Non-resident returning to Canada with imported new car from EU

[kwkp]

Greeting to all,

I am a non-resident and left Canada for 20 years, and I plan to return later this year. I heard from a friend that I can purchase a new car in Europe through a program similar this (https://www.bmw.ca/en/topics/experience/European-Delivery.html). By doing this, this will save me some money on tax. I am not sure if this is true or not. Hope to get some insights on this. Thanks in advance.

 

[Buletruck]

The vehicle would have to meet Transport Canada standards. If it’s not a model currently marketed in Canada for foreign delivery, it isn’t eligible for entry.

http://www.tc.gc.ca/eng/motorvehiclesafety/safevehicles-importation-other-than-index-446.htm

 

[kwkp]

Thanks for the comments. In term of the vehicle specifications, I think it will need the Canadian requirements. In term of cost saving, is there any benefit of doing that comparing to buying straight forward from a Canadian dealer. Thanks again.

 

[bimmerm3m5]

I'm fairly certain you cannot avoid the tax with the European Delivery option. This is really geared towards cutting costs on the sticker price, replacing the savings with the cost of going to Munich and going on a recommended driving trip by BMW.

If you want a BMW and want to save on tax, your best bet is to find one of the models manufactured in South Carolina. This should save you on the ~7% non-NAFTA tax.

 

[Buletruck]

From what I’ve read and heard, the savings is about the equivalent to a vacation in Europe. Probably about $5-6K. The other saving would be on duty when you return. I believe (not positive) you would only pay duty on the value above $10K. You would need to have purchased the vehicle 6 months prior to importing it and it can’t be sold for one year. Make sure it does meet Transport Canada requirements or it will be refused entry. Too many horror stories about people importing cars only to find they aren’t eligible and either have to be re-exported or siezed and destroyed.

 

[links18]

Are you a former resident who will be returning to Canada to live? If so, you can call the car settler's effects and avoid GST/HST/PST, but not duty and there are many requirements the vehicle will have to meet before it can be imported and registered in Canada--unless it is more than 15 years old. Since you have lived abroad for more than 5 years, there is no 6 month use/possession requirement for the vehicle prior to bringing it to Canada, but you must have been continuously absent from Canada for a year.

 

[kwkp]

Thank you for all the advices.