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

2. The LAW

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

4. Financials

5. 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

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

7. taxes

8. 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)

9. 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)

10. 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

11. 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