GUIDE TO FOREIGN INVESTMENT IN Canadian property Toronto and Vancouver DIRECT FROM DEVELOPER LLC

The LAW

Foreign Ownership Freehold Ownership Foreign nationals can directly own property in Canada Indirect ownership through a corporation is also permissible Foreign Ownership

Financials

Property prices Toronto 16.1% decline in sales transactions (2018) Average price of new Toronto homes fell 1.4% (YOY October, 2018) Vancouver Benchmark price for all residential properties fell 6.1% (February, 2019) Sales dropped 32.8% (February, 2019) Property prices

Reasons for Declining Prices Economic Slowdown in 4th Quarter, 2018 Tighter Federal Lending Guidelines Punitive Taxes on Foreign Buyers Reasons for Declining Prices

taxes

Transfer taxes (Toronto) Sales and Transfer Taxes Foreign buyers tax. 15% tax on foreign buyers (non-resident buyers) Look-through rule for corporations Sales tax. 13% HST tax on sales of new construction Partial rebates potentially available (e.g., qualifying investment property) Transfer tax Progressive tax with rates of .5% to 2.5% assessed against purchase price Transfer taxes (Toronto)

Transfer taxes (Vancouver) Sales and Transfer Taxes Foreign buyers tax. 20% tax on foreign buyers (non-resident buyers) Look-through rule for corporations Sales tax. 5% Federal GST tax on sales of new construction Partial rebates potentially available (e.g., qualifying investment property) Transfer tax Progressive tax rates of 1% to 5% assessed against the purchase price Transfer taxes (Vancouver)

Omar Sawaf, J.D. About the Speaker Omar Sawaf is the founder of Direct From Developer LLC (DFD), a US based brokerage company that specializes in the sale/marketing of US off-plan property. Prior to founding DFD, Omar worked as an attorney in the Dubai, UAE office of Al Tamimi & Company (the largest law firm in the Middle East) and the Hong Kong, SAR office of Herbert Smith Freehills (the largest law firm Asia Pacific). Omar was recognized in Legal 500’s 2013 global law rankings for property. Omar received his J.D. from the George Washington University Law School and is a licensed attorney in Michigan. Omar Sawaf, J.D. About the Speaker

The information and opinions in this presentation are for informational purposes only and do not constitute legal, tax or brokerage advice. Do not rely on these materials. Direct From Developer LLC is not licensed in Canada. You should contact your own attorney, tax advisor or real estate broker to obtain advice with respect to any issues or questions. No representations are made as to the accuracy of the information herein. Disclaimer