British Columbia’s New Foreign Tax

As we all know the Toronto Real Estate market just keeps getting stronger and stronger. British Columbia’s real estate market on the other hand is out of control. In an effort to curb sales in Vancouver, B.C., the government has implemented a new tax on residential real estate purchases for buyers who are not either a Canadian citizen or permanent resident.

Vancouver condos

Property buyers in Vancouver will be subject to additional 15% tax ( based on the purchase price) on top of the already existing land transfer tax. Revenue from this tax will be used to fund housing and rental programs. This new tax is an attempt to cool the market and have prices soften in an effort to make real estate more affordable. What impact this will have on the market is unknown at the moment but experts say loopholes in the new policy will be found. Once again, only time will tell on this one.

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