Foreign Buyer Tax Survives Constitutional Challenge

What is the Foreign Buyer Tax?

The foreign buyer tax is a property transfer tax in Ontario and British Columbia. The foreign buyer tax is imposed by the provincial governments under their land transfer tax statutes. It is payable in addition to the normal land transfer tax.

Who Pays the Foreign Buyer Tax?

The foreign buyer tax is payable by a "foreign entity" and "taxable trustee" on certain purchases. A foreign entity is either a "foreign corporation" or a "foreign national." See our discussion of taxable trustees here.

A foreign corporation is one that is (1) not incorporated in Canada; or (2) incorporated in Canada but controlled by either a foreign national, a corporation not incorporated in Canada, or a combination of the two.