Foreign buyers in Vancouver hit with additional 15% property transfer tax
The provincial government has announced plans to increase property transfer tax rate by 15% for foreign buyers of real estate in Metro Vancouver.
“The additional tax will take effect Aug. 2, 2016, and will apply to foreign entities registering their purchase of residential property in Metro Vancouver, excluding the treaty lands of the Tsawwassen First Nation,” reads a press release issued Monday.
Daily Hive has verified the new tax will not apply to permanent residents, but it will apply to temporary foreign workers.
“The data we started collecting earlier this summer is showing that foreign nationals invested more than $1 billion into B.C. property between June 10 and July 14, more than 86% of it in the Lower Mainland,” said Finance Minister Michael de Jong in the release.
“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 government says it is also introducing other initiatives to try to tackle the housing crisis in Vancouver:
creating a $75-million Housing Priority Initiatives Fund for provincial housing and rental programs
amending the Real Estate Services Act to end self-regulation of the real estate industry
amending the Vancouver Charter to allow the city to implement and administer a tax on vacant homes
“Owning a home should be accessible to middle-class families, and those who are in a position to rent should be able to find a suitable home,”Premier Christy Clark said in the release.
“These changes are about helping to make sure that British Columbians can continue to live, work and raise their families in our vibrant communities.”
For full details of the financial implications of the foreign buyer’s property transfer tax increase, check the government’s info sheet: Additional Property Transfer Tax
Vancouver's foreign buyers hit with additional 15% property transfer tax
The provincial government has announced plans to increase property transfer tax rate by 15% for foreign buyers of real estate in Metro Vancouver.
“The additional tax will take effect Aug. 2, 2016, and will apply to foreign entities registering their purchase of residential property in Metro Vancouver, excluding the treaty lands of the Tsawwassen First Nation,” reads a press release issued Monday.
Daily Hive has verified the new tax will not apply to permanent residents, but it will apply to temporary foreign workers.
“The data we started collecting earlier this summer is showing that foreign nationals invested more than $1 billion into B.C. property between June 10 and July 14, more than 86% of it in the Lower Mainland,” said Finance Minister Michael de Jong in the release.
“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 government says it is also introducing other initiatives to try to tackle the housing crisis in Vancouver:
creating a $75-million Housing Priority Initiatives Fund for provincial housing and rental programs
amending the Real Estate Services Act to end self-regulation of the real estate industry
amending the Vancouver Charter to allow the city to implement and administer a tax on vacant homes
“Owning a home should be accessible to middle-class families, and those who are in a position to rent should be able to find a suitable home,”Premier Christy Clark said in the release.
“These changes are about helping to make sure that British Columbians can continue to live, work and raise their families in our vibrant communities.”
For full details of the financial implications of the foreign buyer’s property transfer tax increase, check the government’s info sheet: Additional Property Transfer Tax
Vancouver's foreign buyers hit with additional 15% property transfer tax
