA, LAWYER, PROPERTY MANAGER OR YOUR ACCOUNTANT.   AN AGENT MUST BE OBTAINED WHO IS WILLING TO REPRESENT THE OWNER.

• AN ACCOUNTANT SHOULD BE RETAINED TO FILE YEARLY INCOME TAX RETURN AND TO ACT ON BEHALF OF OWNER TO ENSURE TAX COMPLIANCE

NON-RESIDENT SELLERS

• NON-RESIDENT SELLERS MUST OBTAIN A CLEARANCE CERTIFICATE FROM REVENUE CANADA.  THE CURRENT WAIT IS 8-12 WEEKS.  PRIOR TO ISSUANCE THEY WILL WISH TO COLLECT ANY TAX (RENTAL, GST, CAPITAL GAIN) PAYABLE.

• CAPITAL GAINS: ONLY THE PROPERTY TRANSFER TAX, LEGAL FEES OF PURCHASE, FURNISHINGS, RENOVATIONS AND GST MAY BE ADDED TO PURCHASE PRICE IN CALCULATING CAPITAL GAIN.  

• SELLERS SHOULD CONTACT THEIR LAWYER AND ACCOUNTANT IMMEDIATELY UPON ACCEPTANCE OF AN OFFER, PREFERABLY AS SOON AS PROPERTY IS LISTED FOR SALE .  THE COMPLETION DATE SHOULD BE AT LEAST 12 WEEKS AFTER ACCEPTANCE TO ALLOW TIME FOR THE CLEARANCE TO BE ISSUED.  IF THIS IS NOT DONE A HOLDBACK OF UP TO 25% OF SALE PRICE MAY BE WITHHELD UNTIL ISSUANCE.  THIS MAY PREVENT TITLE TRANSFER IF THE MORTGAGE IS GREATER THAN THE NON-HOLDBACK FUNDS.