New Foreign Real Estate Tax in Metro Vancouver!
If you are a foreigner planning on buying real estate in Metro Vancouver you need to BUY and CLOSE THIS WEEK! Starting August 2nd the B.C. government is introducing new legislation that will add a 15% Property Transfer Tax for any foreign nationals buying real estate in Metro Vancouver. That means on a $2M property, foreign buyers will now be paying an extra $300,000!!!!
The increased tax will be payable on any deals closing after August 2, 2016 regardless of when the purchase agreement for the property was entered into. The additional tax applies on a foreign entity’s proportionate share of any applicable residential property transfer, even in certain circumstances when the transaction may normally be exempt from property transfer tax.
The current Property Transfer tax is 1% on the first $200,000, 2% on the remaining value up to $2M and 3% on the portion above $2M.
The revenue from the new Foreign Property Transfer Tax will be used to fund housing, rental and support programs.
Lake Okanagan Realty Ltd.
Tel: (250) 870-2792