Qualifying Americans For Canadian Immigration
NON-RESIDENT REAL ESTATE PURCHASES
There are no restrictions on international buyers purchasing property in the province of B.C. There are, however, income tax ramifications to be aware of.
Many international buyers are drawn to this area by the spectacular beauty, relaxed pace of life, mild climate, and wonderful boating waters.
Salt Spring Island, the “hub” of the southern Gulf Islands offers “city” services in a rural, pollution and crime free environment. The Island community is friendly and rich in culture. Islanders, on average are highly educated and well-travelled, and Salt Spring artisans are known around the world for their superb work.
Salt Spring Island properties include building lots, acreages, cottages, hobby farms, oceanfront, lakefront, ocean view, businesses and commercial. Services include paved roads, electricity, cablevision, telephone, internet and cellular services, piped water, well and sewer/septic systems. Salt Spring Island is serviced by commercial float-plane service and an extensive ferry system.
Americans enjoy an almost 25% discount when paying Canadian prices in American dollars. For instance, as of January 2004, $300,000 Canadian is approximately $250,000 American.
Part-Time Vs. Full Time Residence:
If a non-resident stays in Canada for more than 182 consecutive days, he/she may be deemed a Canadian resident for Canadian income tax purposes, and may be subject to Canadian income tax rules on his/her “world income”. Staying in Canada for less than 182 consecutive days will likely avoid double taxation. For this reason, most non-residents adopt a 6 months here, 6 months there lifestyle.
Non-Resident Sales:
If a non-resident sells Canadian property, Canadian law requires a 33 1/3 holdback on the proceeds of Sale pending filing of a Canadian Income Tax return by the end of the next tax year. There is a tax treaty in effect between Canada and many countries including the US, which allows a credit against tax owed in Canada in the amount of what tax has been paid in the treaty country. Filing appropriate documentation in advance of selling Canadian property may reduce the holdback to a percentage of the capital gain, instead of the selling price.
International Tax Treaty:
Numerous countries have signed tax conventions with Canada. For details on how this affects your tax status with regards to income taxation, please see you tax accountant. This information is in effect as of April 4, 2002.
Caution:
Conditions and exchange rates fluctuate on a regular basis. This information is provided as a guideline only. For details on how any of this information affects your status with regards to income taxation, please consult with your tax accountant or lawyer. Please make independent enquiries regarding immigration.