Additional Property Transfer Tax on Residential Property Transfers to Foreign Entities in the Greater Vancouver Regional District
Property Transfer Tax Act Effective August 2, 2016, an additional property transfer tax applies to residential property transfers to foreign entities in the Greater Vancouver Regional District.
Where it applies to:
The Greater Vancouver Regional District includes Anmore, Belcarra, Bowen Island, Burnaby, Coquitlam, Delta, Langley City and Township, Lion’s Bay, Maple Ridge, New Westminster, North Vancouver City and District, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, Surrey, Vancouver, West Vancouver, White Rock and Electoral Area A. The additional tax does not apply to properties located on Tsawwassen First Nation lands.
When it applies:
The additional tax applies on all applicable transfers registered with the Land Title Office on or after August 2, 2016, regardless of when the contract of purchase and sale was entered into.
Who it applies to:
Foreign Entities Foreign entities are transferees that are foreign nationals, foreign corporations or taxable trustees.
Foreign nationals are transferees who are not Canadian citizens or permanent residents, including stateless persons.
Foreign corporations are transferees that are corporations:
• not incorporated in Canada or
• incorporated in Canada, but controlled in whole or in part by a foreign national or other foreign corporation, unless the shares of the corporation are listed on a Canadian stock exchange. Additional Property Transfer Tax on Residential Property Transfers to Foreign Entities
Taxable trustees are trustees that are a foreign national or foreign corporation, or a beneficiary of a trust that is a foreign national or foreign corporation.
Applying the Additional Tax
The additional tax on property transfers to foreign entities is 15% of the fair market value of the foreign entity’s proportionate share of a residential property located in whole or in part in the Greater Vancouver Regional District, excluding Tsawwassen First Nation lands. This tax applies in addition to the general property transfer tax. The additional tax does not apply to non-residential property. The value of the residential portion of a transfer is calculated in the same way as for the property transfer tax. The additional tax applies on the foreign entity’s proportionate share of any applicable residential property transfer, even when the transaction may normally be exempt from property transfer tax.
This includes transactions such as:
• a transfer between related individuals
• a transfer resulting from an amalgamation
• a transfer to a surviving joint tenant
• a transfer where the transferee is or becomes a trustee in relation to the property, even if the trust does not change The additional tax does not apply to trusts that are mutual fund trusts, real estate investment trusts or specified investment flow-through trusts.
Selling a Revenue Property in Vancouver 1 | Capital Gains Tax and Deducting Real Estate Commissions in Canada
So, you’ve decided to sell an investment condo or other revenue property in Vancouver. The first thing you’ll want to do is talk with your mortgage lender to check how much your mortgage penalties are going to be.
Once there is clarity on the costs to end the mortgage you have to consider The Taxman, aka Canada Revenue Agency (CRA).
Thinking of Selling?
Use this form to find out how to sell your home sooner and for more money.
I recently had the pleasure of meeting with Vancouver Accountant Sean Akeroyd with Akeroyd & Leung about the tax implications of selling an investment property in Canada.
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New Relief for First Time Home Buyers and Increased HST Rebate for New Homes & Others!
I recently had the pleasure of interviewing Sean Akeroyd of Akeroyd Leung in Vancouver about some changes to the HST in the 2012 BC Budget and here’s what’s new:
First-Time New Home Buyers Bonus
The 2012 British Columbia Budget has some great goodies for the first time buyers of newly built properties. Effective February 21, 2012, to March 31, 2013, the $10,000 B.C. First-Time New Home Buyers’ Bonus will give a temporary, refundable income tax Continue Reading…
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When the Harmonized Sales Tax (HST) replaced British Columbia’s Provincial Sales Tax (PST) and the Federal Goods and Services Tax (GST) July 1st, 2010 there was a LOT of confusion among those interested in Vancouver Real Estate to say the least!
One of the greatest misconceptions about the HST was that the Harmonized Sales Tax was payable on all real estate transactions in BC.
I speak to a lot of people about Presales in Vancouver and a constant question I hear is “Do I have to pay the full 12% on any new property or presale in Vancouver?” to which I answer “No, there is an HST Rebate in BC.” The next question is a toughie and is always “How much is the HST Rebate on new property in BC?” which until recently I would answer with “I don’t know exactly, best to ask your accountant…” Not anymore!
I found this great Net Harmonized Sales Tax (HST) and Net Property Transfer Tax Calculator that actually calculates the NET taxes payable on a new home purchase here in BC.
This tool calculates the HST rebate as well as the First Time Home Buyers Exemption for BC Property Transfer Tax. Remember, I am not an accountant and I am NOT giving tax advice. Confirm all tax details and calculations with your accountant.