BC Foreign Buyer Tax: What Non-Residents Need to Know

BC Foreign Buyer Tax Guide

BC imposes an Additional Property Transfer Tax (APTT) on foreign nationals purchasing residential property in designated areas.

Foreign Buyer Tax Rate

Current Rate: 20%

Applied on top of regular Property Transfer Tax in designated areas:

• Metro Vancouver
• Fraser Valley
• Capital Regional District (Victoria)
• Nanaimo Regional District
• Central Okanagan

Tax Calculation Example

$1,000,000 property purchased by foreign national:

Regular PTT:

• 1% on $200,000 = $2,000
• 2% on $800,000 = $16,000
• Regular PTT total: $18,000

Additional PTT:

• 20% × $1,000,000 = $200,000

Total tax: $218,000

Who Is Affected

Taxable Purchasers:

• Foreign nationals (non-citizens, non-PRs)
• Foreign corporations
• Taxable trustees

Exemptions May Apply:

• Provincial nominees
• Work permit holders (conditions apply)
• Refugees
• Spouse of Canadian citizen/PR

Exemption for Work Permit Holders

May qualify if:

• Valid work permit
• Working full-time in BC
• Filed BC income tax returns
• Living in the purchased property

Speculation and Vacancy Tax

Separate from foreign buyer tax:

• Annual tax on vacant or underused properties
• Applies to foreign owners and satellite families
• Different rates for different categories
• Declaration required annually

Strategies for Foreign Buyers

Path to Exemption:

• Become permanent resident before purchasing
• Obtain provincial nominee status
• Secure qualifying work permit

Alternative Approaches:

• Purchase in non-designated areas
• Wait for immigration status change
• Consider rental while waiting

Mortgage Considerations

Foreign National Mortgages:

• Limited lender options
• Higher down payment required (often 35%+)
• Higher interest rates
• Additional documentation

Conclusion

BC's foreign buyer tax significantly increases costs for non-residents in major centers. Planning immigration status can avoid or refund this tax.