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ARTICLE · 08 AUGUST 2016

Additional Property Transfer Tax In BC Effective August 2, 2016

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Effective August 2, 2016, a new tax of 15% of fair market value is payable by "foreign nationals" or "foreign corporations" who acquire "residential property" in the Greater Vancouver Regional District.

CanadaTax
Sandra L. Enticknap
Sandra L. Enticknap
Sharon MacMillan
Sharon MacMillan
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Effective August 2, 2016, a new tax of 15% of fair market value is payable by "foreign nationals" or "foreign corporations" who acquire "residential property" in the Greater Vancouver Regional District. This tax is in addition to the current Property Transfer Tax, with the result that a foreign purchaser will be paying between a 16% and 18% transfer tax on residential property. The legislation, surprisingly, does not provide for a transition period or grandfathering, and the tax applies to any transaction registered on or after August 2.

Key issues to be aware of are:

  • A "foreign national" is anyone who is not a Canadian citizen or permanent resident.
  • The definition of "foreign corporation" is complex, but essentially is: (i) any corporation not incorporated in Canada, OR (ii) a Canadian corporation whose shares are not listed on a Canadian exchange and is "controlled" by any of (A) a foreign national, (B) a corporation not incorporated in Canada, or (C) a

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