Foreign Buyer Tax (Vancouver) as an incoming PR

[raptora]

Hi all,

Does anyone have experience with buying property as an incoming PR? There is a condo I am interested in, but I am not approved for PR yet so I would believe I would be considered a foreign buyer if I make an offer now. However, I did read that there is some kind of refund if I become a PR within one year of purchase and was hoping someone could confirm or explain how that works.

Cheers and thank you!

 

[YVR123]

Hi all,

Does anyone have experience with buying property as an incoming PR? There is a condo I am interested in, but I am not approved for PR yet so I would believe I would be considered a foreign buyer if I make an offer now. However, I did read that there is some kind of refund if I become a PR within one year of purchase and was hoping someone could confirm or explain how that works.

Cheers and thank you!

Are you working with an agent? Your real estate agent should be able to get this answer for you.

 

[YVR123]

OK. I caved in. I googled for you.

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/additional-property-transfer-tax/refunds
Refunds for the Additional Property Transfer Tax
You may be eligible for a refund if:

• You became a permanent resident or Canadian citizen within one year of the date the property transfer was registered with the Land Title Office (see additional criteria below)

In addition to becoming a permanent resident or Canadian citizen within one year from the date the property transfer was registered with the Land Title Office, to qualify for the refund, you must also have:

• Used the home as your principal residence
• Moved into the home within 92 days from the date the property transfer was registered
• Continued to live in the home as your principal residence for at least one full year after the date the property transfer was registered

And there are other additional information on what you need to provide to proof it.
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/additional-property-transfer-tax/refunds#permanent-resident-canadian-citizen

 

[raptora]

OK. I caved in. I googled for you.

I appreciate the effort! That's pretty much what I had found, but I was questioning whether I understood correctly and was hoping someone here had experience with it. That 92 day move-in requirement makes a pretty strong case to me for not buying until I have my PR in hand though...

 

[Musti82]

check the govenrement website but if you are already approved, i think they dont charge it, but you an get it back as a refund once you establish your residency(PR) i think there is a timeline, but yo ushould be able to get it back.

 

[tgoericke]

It might be different from Ontario. But my friend just bought a house here and her broker said it's up to the lawyer to define if you need to pay for the foreign tax. She and her husband are both non-citizens. They applied for the PRs just before they bought the house and told their lawyer that they were PR here. They didn't get asked for the proof and now already living in the new house. Still haven't got the PR.

 

[YVR123]

It might be different from Ontario. But my friend just bought a house here and her broker said it's up to the lawyer to define if you need to pay for the foreign tax. She and her husband are both non-citizens. They applied for the PRs just before they bought the house and told their lawyer that they were PR here. They didn't get asked for the proof and now already living in the new house. Still haven't got the PR.

They basially lied and it's consider fraud.

The lawyer is also at fault (partially that he didn't asked for ID proof).

The hope is that if they get their PR within one year of the date the property transfer was registered with the Land Title Office, they are OK. (Since they've already moved in and it's their principle residence.

[note: never mind. Just saw that your friends are from Ontario... so it may be different there]

 

[tgoericke]

They basially lied and it's consider fraud.

The lawyer is also at fault (partially that he didn't asked for ID proof).

The hope is that if they get their PR within one year of the date the property transfer was registered with the Land Title Office, they are OK. (Since they've already moved in and it's their principle residence.

[note: never mind. Just saw that your friends are from Ontario... so it may be different there]

I've read the website again and I don't think it's that much of a difference. They are obligated to pay for the foreign tax. And you are right. It's a fraud. I thought even if they got their PR later on, isn't it possible that the government could check because the SIN would be changed as well?
Speaking of the principle residence, how do they proof that, btw? Could they rent out some parts of the house if it's supposed to be their principle residence?

 

[canuck78]

I've read the website again and I don't think it's that much of a difference. They are obligated to pay for the foreign tax. And you are right. It's a fraud. I thought even if they got their PR later on, isn't it possible that the government could check because the SIN would be changed as well?
Speaking of the principle residence, how do they proof that, btw? Could they rent out some parts of the house if it's supposed to be their principle residence?

Hopefully as a PR or citizen yourself you will report the fraud. We all pay in the end because of tons of illegal or questionable practices real estate.

 

[steaky]

I've read the website again and I don't think it's that much of a difference. They are obligated to pay for the foreign tax. And you are right. It's a fraud. I thought even if they got their PR later on, isn't it possible that the government could check because the SIN would be changed as well?
Speaking of the principle residence, how do they proof that, btw? Could they rent out some parts of the house if it's supposed to be their principle residence?

Yes, they can rent out some parts of their principle residence. Consider a laneway house of their single detached house which they tenanted.

 

[tgoericke]

Hopefully as a PR or citizen yourself you will report the fraud. We all pay in the end because of tons of illegal or questionable practices real estate.

I understand your feeling. Unfortunately, I cannot do that to my friend. I did my best for advising her not to but she's the one who made the decision.

 

[tgoericke]

Yes, they can rent out some parts of their principle residence. Consider a laneway house of their single detached house which they tenanted.

I see. Thank you for the info!

 

[klaartje]

I've read the website again and I don't think it's that much of a difference. They are obligated to pay for the foreign tax. And you are right. It's a fraud. I thought even if they got their PR later on, isn't it possible that the government could check because the SIN would be changed as well?
Speaking of the principle residence, how do they proof that, btw? Could they rent out some parts of the house if it's supposed to be their principle residence?

Just chiming in as I am currently looking at the house buying process myself (currently on a WP, submitted PR application just before COVID lockdown:-/), but whether you need to pay the foreign tax depends on where you are buying. In Ontario I think it is only applicable to the GTA, but for example in Ottawa, were I am, there is no such thing.

 

[NewDestination]

Just chiming in as I am currently looking at the house buying process myself (currently on a WP, submitted PR application just before COVID lockdown:-/), but whether you need to pay the foreign tax depends on where you are buying. In Ontario I think it is only applicable to the GTA, but for example in Ottawa, were I am, there is no such thing.

As far as I know, in Ontario the tax only apply if you buy a house within the Gorden Horseshoe Areas. PR applicants still need to pay that tax and debate latter expect for someone who got the nomination of Ontario