Summary of Government Regulations & Dates

Government Regulations & Dates City of Vancouver Empty Homes Tax:

• The City of Vancouver Empty Homes Tax is 3% for any homes deemed empty in 2023.

• Declaration Due Date is February 2.

• All homeowners must complete a declaration and confirm exemptions, if applicable.

• Clauses required in CPS to protect the buyer.

• More information: City of Vancouver Empty Homes Tax

B.C. Speculation and Vacancy Tax:

• The BC Speculation and Vacancy Tax is 0.5% for Canadian Citizens or Permanent Residents and 2% for foreign owners and satellite families.

• Declaration Due Date is March 31.

• All owners on title must complete a declaration, even if they are spouses.

• Areas covered include the Capital Regional District (Victoria and surrounding areas), Metro Vancouver Regional District (including Lions Bay and Squamish), Langley, Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo, and Lantzville (use the link to confirm areas).

• No clauses needed in CPS to protect the buyer.

• More information: B.C. Speculation and Vacancy Tax

Canadian Underused Housing Tax:

• Starting in 2023 for the 2022 tax year, there is an annual 1% tax on the taxable value of a vacant or underused residential property that is directly or indirectly owned by a non-resident non-Canadian.

• CRA filing is required by April 30th.

• Excluded Owners (Canadian Citizens and permanent residents of Canada) do not have to file, but some exceptions may trigger a requirement to file.

• This tax applies to all of Canada.

• No clauses needed in CPS to protect the buyer.

• More information: Canadian Underused Housing Tax

B.C. 3-Day Home Buyer Rescission Period:

• Effective January 3, 2023.

• Affects residential properties other than leasehold, auction, court order, presale.

• Provides a buyer with a 3-day rescission period starting the day after acceptance, excluding Saturdays, Sundays, and holidays.

• If a buyer rescinds, they are required to pay the seller a 0.25% penalty, which can be paid from any deposits held in the brokerage trust account or pursued by the seller if no deposits were given.

• The rescission period cannot be waived.

• The Contract of Purchase and Sale must contain the exact rescission amount based on the purchase price, the contact for sending rescission notice, the final acceptance date, and the last date rescission can happen.

• Rescission can be done using the required form by registered mail, fax, or email with a read receipt.

• More information: B.C. 3-Day Home Buyer Rescission Period

B.C. Foreign Buyer Tax:

• The tax is 20% for foreign nationals, foreign corporations, or taxable trustees.

• Applies to the Capital Regional District (Victoria, Saanich, and surrounding areas, Gulf Islands), Fraser Valley Regional District (through to Hope), Metro Vancouver (to Lions Bay), Central Okanagan, and District of Nanaimo.

• Contact the provincial government for clarification at 1-888-841-0090 or attenq@gov.bc.ca

Canada 2-Year Foreign Buyer Ban:

• Starting January 1, 2023, non-Canadian citizens and non-permanent residents are prohibited from purchasing residential property in Canada for two years, whether directly or indirectly (meaning buyers not on the contract but acting as a beneficial owner are also prohibited).

• Agreements signed before January 1, 2023, are not subject to the prohibition.

• The ban applies to properties in either a "census agglomeration" or a "census metropolitan area," with certain exemptions such as Whistler. You can refer to the following link for more information: link

• The prohibition applies to residential properties and buildings with up to three dwelling units (multi-family rental buildings). Vacant land is exempt as of March 27, 2023.

• The ban applies to individuals and corporations with a non-Canadian ownership interest of 3% or more.

• Some exemptions may apply, and it is advisable to consult the legislation and seek legal advice to determine if they are applicable.

• Violation of the Act can result in a $10,000 penalty for all parties involved, including the buyer, seller, lawyer/notary, real estate agent and brokerages, lenders, etc. Additionally, a court order may be issued to sell the property, with any profit going to the government.

• A property may be exempt from the Foreign Buyer Ban but could still be subject to the Foreign Buyer Tax.

• Buyers should sign the Certificate and Consent of Purchaser form to confirm their eligibility to purchase.

• The Canada Mortgage and Housing Corporation (CMHC) provides comprehensive information on the ban, including a feature to look up an address and determine if it is exempt. You can find more information at the following link: link

Anti-Flipping Rule:

• The anti-flipping rule is applicable nationwide and is based on Canada Revenue Agency (CRA) filing requirements.

• Any individual who sells a property within a period of less than 12 months would be considered to be flipping the property and subject to full taxation on their profits as business income.

• Some exemptions exist, and it is advisable to seek advice from an accountant to understand the specific details and implications.

• Assignments are currently exempt – that could change.