In British Columbia, which additional tax applies when a foreign national buys residential property in a specified area such as Metro Vancouver?
Correct Answer
C) Additional property transfer tax at 20%
Property Transfer Tax Act s. 2.02 imposes an additional tax, on top of the general property transfer tax, when a foreign entity or taxable trustee acquires residential property in a specified area. The statutory default rate is 15%, but the prescribed rate has been 20% since February 21, 2018 (Property Transfer Tax Regulation s. 17.02).
Why This Is the Correct Answer
This answer is correct. Section 2.02 imposes the additional tax on the transferee, and Property Transfer Tax Regulation s. 17.02 sets the rate at 20% of the taxable amount (fair market value, or the foreign transferee's proportionate share). It is payable in addition to the general property transfer tax.
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A foreign national buys a $2,000,000 home in Metro Vancouver. How much Property Transfer Tax is payable in total, including the additional tax?
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A first-time buyer purchases a $450,000 home in Ottawa, outside the City of Toronto. Which land transfer tax relief can they claim?