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An additional Property Transfer Tax applies to residential property transfers to foreign entities in the Greater Vancouver Regional District. The additional tax to foreign entities is 15% of the fair market value of the foreign entity’s proportionate share of a residential property located in whole or in part in the Greater Vancouver Regional District, excluding Tsawwassen First Nation lands. This tax applies in addition to the general Property Transfer Tax.
 
The additional tax does not apply to non-residential property. The value of the residential portion of a transfer is calculated in the same way as for the property transfer tax.
 
The additional tax applies on the foreign entity’s proportionate share of any applicable residential property transfer, even when the transaction may normally
be exempt from Property Transfer Tax. This includes transactions such as:
• a transfer between related individuals
• a transfer resulting from an amalgamation
• a transfer to a surviving joint tenant
• a transfer where the transferee is or becomes a trustee in relation to the property, even if the trust does not change.
 
The additional tax does not apply to trusts that are mutual fund trusts, real estate investment trusts or specified investment flow-through trusts.

Who will be Taxed?
 
Foreign entities are transferees that are foreign nationals, foreign corporations or taxable trustees.
 
Foreign nationals are transferees who are not Canadian citizens or permanent residents, including stateless persons.
 
Foreign corporations are transferees that are corporations:
• not incorporated in Canada or
• incorporated in Canada, but controlled In whole or in part by a foreign national or other foreign corporation, unless the shares of the corporation are listed on a Canadian stock exchange
 
Source: Ministry of Finance Tax Information Sheet. Issue July 2016

For more information of how this may affect you,
     call Eva Li today at 604-351-0789
 
For prompt, polite and professional service, always contact Eva Li of RE/MAX Central Realty