BC Property Transfer Tax & Foreign Buyer Tax Increase

There were significant changes with the BC Budget today affecting real estate. The Property Transfer Tax will be increased to 5% on the purchase price above $3,000,000 effective tomorrow, February 21, 2018, and the Foreign Buyer Tax has been increased from 15% to 20% as of tomorrow and expanded to areas outside of Metro Vancouver (Fraser Valley, Okanagan, Kamloops, Greater Victoria and Nanaimo Regional District).

There is also a speculation tax on properties owned by individuals not paying Income Tax in BC and that keep the property vacant. This tax is meant to target foreign and domestic homeowners who do not pay income tax in B.C. The tax will be 0.5% of assessed value in 2018 increased to 2% in 2019 for all areas affected by the Foreign Buyer Tax. The government will be releasing more details over the next few months, but for now, they've provided this speculation tax information bulletin.

More details: