Recent legislation providing for an additional Property Transfer Tax of 15% on residential property transfers to foreign entities in the Greater Vancouver Regional District has caught the real estate industry off guard.
The retroactive tax which will be applied to contracts completing from 2 August 2016, has inadvertently affected skilled workers and those who are in the process of immigrating to Canada. Calls to exempt accepted agreements have been ignored by the government.
Dan Morrison, president of REBGV has said “While we’re unhappy with the approach the government has taken, this tax is now law. We must all ensure we’re doing what we can to help our clients understand and comply with the new tax.”
Anyone who fails to pay the tax, or who provides incorrect information to avoid the tax, could face fines up to $100,000 or two years in prison, FICOM said in a warning last week.
It remains to be seen how this will affect prices of real estate in Metro Vancouver, and other cities in Canada.
If you have any questions or comments about the new tax, please get in touch.
We are moving into what is typically the second busiest period of the year for home sales. If you are thinking about putting your home on the market or purchasing a new home, I am more than happy to be of service. Please give me a call.