This is a perfect opportunity for foreign buyers to invest in Downtown Vancouver Realty. There are many areas of Downtown Vancouver to consider when purchase property. The major Downtown Vancouver Regions are: Coal Harbour, False Creek, Downtown Vancouver, and Yaletown.
Foreign ownership in Canada and Downtown Vancouver requires a witholding tax of 25% on the gross rental income. This is calculated on a monthly basis.The tax implication, however, can become more favourable by completing an NR6 form.
NR6 Form - NR6
Undertaking to File an Income Tax Return by a Non-Resident Receiving Rent from Real Property.
This form is a joint election between the foreign owner and the local agent or manger that you will file a section 216 Canadian tax return by June 30th, of the following year.
Although filing a section 216 Return is not mandatory, it is usually beneficial, as the NR6 along with the Section 216 filing, will reduce the tax implication from 25% of gross rental income to 25% of net rental income.
Allowable deductions include property taxes, repairs and maintenance, management and accounting fees, and advertising expenses. NR6 undertaking must be filed prior to receiving the first rental payment and must be filed annually.
If you are interested in investing in Downtown Vancouver Realty, it is suggested to utilize the nr6 form.
