On August 2, 2016, the Province of British Columbia enacted amendments to the Property Transfer Tax Act (British Columbia) (the “Act”) which introduced a new 15% property transfer tax (colloquially referred to as the “foreign buyer tax”). This tax currently applies when a foreign national or foreign corporation purchases residential property situated in the GVRD. The amendments also include a new anti-avoidance rule applicable to the foreign buyer tax only. This rule has yet to be considered by a Court, but on its face it may affect the ability of a foreign national or foreign corporation to safely avail itself … Continue Reading
On Monday, July 25, 2016, the government of British Columbia announced that foreigners who buy residential property in the Vancouver area will have to pay an extra 15% on top of the current property transfer tax. This additional tax will apply to all buyers who are not Canadian citizens or permanent residents, including corporations that are not registered in Canada or are controlled by foreigners. The tax is expected to come into effect on Tuesday, August 2, 2016.… Continue Reading
In our previous post of February 29 (co-authored by Conrad Rego and Patrick Beechinor) we discussed the implications of the increase in B.C. property transfer tax from 2% to 3% on that portion of a property’s value which exceeds $2 million. We also noted that effective in the Spring, the names and addresses of all beneficiaries of bare trustees are to be disclosed by the transferee upon transfer to any bare trustee. Though no reason was given by the Province for the requirement for beneficiary disclosure, industry participants have surmised that the disclosure may be a precursor for collecting property … Continue Reading
On February 16, 2016, B.C. Finance Minister Mike De Jong delivered the B.C. budget for the 2016/2017 fiscal year starting April 1.
Many commentators have surmised that Premier Christy Clark responded to intense public pressure to address the perception that Metro Vancouver has a housing affordability crisis, with a budget that offers a tax break on the acquisition of new homes and the commitment to start collecting data on foreign buyers. However, little has been written on the implications of the budget on commercial real estate transactions in B.C.… Continue Reading