As of August 2, 2016, an additional property transfer tax will be applied to residential property transfers to foreign entities in the Greater Vancouver Regional District.
Okay, so what does this really mean?
First lets define the terms:
A foreign national is anyone who "is not a Canadian citizen or permanent resident of Canada, including a stateless person.
A foreign corporation is a corporation who is not incorporated in Canada, or is a corporation that is incorporated in Canada but is controlled in whole or in part by a foreign national or other foreign corporation (unless the shares of a corporation are listed on the Canadian stock exchange.
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.
If you fall into any of these categories, you are required to pay an extra 15% property transfer tax on the day your residential sale closes. You need to have this money in order to complete.
The extra property transfer tax applies to all transfers registered at the land title office on or after August 2, 2016 regardless of when the contract of purchase and sale was entered into.
I'm sure we all know someone who has been directly or indirectly affected by this new legislation. Please leave comments below.