The British Columbia government is implementing a 15 per cent foreign buyer tax on all residential transactions in Metro Vancouver effective August 2, 2016.
The tax will be added to the Property Transfer Tax (PTT) and will apply to all residential properties bought by foreign nationals or foreign-controlled corporations.
The new PTT will be payable on property registered with the Land Title Office on or after August 2 regardless of when the contract was written.
The tax will apply to:
- any buyer who is a foreign national;
- a foreign corporation; or
- a taxable trustee.
Foreign nationals are defined as anyone who isn’t a Canadian citizen or doesn’t have permanent resident status in Canada. (Permanent residents will have a valid permanent resident card issued by the Canadian government).
Here is an informative real estate law blog post from Lawson Lundell. Digging deeper into the new foreign entity tax by real estate lawyers, including Ed Wilson.
Also from Lawson Lundell, New Property Tax for Foreign Buyers.
Important documents from the BC Ministry of Finance
Action of foreign investment, consumer protection and vacancy puts British Columbians first
Foreign ownership of residential properties
Data tables of foreign buyers, by municipality
Housing market information, June 10 – July 14