Foreign Buyer Taxes in British Columbia: What Newcomers Should Know
As a newcomer exploring B.C.’s housing market, you’ve already noticed how expensive buying a home in the province can be.
And that’s before factoring in the dual taxes you might have to pay as a foreign national: an additional property transfer tax (PTT) worth up to 20% of a home’s fair market value, and a speculation and vacancy tax (SVT) equal to 2% of a home’s assessed value.
Because these taxes can add hundreds of thousands of dollars to the cost of a home, it’s important to understand how they work — and whether you might be exempt from paying them.
Looking for information about Ontario's foreign buyer tax?
B.C. isn't the only province where newcomers might pay more for a home. Find out what you might have to pay if you're planning on buying in Ontario.Non-resident property transfer tax
Where is the additional PTT charged?
One of the most important details to understand about the PTT is that it doesn’t apply in every region of the province. It is only charged on residential purchases that take place in:
The Capital Region: The area around Victoria, stretching from Sooke to Saanich and including many of the nearby islands.
The Fraser Valley: The region to the east of Vancouver, which includes Abbotsford, Chilliwack and Mission.
Metro Vancouver: Extends to communities like Surrey, Maple Ridge, Langley and Coquitlam.
Central Okanagan: Kelowna and surrounding areas.
Nanaimo: A section of the east coast of Vancouver Island that includes Nanaimo, Parksville and several small communities.
Who pays?
Though some exemptions exist, you’ll most likely pay the extra PTT if the home you’re buying is in a taxable area and you:
Are a foreign national. A person who is neither a Canadian citizen nor a permanent resident of Canada.
Represent a foreign corporation. A corporation is considered foreign if it is not incorporated in Canada, or if it is incorporated in Canada but is controlled by foreign entities.
Are a taxable trustee. A foreign national or foreign corporation holding title in trust for beneficiaries. Canadian citizens and permanent residents can also be taxable trustees if the beneficiary of the trust is a foreign national or corporation.
How much is it?
The non-resident PTT is 20% of a home’s fair market value. If you purchase a property for $1 million and are subject to the tax, you’ll owe the province $200,000. That’s in addition to the PTT everyone in the province pays.
If you buy a home with someone exempt from the PTT, like a Canadian citizen, you’re only required to pay tax on the portion of the home that belongs to you.
For example, if you and a co-buyer each own a 50% stake in a $1 million property, you’ll be responsible for paying 20% of $500,000, or $100,000.
If you’re buying farm land that includes a dwelling, you’ll be taxed on the market value of the home and 0.5 hectares of land. If you’re buying a mixed-use property that includes both residential and commercial space, you’ll be taxed based on the value of the residential portion.
Exemptions and refunds
There aren’t many instances where you’ll be exempt from paying the non-resident PTT.
Exemptions are typically reserved for workers who come to the province as provincial nominees, or for foreign nationals buying property on behalf of a Canadian limited partnership.
You might also be exempt if you fall into a category, like first-time or pre-construction home buyers, that aren’t charged property transfer taxes under normal circumstances.
You may qualify for a refund if you become a permanent resident or Canadian citizen within a year of registering your property with B.C.’s Land Title Office. Getting a refund also requires:
Using the home as your principal residence and living in it for at least one full year.
Moving into the home within 92 days of registering the property.
Not receiving a B.C. Provincial Nominee exemption.
You might also qualify for a refund if the tax was paid in error.
If you plan to apply for a refund, you’ll have to adhere to a specific timeframe. You can apply for a refund after living in the home for 12 months, but the application has to be submitted before 18 months have passed since the home was registered.
Non-resident speculation and vacancy tax
If your home is not your principal residence or a rental property that’s occupied at least six months of the year, you’ll be charged a speculation and vacancy tax (SVT). You’re expected to fill out a declaration that defines how you use your home by March 31 each year.
The SVT applies differently to foreign owners than it does to Canadian citizens. Citizens pay a tax rate of 0.5% of a home’s assessed value. For foreign owners, the rate is 2%. In 2026, it will increase to 3%.
The SVT primarily affects most of the province, except for:
Indigenous lands.
Islands that are only accessible by air or water, except for Vancouver Island.
The Predator Ridge Resort, which is located in Vernon.
Exemptions
There are many scenarios in which the SVT won’t be charged.
Some involve how the property is used. For example, if a home is occupied by a tenant, close to a medical treatment facility used by the owner or uninhabitable, it is exempt.
Other exemptions relate to a home’s physical attributes and how it was acquired; another set of exemptions involve life events like divorce, bankruptcy and death.
The B.C. government provides a detailed list of exemptions here.
B.C.’s taxes and Canada’s foreign buyer ban
Canada’s foreign buyer ban is a federal law that prevents non-citizens and non-permanent residents from buying any residential property in Canada. It’s scheduled to remain in place until January 1, 2027.
You may be wondering, if there’s a foreign buyer ban in place for all of Canada, how can I buy a home in B.C.?
That’s because the ban contains exemptions that allow some foreign nationals to still buy property in Canada. This includes people who:
Hold a work permit.
Are enrolled at certain learning institutions.
Have protected person status.
Have a diplomatic or consular passport.
If those exemptions apply to you, you should be able to buy a home in B.C.
But being exempt from the foreign buyer ban doesn’t mean you’ll also avoid B.C.’s non-resident taxes. The only way you can evade those is to meet each one’s exemption criteria.
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Clay Jarvis
Kurt Woock