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B.C. brings in 15% property tax for foreign buyers

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BC brings in 15% property tax for foreign buyers
LOCAL
by NEWS 1130 STAFF
Posted Jul 25, 2016 10:34 am PDT Last Updated Jul 25, 2016 at 10:55 am PDT

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METRO VANCOUVER (NEWS 1130) – Foreign owners who buy Metro Vancouver residential real estate will have to pay a lot more in provincial property transfer tax.

The BC government is bringing in a 15 per cent tax on sales to foreign nationals.

To put that in perspective, the tax will amount to a $300,000 extra charge on a $2-million home.

The change comes into effect next Tuesday (Aug 2). It will not apply to homes bought on Tsawwassen First Nation land.

“The data we started collecting earlier this summer is showing that foreign nationals invested more than $1 billion into BC property between June 10 and July 14, more than 86% of it in the Lower Mainland,” says Finance Minister Michael de Jong.

“While investment from outside Canada is only one factor driving price increases, it represents an additional source of pressure on a market struggling to build enough new homes to keep up. This additional tax on foreign purchases will help manage foreign demand while new homes are built to meet local needs.”

The legislative package would also enable the City of Vancouver to amend its community charter in order to levy a vacancy tax.

Data collected over a three-week period shows five per cent of sales in Metro Vancouver during that time frame went to foreign buyers.

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