Foreign Buyers Tax BC
Foreign Buyer Residential BC Property Purchase
* The information on this website is not legal advice, and it is not intended to be legal advice. You must consult a lawyer for individual advice regarding your own situation. Please contact me directly for a local Real Estate or Tax Lawyer recommendation *
A foreign buyer is unrestricted, and can purchase many residential properties in British Columbia. Income tax implication should be discussed with local accountant or tax lawyer. Non-residents of Canada can be subject to income which includes including rental income.
Foreign buyers of British Columbia residential property, including non-residents, non-citizens, and potentially permanent residents, may be subject to a one-time Property Transfer Tax equal to 20% of the Purchase Price. This is the Foreign Buyer Property Transfer Tax, or FBPTT.
The areas designated by the government of BC to subject to this foreign buyer tax include:
- Capital Regional District of Greater Victoria
- Regional District of Nanaimo
- Greater Vancouver Regional District
- Fraser Valley Regional District
- Regional District of Central Okanagan
These rules are subject to change so please consult your lawyer and accountant.
You can find more details from the BC Government HERE
Who is a Non-Resident?
Please bear in mind that the Canadian and British Columbia Income Tax Acts change frequently.
For the FBPTT is clear that the tax obligation relates to a person that is not a Canadian citizen, Permanent Resident or signed up under the Provincial Nominee Program. A different interpretation applies for income tax obligation, as the term “resident” is not defined in the Income Tax Act. The courts have actually held that a person is “normally resident” in Canada for tax objectives if Canada is the location where the individual, in the settled routine of his or her life, frequently, generally or customarily lives.