The number of nominations under the BC PNP is based on annual nomination allocations from the Canadian federal government, and processing times at the BC Government. For 2017, the allocation is 6,000. In 2016, it was 5,800. Given that many nominees relocate to markets affected by the Foreign Entity Tax, the OIC may provide relief for a significant number of home buyers.
Starting August 2, 2017, a refund will be available for Canadian citizens or permanent residents who have previously paid the Tax and have obtained citizenship or permanent residency status in the period following the effective date of the Tax. Going forward, refunds will also be available for foreign national purchasers who become Canadian citizens or permanent residents within one year after purchasing their property, and is not available for companies or taxable trustees. In order to be eligible for the refund, the Tax must have been paid in respect of a residential property purchase which, on that date of registration of the applicable conveyance, included a permanently affixed improvement that was intended to be a dwelling; and the purchaser must continuously occupy that dwelling as his or her principal residence for at least a year beginning on a date that is at least 92 days after the acquisition date. As with the provincial nominee exemption above, each purchaser is only eligible to receive a refund of the Tax once, and must claim it within 18 months of purchasing the property.
Anecdotally, it appears that certain foreign buyers already in the process of applying for permanent residency have entered the market by way of purchasing presale condos and townhouses, with the plan that they would obtain permanent residency by the time of completion. This availability of a refund will provide another option for relief from the Foreign Entity Tax for foreign buyers who anticipate becoming permanent residents.”