TAXES

There are a number of applicable municipal, provincial and federal taxes when purchasing and owning property. Here is a brief overview:

Property Transfer Tax—provincial government tax applicable to all transfers of real estate, payable on the completion date. The rate of the tax is 1% on the first $200,000 of the purchase price and 2% on the balance. There are certain exemptions for first-time home buyers that are Canadian residents.

Harmonized Sales Tax (HST)—12% federal tax applicable to the purchase of newly constructed properties and on the resale of accommodations that have been rented out on a nightly/weekly basis. This tax can be deferred if the new purchaser intends to continue using the property for short term or nightly rentals and they become an HST registrant.

Provincial Sales Tax on furnishings—for furnished properties, buyers are required to pay PST (7%) on the value of the furnishings, even if the furniture is used. In most cases the PST is not paid on typical nightly rental properties, however in larger scale transactions where there are expensive items such as artwork and extensive furnishings, buyers should be aware that PST may be charged on these items.

Municipal Property Tax—annual tax is collected by the Resort Municipality of Whistler for expenses such as public road maintenance, water and sewer infrastructure, etc. Property taxes are paid annually on July 1st which encompasses the preceding and the upcoming six months.

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OTHER PURCHASE COSTS

In addition to the actual purchase price and taxes there may be other costs associated with buying a home for both residents and non-residents, ranging from mortgage financing to professional services and insurance.

We would be pleased to outline all the costs and recommend lawyers, accountants and mortgage brokers who can provide assistance.

Please contact us for additional details or any questions you may have regarding taxes and purchase costs.

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