Breaking News: A Major Change to the 15% Foreign Buyers Tax

Last year in July, the Government of BC introduced a 15% tax on foreign buyers as a way of cooling down the red hot Vancouver real estate market. According to BC’s Premier Christy Clark, the tax has worked as it has slowed down the “incredible distortion in the market” and had the required impact it was set out to do.

With this in mind, the government has decided that now is the time to make changes to the tax. So the Premier chose to make an announcement, which, some may argue, is influenced by the current immigration chaos that is running rampant in the US.

At the Chines New Year parade last Sunday, the Premier said that the BC Government is lifting the 15 per cent foreign buyers tax for anyone living in Metro Vancouver with a work permit, who pays taxes and contributes to the economy, and wants to purchase a home.

The move is to encourage skilled immigrants to move to BC, especially those who have been affected by US President Trump’s executive order, banning travel and immigration into the US for people from 7 Middle Eastern and North African countries. Those who had previously considered moving to BC, but were discouraged by the 15% tax, will no longer face this obstacle.

The Premier made a direct reference to Google, Microsoft and Facebook encouraging them to consider sending more employees to Vancouver and beef up their local presence, especially if they are worried about the legal status of their employees’ residence in the US. They will not be subject to the tax.

Canada has had a history of allowing victims of persecution a safe haven within its boundaries, and the government of this province is no exception to this. It seeks to attract the best and brightest to our shores, no matter where they come from, as long as they pay taxes and make a positive contribution to our economy.

There are lots of opportunities available in the Vancouver housing market. If you contact us on 604 913 1000 or email us, our experienced and professional real estate advisors will be able to assist you in any way shape or form.

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