BC & Ontario Governments Non Resident Tax Update

Premier and BC Gov’t Revises 15% Non Resident Property Transfer Tax

The BC Premier & Government recently implemented positive changes to the 15% Non Resident Property Purchase Tax & announced a Refund Policy for Non-Resident Buyers who were unfairly caught by the sudden announcement of the Tax on July 29, 2016. Non Resident Buyers may now claim a refund if they paid the additional 15% Tax as long as they were confirmed as a B.C. Provincial Nominee between August 2, 2016 & March 17, 2017, & also if they became a Permanent Resident or Canadian Citizen within one year of the property transfer being registered. To qualify for the refund, the home must be their principal residence, they moved into the home within 92 days of the date the transfer was registered, & have lived in the home as their principal residence for at least one full year after that. They must apply for a refund within 18 months from the date the property transfer was registered.

Ontario Follows Suit with their Own 15% Non Resident Property Transfer Tax

Ontario is following British Columbia's lead, promising to introduce a tax on foreign homebuyers that the province hopes will help cool the frantic housing market, easing concerns about a potential bubble in Canada's fastest growing urban region. The 15% "Non Resident speculation tax" was among 16 housing measures the provincial gov’t announced, which also included a promise to expand rent control, allow Toronto to impose a vacant homes tax & use surplus provincial lands for affordable housing. Some economists were skeptical about the impact the new tax would have on house prices, noting that all 3 levels of governments admit they lack housing market data. CIBC economist Benjamin Tal doesn't believe there are enough foreign buyers in the Toronto-area market for the tax to have a lasting effect, but predicts a short-term slowdown in the market once the measures are in place. The Ontario Government promises that the new tax would not target immigrants, & a rebate would be available to foreigners who work in Ontario, those who subsequently get citizenship or permanent resident status & international students. Once legislation passes, it will be effective retroactively to April 21, 2017. Call Bob Bracken anytime to discuss this topic and real estate.

If you are looking to sell or buy real estate or wish to discuss further any topic on Real Estate, please contact Bob Bracken at 604-220-2035 cell, 604-263-2823 office, or email.

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