Lots of talk these days about the implementation of new taxes. To try and shed some light, here is what we know;
PROPERTY TRANSFER TAX
* Tax rises from 3% to 5% on value of homes over $3,000,000.00.
* Remains at 1% on first $200,000.00, 2% on amounts between $200,000.00 and $2,000,000; 3% on amounts between $2,000,000.00 and $3,000,000.00 and 5%
on amounts over $3,000,000.00.
ADDITIONAL PROPERTY TAX FOR FOREIGN ENTITIES AND TAXABLE TRUSTEES
* Has gone from 15% to 20%, effective February 21, 2018.
* This tax now applies to the Capital Regional District, Fraser Valley Regional District, Regional District of Central Okanagan, Nanaimo Regional District and
Greater Vancouver. The areas for each region can be found at
* Only on residential property; if property is farmland or commercial with a residential component, tax applies on the residential component.
* Exemption for BC Provincial Nominee Program still applies.
This tax has not yet been implemented so I can't provide concrete information, however, this has been introduced so far;
*Will apply to homes owned by people who do not pay tax in B.C., and will be payable on homes in the same areas as the foreign buyers tax.
*If your property is not rented for a minimum of a 6 month period there will be an annual fee, over and above property tax. If you are renting your property for at least 6 months you won't have the fee.
* Tax is meant to target foreign and domestic homeowners who do not pay income tax in B.C. and keep vacant homes
* Tax will apply to same areas as foreign buyers tax apart from Okanagan, where it only applies to Kelowna and West Kelowna.
* Starts in 2018 at $5.00 per $1,000.00 of assessed value, goes up to $20 in 2019.
* Not sure how this will affect vacation homes, nor when this tax is payable.
I’ll keep you posted as we know more.