Today the provincial government announced a new tax for foreign buyers and our fantastic partner, Tony from Spagnuolo & Co. Lawyers confirmed what they know so far about the new tax:

1. A foreign national is one who is not a Canadian citizen or permanent resident. If it is company that is purchasing, a foreign company is one that is not incorporated in Canada, or incorporated in Canada but controlled in whole or in part by a foreign national or other foreign corporation;

2. The increased tax only applies to properties in the Greater Vancouver Regional District, and does not apply elsewhere in the Province, or the Tsawwassen First Nations Lands;

3. The tax only applies to residential properties, not commercial;

4. This is in addition to the regular Property Transfer Tax to be paid, and is paid on closing;

5. The increased tax is effective August 2, 2016, regardless of when the contract is signed. Even if the contract was signed weeks ago, if it completes after August 2, 2016 there is a higher tax;

6. We need to confirm the clients SIN number and compare it to an official government document, such as a passport or SIN card. Prepare your clients to have such ID;

7. The additional tax is payable even if there would normally be an exemption available. Transfers between related individuals, transmission to surviving joint tenant and other such items now attract the additional tax.

Once we receive further details we will do our best to keep you posted.