Should foreign buyers pay more tax on canadian property?

The British Columbia Chamber of Commerce is calling for a tax hike for foreign buyers.

Buyers in the region of Canada currently pay 1 per cent Property Transfer Tax on the first $200,000 of a property's sale, then 2 per cent on the rest of the value. Now, though, the Chamber of Commerce is arguing that buyers should have to 2 per cent tax on the full price, a move that some experts say will hinder investment.

Nicola Way, owner of www.BestHomesBC.com website, tells OPP Connect she can’t see it happening, "due to the potential risk of deterring investment".

"Alberta and Saskatchewan do not have a PTT, so in theory overseas investors could turn their attention to these provinces, which, of course, the BC government would want to prevent," she comments.

“The tax certainly does need to be addressed in some form, however; as it’s woefully out-of-date and relates to house prices as they were in the late 1980s when the tax was introduced.”