Since taking office, B.C. Premier John Horgan has introduced a speculation tax, increased the rate and scope of the foreign buyers tax and implemented an additional school tax.
Which properties are affected?
All residential properties assessed over $400,000 that are not being claimed as primary residences. If a secondary property is rented out as a long-term rental, it will be exempt from the tax.
In 2018, the property must be rented out for just three months of the year. You will be exempt from the tax if you sell your property! Contact Dustin Miller if you’re considering selling your secondary property.
From 2019, a long-term rental property will be one where the owner is not living in the property but is able to rent it out for more than six months per year. The property can be rented multiple times in a year, but each tenancy must last at least 30 days.
Metro Vancouver, the Capital Regional District (but excluding the Gulf Islands and the Strait of Juan de Fuca), Kelowna, West Kelowna, Nanaimo-Lantzville, Abbotsford, Chilliwack and Mission.
All properties that are affected by the tax will pay a rate of 0.5 per cent in 2018 regardless of the owners place of residence. In 2019, the rates will change.
If the property is in Vancouver proper an additional 1.00% municipal empty home tax will apply.
From 2019, B.C. residents who are subject to the tax will continue to pay a rate of 0.5 per cent. BC Residents will be eligible for a $2,000 rebate because properties valued below $400,000 are exempt from the Speculation Tax.
Example on a $1,000,000 property
British Columbia Residents:
$5,000 – $2,000 rebate = $3,000
Alberta / Ontario Residents:
Canadians from outside B.C. who have properties in the province that are subject to the tax will pay a 1 per cent tax rate
$10,000 + property tax
If the property is in Vancouver proper an additional $10,000 municipal empty home tax will apply.
Out of Country / USA / Foreign Residents:
non-Canadians will be hit with a 2 per cent rate.
$20,000 + property tax
If the property is in Vancouver proper an additional $10,000 municipal empty home tax will apply
For more information on the tax refer to https://www2.gov.bc.ca/assets/gov/taxes/property-taxes/publications/is-2018-001-speculation-tax.pdf
Some examples of Non-BC residents selling in Victoria
4-408 Dallas Road
Shoal Point – Since Febuary 20th, 20 listings, there are currently 14 ACTIVE LISTINGS!!