Back to blog

Is this a good idea?! No 15% foreign buyers tax for some.

Posted on January 30, 2017

No foreign buyers tax for people with a BC work permit

The Canadian Press has just reported that there will be no foreign buyers tax for people with a BC work permit.

“The 15 per cent foreign buyers tax was implemented last August in a bid to cool skyrocketing real estate prices.” CTV News has reported.

But “British Columbia’s premier has announced her government is amending its tax on foreigners buying property in Metro Vancouver.

“Christy Clark says the levy will be lifted for those who have a work permit and pay taxes in B.C., in order to encourage more people to come to the province.

“Government data released earlier this month shows there was a steep drop in foreign owned real estate transactions in the Vancouver area last summer after the tax was introduced.

“The data shows there were about 1,970 purchases involving foreign buyers in the period ending Aug. 1, compared to 60 in the rest of August and about 200 in November.”

This was all likely done to spur investment in the provincial economy. But given the affordability of homes in the market, does this seem like a good policy adjustment? What do you think?

 

 

foreign buyers tax

A sold home is pictured in Vancouver, B.C., on Feb. 11, 2016. (Jonathan Hayward / The Canadian Press)