After just over 6 months of implementing the 15% foreign homebuyer tax, premier Christy Clark has announced on January 29, 2017 a new exception to the legislation. The extra 15% will now no longer be applicable to those who have a work permit and pay taxes in B.C.. This act is an attempt to encourage more foreign workers to move into the province.
According to tax revenues records, there were about 15,000 transactions in an approximately seven-week period ending August 1, and the number dropped to about 4,700 for the month of October. While purchases involving foreign buyers in the period ending August 1, compared to 60 in the rest of August and about 200 in November.
The question now raises for those who have paid the 15% foreign homebuyer tax, will the exempted be reimbursed? We will be following any further updates and keep you post! More information on the legistration can be found here. You can also give me a call for details regarding how this will affect your investments.