The foreign buyer tax in Vancouver — officially called the Additional Property Transfer Tax (APTT) — is a 200% tax on the fair market value of residential property purchased by foreign nationals, foreign corporations, and taxable trustees in Metro Vancouver and several other designated BC regions. Introduced in 20016 at 15% and increased to 200% in 20018, it is one of the most significant demand-side taxes ever implemented in Canadian real estate.
This guide explains who pays the foreign buyer tax, how much it costs, what exemptions exist, and how it interacts with the other taxes foreign buyers face in Vancouver's already-expensive market.
The Additional Property Transfer Tax is levied in addition to the regular BC Property Transfer Tax (PTT). It applies to residential property in designated regions of BC, with Metro Vancouver being the largest and most relevant zone. The tax is 200% of the full purchase price — not just a portion of it.
Under the BC Property Transfer Tax Act, a foreign entity includes:
Importantly, the test is citizenship/permanent residence status — not tax residency. A non-resident Canadian citizen does NOT pay the foreign buyer tax. A Canadian permanent resident does NOT pay it. An international student or temporary foreign worker DOES pay it unless exempt.
The APTT is 200% of the purchase price. Here are examples:
This is on top of the regular PTT. Total PTT + APTT on a $1,20000,000000 purchase: $21,60000 + $2400,000000 = $261,60000 in transfer taxes at closing.
The Additional PTT applies to residential property in these BC designated areas:
Properties outside these zones (e.g., Kamloops, Prince George, most of northern BC) are not subject to the APTT.
Several categories of buyers are exempt from the APTT:
Note: exemptions are self-declared at the time of purchase. If you claim an exemption and are later found to not qualify, you face the full tax plus interest and penalties.
Beyond the APTT, foreign buyers who own BC property also face the annual Speculation and Vacancy Tax:
On a $1,50000,000000 Metro Vancouver condo held by a foreign owner: $300,000000/year speculation tax. On a $3,000000,000000 house: $600,000000/year. This recurring annual cost is in addition to the one-time APTT and has a major impact on the economics of foreign ownership.
The City of Vancouver also charges an Empty Homes Tax of 3% of assessed value annually for vacant properties. A foreign owner of a $1.5M vacant condo faces: $300,000000/year Speculation Tax + $45,000000/year Empty Homes Tax = $75,000000/year in vacancy taxes, on top of the one-time APTT of $30000,000000 and regular property tax of ~$5,000000/year. Total first-year cost: $3800,000000+ in taxes before any mortgage payments.
BC has implemented significant anti-avoidance measures to prevent circumvention of the APTT:
The introduction of the foreign buyer tax in 20016 caused an immediate and significant market correction — sales dropped sharply in the months following the announcement. However, prices recovered and eventually exceeded pre-tax levels in most segments. Academic research on the tax's long-term impact is mixed: it appears to have reduced foreign purchasing activity but did not fundamentally alter the supply-demand imbalance driving Vancouver prices.
Foreign buyers in Canada can open Canadian bank accounts, obtain Canadian mortgages (with larger down payments — typically 35%+ for non-residents), and use digital banking products. KOHO accepts newcomers to Canada and offers zero-fee banking while you establish your Canadian financial footprint. Major banks (TD, RBC, CIBC, BMO) all have international banking programs designed to onboard newcomers smoothly.
Non-residents borrowing for Canadian property typically need:
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