The BC Government released Budget 2018 today. As it relates to housing, the government made changes to the foreign buyers tax, and added a new speculation tax.

Foreign Buyers Tax – This is really an enhancement to the tax that is already in place, effective Wednesday, the government will increase the foreign buyers tax from 15% to 20%.The tax will be extended to the Fraser Valley, the capital regional districts in Victoria and Nanaimo and the Central Okanagan Regional Districts, instead of simply being applied in Metro Vancouver.

Speculation Tax – This new, annual property tax will apply to foreign and domestic homeowners who do not pay income tax in B.C., including those who leave their properties vacant. The new tax will initially apply to homes in Metro Vancouver, the Fraser Valley and capital regional districts in Victoria and Nanaimo, Kelowna and West Kelowna. In 2018, the tax rate will be 0.5 per cent of assessed value. In 2019, it will rise to 2.0 per cent of assessed value.

 

 

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