Canada's B.C. province to tax foreign buyers of Vancouver homes

The provincial government of British Columbia in west Canada introduced legislation on Monday to add a 15 percent property transfer tax on foreigners buying real estate in Metro Vancouver.

Provincial Finance Minister Mike de Jong announced the new decision as part of legislation aimed at addressing low vacancy rates and high real estate prices in Vancouver and its surrounding cities.

The tax would increase the property transfer tax on non-Canadian citizens or non-permanent residents purchasing homes in Metro Vancouver starting from August 2.

"For example, the additional tax on the purchase of a home selling for 2 million CAD (1.52 million U.S. dollars) to a foreign national will amount to an additional 300,000 CAD," de Jong said at the legislature in Victoria, the provincial capital in Vancouver island.

All B.C. residents currently pay a one percent tax on the first 200,000 CAD of their purchase, two percent on the remaining value up to 2 million CAD and three percent on any portion above that.

"The amendments include anti-avoidance rules designed to capture transactions that are structured specifically to avoid the additional tax," de Jong said.

He added that the revenue from the additional tax would be used to fund housing, rental and support programs.

De Jong said recent government housing data indicate foreign nationals spent more than 1 billion dollars on B.C. property between June 10 and July 14, with 86 percent on purchases in the Lower Mainland area. Endit