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February 2018 - BC Budget Day - What you need 2 know right now - foreign buyer tax


Blog by Maria Furtado | February 20th, 2018


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Today Minister of Finance Carole James announced the new BC budget. This is the first budget since 2001 to be delivered by the NDP and their word from the start was that HOUSING was going to be a big part. 

So...what has the government announced that will affect you and your clients? 

As of tomorrow - February 21, a 20% Foreign Buyer Tax will be levied on purchases in the Capital Region - according to the BCREA this tax will have an immediate impact on transactions underway, but there are some transitional rules, outlined below. 

PLEASE NOTE that we do not have the definition of a written "agreement" as used in these transitional rules. We have reached out to determine the definition and will pass that information on to you as soon as we have it. 

Transitional Rules
If the property is located in the Capital Regional District, Fraser Valley Regional District, Regional District of Central Okanagan or Nanaimo Regional District and the property transfer is registered on or after February 21, 2018, there are two instances where you don't have to pay the additional property transfer tax:       
1. You don't have to pay the additional property transfer tax if the registration occurs before or on May 18, 2018 and the property transfer is subject to a written agreement dated on or before February 20, 2018. Otherwise you will have to pay the additional property transfer tax.
 
Note: If the written agreement is assigned to a foreign entity or taxable trustee on or after February 21, 2018, the additional property transfer tax must be paid.
  
2.     You don't have to pay the additional property transfer tax and your property can be registered at any time if:
    • The property transfer is subject to a court order dated on or before February 20, 2018
    • The property transfer is subject to an Order Nisi of Foreclosure dated on or before February 20, 2018
    • The property transfer is subject to a separation agreement which was signed on or before February 20, 2018
    • The property transfer is from the personal representative of a deceased's estate to the beneficiary and the death of the deceased occurred on or before February 20, 2018
    • The property transfer is to a surviving joint tenant when the death of the deceased occurred on or before February 20, 2018
You can find the above info and more on the government's website

Also live tomorrow is an increased Property Transfer Tax for properties over $3 million. The Property Transfer Tax will increase to 5 per cent for properties over $3 million.

The Minister of Finance also announced that a speculation tax will roll out in Fall 2018. Find more information on this at the end of this newsletter.  


Credit: 2018 Victoria Real Estate Board. All Rights Reserved.
Victoria Real Estate Board, 3035 Nanaimo Street, Victoria, BC V8T 4W2 Canada