Effective August 2, 2016, an additional property transfer tax applies to residential property transfers to foreign entities in the Greater Vancouver Regional District.
The additional tax applies on all applicable transfers registered with the Land Title Office on or after August 2, 2016, regardless of when the contract of purchase and sale was entered into.
The Greater Vancouver Regional District includes Anmore, Belcarra, Bowen Island, Burnaby, Coquitlam, Delta, Langley City and Township, Lion’s Bay, Maple Ridge, New Westminster, North Vancouver City and District, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, Surrey, Vancouver, West Vancouver, White Rock and Electoral Area A.
The additional tax does not apply to properties located on Tsawwassen First Nation lands.
Who this effects:
-Foreign corporations or taxable trustees
– Foreign nationals are transferees who are not Canadian citizens or permanent residents, including stateless persons.
It also included Foreign corporations:
– Not incorporated in Canada
– Incorporated in Canada, but controlled in whole or in part by a foreign national or other foreign corporation, unless the shares of the corporation are listed on a Canadian stock exchange
-Taxable trustees that are a foreign national or foreign corporation, or a beneficiary of a trust that is a foreign national or foreign corporation.
When does it apply?
The additional tax on property transfers to foreign entities is 15% of the fair market value of the foreign entity’s share of a residential property
This tax applies in addition to the general property transfer tax.
The additional tax does not apply to non-residential property. The value of the residential portion of a transfer is calculated in the same way as for the property transfer tax.
The additional tax does not apply to trusts that are mutual fund trusts, real estate investment trusts or specified investment flow-through trusts.
The additional tax must be paid with the general property transfer tax at the time the property transfer is registered with the Land Title Office.
Municipalities are also perusing the thought of vacant home tax so stay tuned there may it more to come!