What additional Property Transfer Tax rate is imposed on foreign nationals and foreign corporations purchasing residential property in specified areas of BC?
Correct Answer
A) 20%
Foreign nationals, foreign corporations and taxable trustees acquiring residential property in a specified area pay an additional 20% property transfer tax under Property Transfer Tax Act s. 2.02, at the rate set by Property Transfer Tax Regulation s. 17.02, on top of the general property transfer tax. The specified areas are Metro Vancouver and the Capital, Central Okanagan, Fraser Valley and Nanaimo regional districts.
Why This Is the Correct Answer
This answer is correct. Property Transfer Tax Regulation s. 17.02 prescribes a rate of 20% for the additional tax under s. 2.02(4) of the Act, applied to the fair market value (or the foreign transferee's share) of residential property in a specified area.
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