British Columbia increased the additional property transfer tax on residential property transfers to foreign entities

Effective 21 February 2018, the Canadian Province of British Columbia increased the additional property transfer tax on residential property transfers to foreign entities, to 20%, up from 15%, and extended its territorial application to include the Capital Regional District, the Fraser Valley, the Central Okanagan and the Nanaimo Regional District. The additional tax that foreigners have to pay was initially introduced on 2 August 2016 for the Greater Vancouver Regional District of British Columbia. The tax does not apply to non-residential property, or to trusts that are mutual fund trusts, real estate investment trusts or specified investment flow-through trusts.

• Type:

  • Entry and establishment (Access to land)

• Industry:

  • Not industry specific

• Sources:

  • British Columbia government website, Additional Property Transfer Tax for Foreign Entities & Taxable Trustees, https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax, 21 Feb 2018
  • Ministry of Finance - Province of British Columbia, Budget and Fiscal Plan, http://bcbudget.gov.bc.ca/2018/bfp/2018_Budget_and_Fiscal_Plan.pdf, 20 Feb 2018
  • Bloomberg, Vancouver's Hot Housing Market Gets Tougher for Wealthy Chinese, https://www.bloomberg.com/news/articles/2018-02-20/british-columbia-extends-housing-crackdown-with-tax-increases, 20 Feb 2018