The 20% Additional Property Transfer Tax for non-Canadian buyers in Kelowna and the Okanagan — who pays it and how much it adds.
Foreign nationals (non-citizens/non-permanent residents) purchasing residential property in BC's specified regions — including the Okanagan — pay an Additional Property Transfer Tax of 20% on the full purchase price, on top of standard PTT. On a $1,000,000 Kelowna home, the APTT alone is $200,000.
BC's Additional Property Transfer Tax (APTT), commonly called the foreign buyer tax, applies to foreign nationals purchasing residential property in designated areas of BC including the Okanagan. Introduced to moderate housing demand and improve affordability, the APTT significantly increases the cost of buying real estate in the Okanagan for non-Canadian buyers.
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Get KOHO Free — Use Code 45ET55JSYAThe Additional Property Transfer Tax (APTT) is a 20% tax on the fair market value of residential property purchased by foreign nationals. A foreign national is defined as an individual who is not a Canadian citizen, permanent resident, or a foreign national exempted under the regulations (such as nominees under certain immigration programs).
Yes. BC expanded the APTT from Metro Vancouver to include additional regions, including the Okanagan. The Central Okanagan (Kelowna area), North Okanagan (Vernon area), and South Okanagan (Penticton area) are all within the designated regions where APTT applies to foreign nationals purchasing residential properties.
| Purchase Price | Standard PTT | APTT (20%) | Total Tax |
|---|---|---|---|
| $700,000 Kelowna condo | $12,000 | $140,000 | $152,000 |
| $1,000,000 Okanagan home | $18,000 | $200,000 | $218,000 |
| $1,500,000 lakefront home | $28,000 | $300,000 | $328,000 |
| $3,000,000 luxury estate | $68,000 | $600,000 | $668,000 |
The APTT applies to individuals who are foreign nationals — defined as persons who are neither Canadian citizens nor permanent residents of Canada. This includes:
Notably, the APTT does not apply to Canadian citizens living abroad. If you hold Canadian citizenship or permanent residency, you do not pay the APTT regardless of where you currently live.
Some foreign nationals may be exempt from the APTT, including: nominees under BC's Provincial Nominee Program who have received their nomination certificate, people with diplomatic or consular status, and in some cases, purchases by a foreign national who is the spouse of a Canadian citizen or permanent resident (if they purchase jointly as principal residence).
The rules around APTT exemptions are complex and subject to change. A BC notary or real estate lawyer experienced with international buyers should be consulted before proceeding with a purchase.
In addition to BC's provincial APTT, Canada's federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (colloquially called the foreign buyer ban) imposed additional restrictions. While this legislation has been subject to review and amendments, foreign buyers should confirm the current federal rules with a lawyer before purchasing Okanagan real estate.
Yes. Kelowna and the Central Okanagan Regional District are included in BC's Additional Property Transfer Tax designated areas. Foreign nationals purchasing residential property in Kelowna pay 20% APTT on the full purchase price in addition to standard PTT.
No. Canadian citizens are not subject to BC's APTT regardless of where they currently live. Your citizenship status, not your residency, determines APTT liability.
American citizens who are not Canadian citizens or permanent residents are considered foreign nationals and are subject to BC's 20% APTT. However, Canada's Prohibition on the Purchase of Residential Property by Non-Canadians Act may also apply. Consult a Canadian real estate lawyer before proceeding.
Tax laws change frequently. Consult a BC notary or real estate lawyer specializing in international buyers. Not legal advice.