New Welcome to Vancouver 15% Tax on Foreign Real Estate Buyers

There is much controversy around the new tax on real estate purchased by foreign buyers in Metro Vancouver. There is widespread public support based on the notion that it will make real estate more accessible and affordable to middle class Vancouver residents. There is also much skepticism over the reality of it actually having any positive impact in that regard.

The implementation and imposition of the tax on existing sales agreements that had not yet completed has reportedly directly compromised more than 400 transactions where the purchasers are finding themselves now short of funds and unable to close. This in turn leads to a domino effect of those home sellers having already committed to new purchases also being unable to complete. We will most certainly see people walking away from their deposits and being sued for losses sustained.

Why we would impose a penalty on people legitimately moving their families to B.C. to fill much needed skilled service positions such as Pediatricians, Cancer Researchers and Senior Executives. We want these people to come, support and build our economy why are we penalizing them?

Prominent lawyers are talking about legal challenges to the new tax as violating NAFTA and many other tax treaties in addition to violating our own Canadian Charter of Human Rights. It was just a year or so ago that our government formally apologized to Chinese Canadians for the massive acts of discrimination of 100 years ago here in British Columbia.

As Canadians we believe in equality, freedom and fairness. This tax compromises the very nature of us as Canadians, it’s simply un-Canadian. Nationally and Provincially we promote international trade, seeking both immigrants and investment from the global market, promoting that Canada and BC are “open for business”. We do that because it’s good for our economy! This tax will at the very least act as a deterrent.

While I absolutely agree with measures probably being warranted to tax the increasing number of vacant properties especially with the extreme low vacancy rates, I cannot support this unfair tax on foreign investors especially with its retroactive introduction. At a minimum there should be exemptions for those who entered into agreements prior to the introduction and also those who are legally living and working here who are waiting for the immigration process.

What do you think?