Additional Property Tax Now Payable in BC

23 Feb Property Transfer Tax for Foreign Buyers Now in the Capital Regional District

Posted at 18:44h in Real Estate by
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In August of 2016, British Columbia enacted a property transfer tax whereby foreign buyers purchasing property in Metro Vancouver were charged a 15% tax on the fair market value of the property.  In the 2018 Budget, the tax was increased to 20% and expanded to include the following areas:

  • the Capital Regional District;
  • Nanaimo;
  • the Fraser Valley; and
  • Kelowna

There are some transitional rules associated with the additional property transfer tax, which are as follows:

  • The additional tax does not have to be paid if the registration of the purchase occurs on or before May 18, 2018 and the contract of purchase and sale was dated on or before February 20, 2018;
  • The additional tax does not have to be paid, regardless of the transfer date, if:
    • The property transfer is subject to a court order dated on or before February 20, 2018;
    • The property transfer is subject to an order nisi of foreclosure dated on or before February 20, 2018;
    • The property transfer is subject to a separation agreement which was signed on or before February 20, 2018;
    • The property transfer is from the personal representative of a deceased’s estate to the beneficiary and the death of the deceased occurred on or before February 20, 2018; or
    • The property transfer is to a surviving joint tenant where the death occurred on or before February 20, 2018.

If you are purchasing or selling real estate and have any questions please feel free to contact the lawyers at Sitka Law Group.  We can assist your questions and closing the property transfer.

 

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