Foreign Real Estate Buyers in Vancouver Facing New Tax

vancouver

 

It’s no secret that many wealthy individuals own multiple homes, including vacation homes in foreign countries. In an effort to capitalize on this popular trend amongst the wealthy, many countries and/or cities have created new taxes aimed specifically at wealthy real estate buyers from foreign countries. Among the latest locations to enact a new tax on wealth property buyers is Vancouver, BC in Canada.

According to recent reports, the housing market has seen a huge shopping spree lately in the area as many wealthy foreign buyers, especially from China, have been snatching up homes at a fast pace. In fact, foreign buyers spent more than a billion dollars on homes and property in British Columbia between June 10 and July 14 of this year alone. With the increasing demand for property in BC, housing prices have soared almost 30 percent in the last year, which has left many local buyers unable to compete for these homes.

Therefore, in an effort to keep things fair, the British Columbian government has issued a new 15 percent tax, which will apply, to all “foreign nationals or foreign-controlled corporations” purchasing property in the metropolitan Vancouver area. BC is not the first place to issue such a tax. Australia and Singapore both recently raised the tax on foreign real estate buyers as well. The BC government said that anyone who attempts to avoid the new tax could face fines in the six figures and up to two years behind bars.

http://www.cnbc.com/2016/07/26/wealthy-overseas-buyers-to-face-new-real-estate-tax-in-vancouver.html

Posted in
Five Tips for Recently Married or Divorced Taxpayers with a Name Change

Saving Money for College: Education Credits

Saving Money for College: Education Credits Education credits are tax credits available for qualified education expenses paid by the taxpayer in the furthering of their education. Qualified education expenses are defined as an expense paid during the tax year for tuition and fees required by an eligible educational institution for student enrollment and attendance. Room…

Thinking About Giving up Your U.S. Citizenship? Think Twice

Thinking About Giving up Your U.S. Citizenship? Think Twice

Thinking About Giving up Your U.S. Citizenship? Think Twice While not a lot of people ever entertain the thought of giving up their U.S. citizenship, there are more people every year that are making that choice. Among them are several wealthier people whose main reason for renouncing is to escape the country’s overloaded tax system;…

Health Care For Senior Citizens – Understanding Medicare!

Health Care For Senior Citizens – Understanding Medicare!

Health Care For Senior Citizens – Understanding Medicare! By Dennis Wolfe In America having health care cost protection (also known as medical insurance) is not a right. Neither is it a right to access health care services. Health care services in strict economic definitions are simply services for which we consumers pay fees. As consumers…

Rate Yourself Using Debt-to-income Ratio

Rate Yourself Using Debt-to-income Ratio

Rate Yourself Using Debt-to-income Ratio By Linda Stern WASHINGTON (Reuters) – If you were a company, what would the analysts be saying about you?   Most investors use financial ratios to grade the companies the average debt to income ratio by age buy and sell, but they rarely subject their own finances to the same…