(Posted on Jul 27, 2016 at 01:00PM by Michelle Bogle)
Earlier this week, the B.C. government took a major step forward in an effort to reduce building pressure in Vancouver's overheated real estate market by introducing legislation that would add a 15% property transfer tax for foreign residential real estate buyers. This new tax is slated to take effect on August 2, 2016, and will only apply to home purchases in Metro Vancouver.
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According to Provincial Finance Minister Mike de Jong, the new tax and legislation will address low vacancy rates in the city, as well as astronomical real estate prices in southern B.C.Â
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It will also generate millions of dollars for the province. For example, if a foreign national purchases a $2 million dollar home, they can expect to pay an additional $300,000 in property transfer tax. That is well above the current 1-3% tax rate that all B.C. residents pay when purchasing a home.
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Here’s B.C. Premier, Christy Clark, with more:
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There is no word if a similar tax will be applied to foreign investments within Vancouver’s commercial real estate market; however, our team of advisors is keeping a watchful eye on the news.
To learn more about real estate taxation in the province of B.C., please contact our office for details.
