Foreign-buyers tax facts for kids

The Foreign-buyers tax is a property transfer tax of 15% on residential property purchased by foreign buyers in British Columbia. A property transfer tax is paid only once for each property owner, while property taxes are paid every year.

The tax involved amendments to the Property Transfer Tax Act imposing an additional property transfer tax of 15% of the assessed value on property purchased by those who are neither citizens nor residents of Canada. It is part of the omnibus legislation Miscellaneous Statutes (Housing Priority Initiatives) Amendment Act, 2016. It was introduced after calls urging the British Columbia provincial government to intervene in the housing market and curb foreign investment that was seen as a major contributor to the rapid rise in home prices.