2012 is another busy winter for Hawaii realtors who deal with Canadian buyers, who still show strong interest in purchasing condominiums or single-family homes on the Kohala Coast of the Big Island.
For those Canadian retirees who are seeking to winter in warmer climates, such as Hawaii in the U.S., they will receive a maximum admission period of 6 months each year. Many of them appeared before U.S. Congress to prevent U.S. legislation that threatened to reduce the amount of time Canadians could travel to the U.S. from 182 days to just 30 days.
Hawaii is a favored destination for sun-seeking Canadians
I was recently talking to Canadian clients who are Canadian snowbirds and who have been wintering at their Waikoloa Colony Villas townhome these past few years and they told me that they were careful not to stay longer than the allowed 182 days per year. If they were to exceed this limit, they would be required to pay taxes in both countries.
Waikoloa Colony Villas within the exclusive Waikoloa Resort area
According to Canada’s Foreign Affairs and International Trade website: “A maximum admission period of 6 months is expected to be the norm for Canadian retirees seeking to winter in warmer climates. Those of which who desire to stay longer may apply for an extension with the nearest office of the U.S. Citizenship and Immigration service once they are in the United States, but before their authorized stay expires. They may be asked to demonstrate that they are only remaining temporarily in the U.S.”
When Canadians purchase a property in Hawaii, the tax law might be complex, especially if the property is used as a rental when the homeowner is away. Before purchasing a home or condo on the Big Island, the Canadians should become familiar with tax laws that will affect their ownership both in Canada and in the United States.
Either for a Hawaii week stay, 30 days, or 182 days, Canadians must also consider to plan for medical care and currency exchange rates. Though there are additional considerations, many Canadian snowbirds enjoy wintering in the Aloha State. The Canadian Snowbird Association (CSA) is a not-for-profit organization that offers a wealth of information to educate and support Canadian travelers and/or homeowners abroad.
Through organizations like the Canadian Snowbird Association, information found online, and the help of Hawaii Life fellow Realtor bloggers, I am committed to help Canadian buyers learn how to accomplish their dreams of calling Hawaii their second home, ready eh?