On July 7, the BC government released the first set of data that show foreign nationals make up only 5.1% of home buyers in Greater Vancouver (see article here).
On July 28, the BC legislature passed legislation to implement a 15% foreign buyer tax on all residential properties effective August 2, 2016.
Anyone who aren’t Canadian citizens or have permanent resident status in Canada will have to pay this tax when buying residential properties in the region. The tax also applies to foreign-controlled corporations which are any corporation not incorporated in Canada, or are incorporated in Canada but controlled in part, or wholly, by a foreign national or corporation.
Under the new tax, a foreign buyer or foreign-controlled entity will pay an additional $150,000 in tax on a $1 million home.
The tax applies at the point of registration at the Land Title Office, regardless of when the contract was signed.
Government Announces Additional Property Transfer Tax
The government also announced a new additional property transfer tax on residential property transfers to foreign entities in the Greater Vancouver Regional District.
The additional tax will apply to all applicable transfers registered with the Land Title Office on or after August 2, 2016, regardless of when the contract of purchase and sale was entered into.
To find out more about these recent changes:
- Ministry of Finance Tax Information Sheet
- Additional Property Tranfer Tax Return
- BC Land Title & Survey