Foreign buyers in Vancouver hit with additional 15% property transfer tax

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
lone wolf
Ohhh ... I smell off-shore lawyers circling already. Guano, eh....
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The 15% tax will not deter the foreign buyers of property in Vancouver on bit.

The 15% tax is a drop in the bucket for foreign buyers wanting to get their money otta countries like China.

When you consider the price increases in Vancouver over the past few years, how can you expect only 15% be a deterrent.
lone wolf
Detriment ... or cash cow? Think like a government
The booming housing market benefits the constituents and friends of the BC Liberal party and some municipal politicians (rich national, international elites, big landowners developers and speculators) as well as the governments themselves with increased tax revenues. Cooling down the housing market is not in their interests. This tax increase is only meant to increase the government's cut, and maybe give the illusion that something is being down.
White stock Canadians will soon get fed up with paying the increase taxes and those who voted Liberal in the past will eventually change their votes.

It's only immigrants, who live here now because they screwed up their country, will continue to make bad voting decisions.
lone wolf
I read the tax was on foreign buyers....
Kill the golden goose.