| Over my years of practice, I have noted that there are five questions that foreign nationals usually ask prior to applying for immigration. Here are the questions and the answers: |
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| 1. Will buying a house or a business help my immigration to Canada? |
| | Buying a house does not increase chances of entry, but nor does it hurt. The purchase of a home certainly shows a connection to Canada and the home is ultimately treated as a part of the overall net worth of the individual, but simply owning a house and living here as a visitor will not affect the selection process.
Buying a business, however, could result in a faster entry into Canada based on a temporary work permit. CAUTION! Buying a business must be part of a comprehensive immigration strategy. The purchase must be strategized with other qualifying factors, such as overall asset base, the projected performance of the business and previous business experience. These important aspects are examined and must be approved by the provincial government and/or the federal immigration department before any business is purchased. It is best to seek professional taxation and legal advice prior to purchasing a home or business. |
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| 2. As a foreigner can I get a mortgage? |
| | The answer is yes. The requirements for obtaining a mortgage to finance a purchase, whether a home or a business, will depend on the institution with which the foreign national will do business. Generally speaking, there is usually not a problem in securing mortgages with more-established financial institutions. These institutions will usually require a letter of introduction from the previous banking facility with which the foreigner has done business in his or her own home country. Previous income in the home country will also be verified. Also, institutions may require a greater percentage of the purchase price as a down payment. |
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| 3. How long can I stay in Canada? (Can’t I just go out for a day and come back?) |
| | Generally, a person is allowed a six month entry as a visitor. If a second home is purchased, one can bring in a reasonable amount of furniture as a “seasonal resident” without paying any duty. There is no corresponding regulation in the immigration act (IRPA) that states the person has to leave for six months before returning, so multiple entries can be allowed. CAUTION! You cannot “flagpole” continuously. Flagpoling means leaving Canada for a few days and then returning to Canada. Although such re-entry may be allowed on one or two occasions, the person does run a risk of being refused entry into Canada because he or she is living in Canada as a resident under the guise of being a visitor. The foreign national must maintain substantial roots with his or her home country. See the following website: http://www.victorialaw.com/details/articles/Flagpoling.pdf |
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| 4. If I rent out my home, what are the tax implications? |
| | Occasionally, foreign nationals will purchase a home, reside in it for a few months of the year and rent it out for the balance. NOTE: Special tax rules do apply to such situations and Canadian tax returns must be filed by the foreigner. In fact, if the taxation payments are not set up properly, the foreign landlord will be required to pay 25% of the net rental income per month to the tax department as a holdback until the tax returns are filed. However, such a drastic reduction of rent can be avoided if a Canadian resident is appointed on behalf of the foreign national to make the filings at the end of the year. CAUTION! When selling a residence, a foreign national must file a clearance certificate well in advance of the sale or there can be up to a twenty five percent holdback of the full selling price until the clearance certificate is obtained from the tax department. |
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| 5. Can I retire in Canada? |
| | There is no retirement category under the immigration regulations. Such an avenue did once exist, but the retirement avenue of immigration was phased out in the late 1980s.
If an individual is buying a home with the view of ultimately retiring here, it is important to seek legal immigration advice immediately. Qualifying for immigration is time sensitive in that points are awarded based on the number of years of experience in both business and in work as well as the age factor. It is important that as soon as individuals are considering purchasing a home here in Canada that they seek immediate immigration legal advice to ensure that a proper strategy exists for the potential permanent entry in the Future. There are also health and age-related questions which may impact the admissibility. See the following website:http://www.victorialaw.com/details/articles/retirees.php |
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| 6. Will I be accepted for Canadian immigration? |
| | Canadian immigration depends upon an individual obtaining 67 points pursuant to age, education, language skills, and work experience. Generally speaking a person must be under the age of 49, have a university education and four years of professional management experience. The individual and his family members must be in good health, as evidenced by a medical examination and not have any criminal record.
If an individual does not qualify by way of skilled worker category, there is a possibility of qualifying under the business category. A person must have a net worth of at least $1 million and be prepared to invest either $400 000 with the government of Canada for a period of five years without interest, or must be prepared to invest $300 000 into a company which will result in two more jobs being created for Canadians. Note, that it is recommended that an individual travel to British Columbia first in order to determine the type of business he/she would like to be involved with. |
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| 7. How long will the process take? |
| | Normally a permanent resident application can take anywhere from three to five years. However, if individuals do want to come to Canada quicker on a temporary work permit, then they must have a Canadian employer, or go through the Provincial Nominee Program as mentioned above. At this point it is best to tell them that they do need to speak to me in order that I can explain the process further. |
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| 8. Can't I just give the government $400 000 and go to Canada? |
| | This option is the investor option and is only available to individuals who have had a thriving business in their own home country for the past five years. There are certain qualifications to be met as a business person to qualify. Alternatively, if the person has been a senior manager and has had direction over more than five individuals, this option can be used. However, I would need to speak with them about their business experience to determine whether this option is available. One cannot simply give the government $400 000 regardless of one’s background to allow the person to come to Canada. One must be a business person as mentioned here. |
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| 9. How much does it cost to immigrate? |
| | The fees for immigration of processing successful immigration to Canada vary according to whether it is a skilled worker application or a business application or a Provincial Nominee - 2 - Program application. It is important that I know exactly what the application is before we can tell them the exact cost. |
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| 10. What are the taxes like in Canada? |
| | Personal taxes are generally for high net worth individuals at approximately 45-49%, but once again, any specifics of taxation should be referred to a taxation specialist who knows both Canadian/Chinese taxation rules. It is impossible to project what overall taxation issues will be, unless their full financial background and income background is examined. |
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