The New Foreign Buyer and Property Transfer Taxes
The 2018 BC Budget was just announced introducing new taxes for real estate.
Foreign Buyer Tax
– Effective Feb. 21, 2018, the foreign buyer tax will increase to 20 per cent (from 15 per cent) and will be extended to the Fraser Valley, Capital, Nanaimo, and Central Okanagan Regional Districts. Contracts written before Feb 20th, 2018 with a closing date on or before May 2018 are exempted.
– Effective, Feb 21st, 2018 The Property Transfer Tax on residential properties over $3million will increase to 5% (5% on the value over $3 million – up from 3%)
Provincial School Tax
– Beginning in 2019, the provincial school tax will increase on most residential properties in excess of $3 million.
The budget cancelled the B.C. Home Owner interest-free mortgage program for first-time buyers.