Spagnuolo & Company Lawyers has provided my office with the following information regarding the Foreign Buyers Tax on Metro Vancouver Real Estate.
We just heard that the BC government is increasing the Property Transfer Tax by 15% tax for purchasers who are foreign entities.
Here is what we know:
1. A foreign national is one who is not a Canadian citizen or permanent resident. If it is company that is purchasing, a foreign company is one that is not incorporated in Canada, or incorporated in Canada but controlled in whole or in part by a foreign national or other foreign corporation;
2. The increased tax only applies to properties in the Greater Vancouver Regional District, and does not apply elsewhere in the Province, or the Tsawwassen First Nations Lands;
3. The tax only applies to residential properties, not commercial;
4. This is in addition to the regular Property Transfer Tax to be paid, and is paid on closing;
5. The increased tax is effective August 2, 2016, regardless of when the contract is signed. Even if the contract was signed weeks ago, if it completes after August 2, 2016 there is a higher tax;
6. Lawyers will need to confirm the clients SIN number and compare it to an official government document, such as a passport or SIN card. Clients will need to have such ID;
7. The additional tax is payable even if there would normally be an exemption available. Transfers between related individuals, transmission to surviving joint tenant and other such items now attract the additional tax.
For further details or for more information please contact me directly. If you have a purchase closing over the next week or two you should try to move it up to this week. If your lawyer cannot accommodate this please contact Tony Spagnuolo at Spagnuolo & Company Lawyers to make arrangements.