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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 B.C. is subject to a provincial
transfer tax amounting to one percent on the first $200,000
and two per cent 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 B.C. 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 7% though a partial rebate is normally granted if the buyer
plans to five 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: 1-800-267-6999) 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 B.C. 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 to 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 B.C. (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 nonresident 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 paid.
Medical
Services Plan
All residents of B.C. are required to enroll themselves
and their dependents in the Medical Services Plan (MSP) and
to pay the premiums that may be due. An individual must be
a resident of B.C. in order to qualify for medical coverage
under the MSP. A resident is a person who meets all of the
following conditions:
- Must
be a citizen of Canada or be lawfully admitted to Canada
for permanent residence;
- Must
make his or her home in B.C.; and
- Must
be physically present in B.C. at least six months in a calendar
year.
- Dependents
of MSP beneficiaries are eligible for coverage if they are
residents of B.C.
For
complete information, visit the following site: www.hlth.gov.bc.ca/msp/infoben/eligible.html |
