If you live in another country or are a non-resident who is looking to purchase or sell property here in Vancouver, we can certainly help you. When you're buying or selling a property outside of your country, you require professional assistance to ensure everything goes smoothly. We offer competent representation in international real estate dealings.
International Home Buyers
Buying property in our nation can be a great investment strategy. You can find a place that works as a vacation home, a permanent residence, or as a rental property. Chances are that your property value will go up, leaving you with a significant asset.
It's advisable to take a trip to the neighbourhood you're considering buying in for the express purpose of looking at properties and the community. If you can't visit, seek out a competent professional to find the type of property you want for a fair price. You may wish to retain an attorney in addition to hiring a real estate agent, so that your property purchase is problem-free.
An important part of buying property here is knowing local real estate laws and applicable taxes, including the PTT. Property Transfer Tax for foreign buyers can be 20% of the home's value. If you are unfamiliar with these items, it's advisable to legal/tax counsel who is experienced in these matters, as well as a knowledgable real estate professional who can help you.
No matter what your goals are for purchasing property in this country, we're dedicated to working hard for you and finding you what you want.
International Home Sellers
Purchasers must withhold a portion of the sale proceeds until a non-resident Seller has provided a Clearance Certificate from the Canada Customs and Revenue Agency, CRA. The holdback is normally 25% of the purchase price, To avoid liability for non-resident Sellers’ unpaid taxes, but it could be higher depending on the use of the property i.e. a rental property.
A non-resident Seller should retain the services of a lawyer or tax professional to assist in obtaining a Clearance Certificate. There are only two lawyers who do this in Vancouver; the cost is typically less. The certificate should be applied for as soon as possible; the process can take six to eight weeks or more. The wait is usually the longest during the summer months.
Not only will the CRA review the sale transaction to determine whether or not capital gains tax is payable, but they will also require payment of any taxes owed by the Seller. A Clearance Certificate will only be issued once the tax is paid, therefore a Seller can claim hardship to expedite the issuance of a Clearance Certificate under circumstances where the holdback would not leave sufficient funds to payout an existing mortgage at the closing.
The Seller can claim some expenses including: Property Transfer Tax (PTT), Provincial Sales Tax, legal fees on the original purchase, realtor fees, and any capital improvements made. These include strata assessments. The expenses are not a means of calculating the tax owing at the time of sale, but rather the Seller can claim these expenses by filing a tax return at after the sale. Thanks CRA!