There are no restrictions related to foreigners buying Canadian property. However, be aware of the following:
Canadian income tax legislation requires foreigners to pay 25% of any gross rental income to the Canadian taxation authorities as security for actual taxes due. Purchasers can frequently obtain an exemption from this requirement by formally filing a budget. Property rental managers usually assist with this. It then becomes important to file annual income tax returns to retain the exemption.
Foreign corporations need to provide extra documentation to satisfy land registration requirements. If the corporation is going to carry on commercial activity (rent property on a nightly basis), then the corporation will have to be extra-provincially registered in B.C.. If the purchase is a one time purchase and the corporation does not do business in B.C., the corporation will only have to file a certificate of incorporation, certificate of good standing and affidavit of no commercial activities. Extra-provincial registration is more involved.
Foreigners should note that they will have to obtain clearance certificates at the time of the sale of their property. As much as 50% of the gross value of the property will be held back on sale pending receipt of clearance as security for unpaid income tax and capital gains tax.
