15% tax hits non-resident home buyers in GVRD

15% tax post buy-sell.jpg

WHAT?   Residential properties

WHERE?   the Greater Vancouver Regional District

WHEN?   Any transaction closing on or after 2016 Aug 2, including deals already signed which do not close before then.

WHO?    Individuals who are neither Canadian citizen nor permanent residents as well as ‘non-resident companies’.

HOW MUCH?   15% of the fair market value of the property, over and above the property transfer tax already in place..

 Finance Minister  Mike de Jong

Finance Minister
Mike de Jong

WHY?   Officially, Finance Minister Michael de Jong states “While investment from outside Canada is only one factor driving price increases, it represents an additional source of pressure on a market struggling to build enough new homes to keep up. This additional tax on foreign purchases will help manage foreign demand while new homes are built to meet local needs.”

The above is general information only and not professional advice. Readers are cautioned against making any decisions based on this material, instead, advice from specific professionals should be sought.