Real Estate

Consultation: Tax on unproductive use of housing by non-resident, non-Canadian owners

  • Last Updated:
  • Aug 6th, 2021 9:20 pm
[OP]
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Jan 16, 2011
7173 posts
9144 upvotes
The NORTH

Consultation: Tax on unproductive use of housing by non-resident, non-Canadian owners

Consulation : Canada.ca
Join in: Open until September 17, 2021

Across the country, young Canadians who are starting to build their future are running up against sky-high housing prices. To ensure that Canada's housing market is a place to grow for Canadians starting their families and building their future, the government is taking action on several fronts, including proposing a tax on underused housing to support investments in housing affordability.

Budget 2021 announced the government's intention to implement a national, annual one per cent tax on the value of non-resident, non-Canadian owned residential real estate that is considered to be vacant or underused, effective January 1, 2022. This will ensure that foreign, non-resident owners, who simply use Canada to passively store their wealth in housing, pay their fair share.
Seeing as how there is an election incoming this will amount to NOTHING as it will die when parliament is dissolved.

Gotta love Canada, lets talk and consult and talk some more but do nothing...
3 replies
Member
Jul 26, 2015
360 posts
428 upvotes
Vancouver, BC
BC has a 2% speculation tax for foreigners, even if the property is owner occupied (with the exception of some smaller towns), this is a provincial tax.
Vancouver has a 3% vacancy tax, this one is on municipal level.

If you are a foreigner and you own a property in Vancouver, you need to pay 5% in additional taxes every year based on assessment value, unless you rent the property out. So foreigners can easily buy a property in Vancouver (after paying additional 20% property transfer tax upon completion), but they can not use the property, they need to pass that enjoyment to someone else (an arm-length tenant), or choose to pay 5% of adjusted property value every year.

I guess the federal government wants a piece of this honey pot. Just a matter of time.
Foreign owners have no easy way of defending their rights. And if they do, most would simply not bother. Besides that local public is likely to support the idea.
Just easy money for the government.
Member
Jul 26, 2015
360 posts
428 upvotes
Vancouver, BC
On a side note, taxes on foreigners didn’t help lower the property prices in Vancouver, just created a 2-year dip. Breaking record levels again now.
Deal Addict
Dec 5, 2009
1756 posts
2057 upvotes
This is equivalent to throwing a dog a bone. Foreign buyers simply buy through friends/family here.

I honestly find it hard to believe that people still believe that the government or central bank will crash or correct the market on purpose.

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