In recent months we have seen a number of new taxes implemented on Vancouver-area property, particularly for non-resident buyers. But these taxes don’t apply to real estate taxes in Point Roberts, which is rapidly gaining the benefits of a Monaco-like “tax haven”; being an easy one-hour drive to the cosmopolitan center but with a significantly lower tax burden for its property owners.
To be specific:
- If you are buying in Greater Vancouver there is a 5% Goods and Services Tax applied, which is a federal tax for new properties. No sales tax applies in Point Roberts.
- There is also a Property Transfer Tax at 1.8% ($9,000) and an Additional Property Transfer Tax at 20% for foreign buyers (e.g. $100,000). Point Roberts only has an 1.78% excise tax, and that’s paid by the seller.
- Vancouver also has an Empty Homes Tax (also known as a Vacancy Tax) at 1% for empty or under-utilized properties. And Vancouver also has a Speculation Tax at 2% for properties not owner-occupied or a qualifying long-term rental property. There are no such taxes in Point Roberts.
- British Columbia’s recently implemented Speculation Tax affects residential properties in a number of population centres, including areas around Vancouver and popular holiday destinations, like Kelowna–making Point Roberts one of the most convenient places to purchase a holiday property without the tax.
All in all, the tax differences can add up to $149,000 difference on a $500,000 property.
The continued and rapid rise in real estate prices in Vancouver have indirectly supported property values in Point Roberts for a long time, and now the tax differentials add a direct boost.
Yet another great reason for Vancouverites, British Columbians, and Canadians in general to look into owning your second home in Point Roberts, Washington.
For Foreign Buyers to Purchase Residential Real Estate
|Goods and Services Tax (GST)||5%||$25,000||Not applicable||$0|
|Property Transfer Tax (PTT)||1.8%||$9,000||Not applicable||$0|
|Additional Property Transfer Tax for Foreign Buyers (20% from Feb 21, 2018)||20%||$100,000||Not applicable||$0|
|Vacancy Tax (Annual)||1%||$5,000||Not applicable||$0|
|Speculation Tax (Annual)||2%||$10,000||Not applicable||$0|