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Did you know?Summary of RecentGovernment RegulationsImpacting Real Estate in BC(Jan. 2023) Contact: Jim Korchinski778 839 5808Seek independent legal or otherprofessional advice, if unsurewhether the following applies to you
Starting in 2023, the City of Vancouver Empty HomesTax will be 5% for any homes deemed empty in 2023 Declaration Due Date is February 2, 2023All homeowners must complete a declaration andconfirm exemptions, if applicablevancouver.ca/home-property-development/empty-homes-tax.aspxCity of Vancouver Empty Homes Tax (up from 3% in 2022)Seek independent legal or other professional advice,if unsure whether the above applies to you
The BC Speculation and Vacancy Tax is 0.5% forCanadian Citizens or Permanent Residents and 2% forforeign owners and satellite familiesDeclaration Due Date is March 31,2023All owners on title must complete a declaration, even ifthey are spousesAreas covered – Capital Regional District (Victoria andsurrounding areas), Metro Vancouver Regional Districtincluding Lions Bay and Squamish and out to Langley,Abbotsford, Mission, Chilliwack, Kelowna, WestKelowna, Nanaimo, Lantzville (use link to confirm areas)www2.gov.bc.ca/gov/content/taxes/speculation-vacancy-taxB.C. Speculation and Vacancy Tax Seek independent legal or other professional advice,if unsure whether the above applies to you
Starting in 2023 for the 2022 tax year, an annual 1% taxon the taxable value of a vacant or underusedresidential property that is directly or indirectly ownedby a non-resident non-CanadianCRA filing by April 30thExcluded Owner does not have to file – CanadianCitizens and permanent residents of Canada areExcluded OwnersAll of Canada is covered by this taxwww.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.htmlCanadian Underused Housing Tax Seek independent legal or other professional advice,if unsure whether the above applies to you
Effective January 3, 2023Affects residential properties other than leasehold,auction, court order, pre-saleProvides a buyer with a 3-day rescission period startingthe day after acceptance and doesn’t include Saturday,Sunday or holidays as determined by theInterpretations ActIf a buyer rescinds, they are required to pay the seller a0.25% penalty. Rescission period cannot be waived.www.bcfsa.ca/industry-resources/real-estate-professional-resources/knowledge-base/guidelines/home-buyer-rescission-period-guidelineB.C. 3-Day Home Buyer Rescission Period Seek independent legal or other professional advice,if unsure whether the above applies to you
20% Tax if you are a foreign national, foreigncorporation or taxable trusteeApplies to Capital Regional District (Victoria, Saanichand surrounding areas, Gulf Islands), Fraser ValleyRegional District through to Hope, Metro Vancouver toLions Bay, Central Okanagan, District of NanaimoContact the provincial government for clarification at 1-888-841-0090 or attenq@gov.bc.ca www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/additional-property-transfer-taxB.C. Foreign Buyer TaxSeek independent legal or other professional advice,if unsure whether the above applies to you
Canada wide and based on CRA filingAny person who sells a property they would have heldfor less than 12 months would be considered to beflipping the property and would be subject to fulltaxation on their profits as business.Some exemptions exist, seek advice from anaccountantAssignments are currently exempt – that could changewww.grantthornton.ca/insights/flipping-a-house-your-gain-could-be-fully-taxable-under-proposed-new-rule/Anti-Flipping Rule Seek independent legal or other professional advice,if unsure whether the above applies to you
Starting January 1, 2023, non-Canadian citizens andnon-permanent residents will be prohibited frompurchasing residential property in Canada for twoyears, purchasing either directly or indirectly (meaningbuyers not on the contract, but a beneficial owner isprohibited)Agreements signed before January 1, 2023 will not besubject to the prohibition.Prohibition covers properties in either a “censusagglomeration” or a “census metropolitan area” – forexample Whistler is exempt.www12.statcan.gc.ca/census-recensement/2021/geo/maps-cartes/referencemaps-cartesdereference/sgc-cgt/map-eng.cfm?SGC=01_CCanada 2-Year Foreign Buyer Ban Seek independent legal or other professional advice,if unsure whether the above applies to you
Seek independent legal or other professional advice,if unsure whether the above applies to youAffects residential properties and buildings of up to 3dwelling units (multi-family rental buildings)Includes vacant residential landApplies to individuals and corporations with a non-Canadian with 3% interest or moreSome exemptions may apply, see legislation and legaladvice required to determine, if applicableContravention of the Act can result in $10,000 for allparties involved (buyer, seller, lawyer/notary, realestate agent and brokerages, lenders, etc) and couldresult in an order to sell the property and any profitwould go to the government.canadagazette.gc.ca/rp-pr/p2/2022/2022-12-21/html/sor-dors250-eng.htmlCanada 2-Year Foreign Buyer Ban (Cont'd)