Foreign Home-Buyer Tax in BC: What You Need to Know as of Dec. 2025

If you’re a non-Canadian buyer looking at real estate in British Columbia – or a Canadian buying with a foreign spouse, family member, or business partner – you’ve probably heard about the “foreign buyers’ tax.”



In BC, this is officially called the Additional Property Transfer Tax (APT), and it’s charged on top of the regular Property Transfer Tax when a “foreign entity” buys residential property in certain parts of the province. It’s a big number (currently 20% of the purchase price on the foreign share), so it can make or break a buying decision.

Below is a plain-language overview of how we got here, how the tax works in 2025, and what buyers, sellers, and advisors should watch for.

1. Timeline: How the BC Foreign Buyer Tax Evolved

To understand today’s rules, it helps to see the progression over time.

2016 – Tax is Introduced (15%)

• In August 2016, BC introduced an additional 15% tax on the fair market value of residential property purchased by foreign buyers in the Metro Vancouver Regional District.
• The goal was to cool an overheated housing market by discouraging speculative and non-resident buying.

2018–2019 – Tax Increased and Areas Expanded

Over the next few years, BC made two big changes:

1. Rate increase – The tax was raised to 20% of the foreign buyer’s share of the property’s fair market value.
2. Geographic expansion – The tax expanded beyond Metro Vancouver to include specified areas in:

• Fraser Valley Regional District
• Capital Regional District (Greater Victoria)
• Central Okanagan (Kelowna area)
• Regional District of Nanaimo

If you buy a residential property in one of these regions and at least one transferee is a foreign entity or taxable trustee, the additional 20% now comes into play on that share.

2020–2024 – Fine-Tuning & Interaction with Federal Rules

• BC continued to tweak definitions (e.g., how “taxable trustees” and “beneficial ownership” are treated).
• Meanwhile, the federal government introduced its own rules: the Prohibition on the Purchase of Residential Property by Non-Canadians Act (often called the “foreign buyer ban”) effective Jan. 1, 2023 to Jan. 2, 2027, which temporarily restricts certain non-Canadians from buying residential property in many urban areas across Canada. 
• It’s important to understand the BC foreign buyer tax is separate from the federal ban:
• The federal ban can stop a purchase from happening in some situations.
• The BC foreign buyer tax applies when a purchase goes ahead and is taxable under BC law.

2025 – Case Law & Clarifications

By 2025, court decisions have provided more guidance on how the tax applies, especially in complex situations involving trusts and beneficial ownership.

• Courts have held that where a taxable trustee holds property for a foreign beneficiary, the tax can apply based on the full fair market value, not just a small “paper” share.
• This matters if buyers are thinking of “creative” ownership structures – they may end up triggering more tax than expected.

For clients (and for professionals like lawyers, brokers, and accountants), the message in 2025 is clear: how you structure ownership really matters.

2. How the Foreign Buyer Tax Works Today (Dec. 2025)

Where It Applies

The Additional Property Transfer Tax currently applies to residential property in these BC regions:

The 20% Additional Property Transfer Tax applies to residential property located in the following Regional Districts:

1. Metro Vancouver Regional District

• Includes: Vancouver, Burnaby, Richmond, Surrey, Coquitlam, New Westminster, North & West Vancouver, Delta, Langley (City & Township), Maple Ridge, Port Moody, etc.

1. Fraser Valley Regional District

• Includes: Abbotsford, Chilliwack, Mission, Hope, Kent (Agassiz), Harrison Hot Springs, rural Fraser Valley areas

1. Capital Regional District (CRD) – Greater Victoria Area

• Includes: Victoria, Saanich, Langford, Colwood, Oak Bay, Esquimalt, Sidney, View Royal, etc.

1. Regional District of Central Okanagan

• Includes: Kelowna, West Kelowna, Lake Country, Peachland

1. Regional District of Nanaimo

• Includes: Nanaimo, Parksville, Qualicum Beach, Lantzville

If the property is outside these areas, the foreign buyer tax does not apply (though the regular Property Transfer Tax still does).

Who Is Considered a “Foreign Entity”?

Generally, the tax targets:

• Foreign nationals – individuals who are not Canadian citizens or permanent residents.
• Foreign corporations – corporations that are not controlled by Canadian citizens/PRs.
• Taxable trustees – trustees holding property where a foreign beneficiary has an interest.

If any of the transferees fall into one of these categories, their share of the purchase price may be hit with the additional tax.

How Much Is the Tax?

The Additional Property Transfer Tax is:

20% of the fair market value of the foreign buyer’s share of the property.

This is on top of:

• The standard BC Property Transfer Tax (PTT), which is:
• 1% on the first $200,000
• 2% on the portion from $200,000 to $2,000,000
• 3% on the portion over $2,000,000 (for residential property),
• plus an additional 2% on the portion over $3,000,000 for high-value properties.

So, a foreign buyer in a covered region pays regular PTT + 20% foreign buyer tax on their share.

3. Co-Ownership: Mixed Canadian & Foreign Buyers

Things get especially interesting when a foreign buyer is purchasing with a Canadian citizen or permanent resident (e.g., a couple, parent/child, or business partners).

• The additional 20% is calculated on the foreign buyer’s percentage of ownership, not the Canadian’s.
• Example:
• Purchase price: $1,000,000
• Two buyers: one Canadian citizen (50%); one foreign national (50%)
• Foreign buyer tax applies to 50% of the value → $500,000 × 20% = $100,000 in additional tax.

If a trust, partnership, or corporation is involved, more complex rules decide whether the entire property value is considered exposed to the tax. This along with all cases is where legal advice becomes essential.

4. Key Exemptions & Special Cases

There are some situations where a foreign entity may not have to pay the additional tax, including:

• BC Provincial Nominee Program (BCPNP):
• A foreign national who is a confirmed BC Provincial Nominee and meets certain conditions (such as using the property as their principal residence) may qualify for an exemption.
• Certain Canadian-controlled limited partnerships and other structures that meet specific criteria.

However:

• These exemptions are technical and conditions are strict.
• They generally must be claimed at the time of registration (or within any allowed correction period).
• If a buyer doesn’t meet the conditions, the full 20% applies.

Final Word

The BC foreign home-buyer tax is no small detail – at 20% of the foreign buyer’s share of a property’s value, it can add hundreds of thousands of dollars to the cost of buying a home. Understanding when it applies, who it applies to, and how it interacts with federal rules is essential for anyone working with international buyers or mixed-status couples and families.

Because of the complexity, foreign buyers should always coordinate with a real-estate lawyer and tax professional when considering buying a home in BC. Make sure this tax is front and centre in your planning – not a surprise discovered on closing day!

Kelly Hudson

Mortgage Expert

Cell: 604-312-5009

Kelly@KellyHudsonMortgages.com