As we previously wrote, the B.C. government has considered changes to the additional tax on foreign home buyers in Vancouver in order to remain attractive to prospective employees. On March 17, the province confirmed the scope of their changes.
Effective immediately, individual workers coming to the province through the B.C. Provincial Nominee Program (PNP) may be exempt from the additional property transfer tax. Qualifications for the exemption include:
- you must be confirmed as a B.C. Provincial Nominee before the property transfer is registered with the Land Title Office; and
- the property must be used as your principal residence.
If you qualify for the PNP exemption and purchased a principal residence since the tax has come into effect (between August 2, 2016 and March 17, 2017), you can apply for a refund of any additional tax you paid through the government's website.
The changes will also affect foreign nationals who become permanent residents or Canadian citizens within one year of purchasing a principal residence. Although the additional property transfer tax will need to be paid at the time of the purchase, you may be eligible for a rebate. Eligibility requirements include:
- moving into the home within 92 days of the date the property transfer was registered; and
- continuously residing in the property as your principal residence for one full year following the purchase.
Qualifying individuals will be able to apply for this refund beginning August 2, 2017.
In both cases, the exemption or refund can only be claimed once. If another property is purchased as a foreign national, the additional property transfer tax will have to be paid.
The area affected by the tax – 22 communities in Metro Vancouver – remains unchanged.
If you have questions about your specific situation, contact Auxilium Mortgage today for a free consultation with one of our brokers: call Toll-Free 1-855-590-6520 or visit us at 307 Goldstream Avenue during regular business hours, Monday through Friday 8:30 a.m. – 5:00 p.m. We can also arrange an appointment evenings or weekends to work with you.
Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.