BC Imposes Additional 15% Tax On Foreigners Effective August 2, 2016

On July 28, 2016, the BC Government passed legislation to implement changes to the Property Transfer Tax Act. These changes will apply an additional 15% tax on purchases by foreigners of residential property in the Greater Vancouver Regional District (GVRD), excluding Tsawwassen First Nation lands.

Transfers subject to the tax

All registrations at the Land Title Office that occur after August 1, 2016, will be subject to the tax. There is no exception for pre-existing contracts and therefore, all contracts, regardless of when they were entered into, will be subject to the tax.

The tax will apply to foreign nationals, foreign corporations and taxable trustees, which include:

• Individuals who are not citizens or permanent residents of Canada;