The position paper contained three recommendations for the provincial government:
- amend the current Property Transfer Tax Act to provide for a new Primary Residence Grant;
- continue to increase the threshold for the First Time Home Buyers exemption; and
- introduce a new Property Transfer Tax rate of a minimum of 2% of the property purchase price for all property in British Columbia bought by non-residents of Canada or corporations controlled by non-residents.
On Monday, July 25th, the Province announced an additional property transfer tax rate of 15% that will apply to purchasers of residential real estate who are foreign nationals or foreign-controlled corporations. The additional tax will take effect Aug. 2, 2016, and will apply to foreign entities registering their purchase of residential property in Metro Vancouver, excluding the treaty lands of the Tsawwassen First Nation.(See the full announcement here)
This morning, we issued a news release in response to this announcement, acknowledging government for implementing the change, in addition to some further recommendations to ensure a more user-friendly Property Transfer Tax is established.
Read the full news release here.