Major Real Estate Changes You Should Know About In 2023

Here are some critical changes in the real estate market that came into effect as of January 1 2023.

Anti-flipping tax

  • Selling a property within 12 months of buying it will be considered “flipping” and profits will be taxed as business income.

  • Ineligible for the principal residence exemption or the 50% capital gains rate.

  • There are exemptions for “life events” such as a divorce or death.

Buyer Rescission Period

  • Buyers can walk away from a purchase within three 3 business days after an offer is accepted.

  • Buyer will have to pay the seller 0.25% of the purchase price. ( $2500 for every $1,000,000.)

Canada-wide ban on No Foreign Buyer purchases for 2 years

  • Only Canadian citizens or permanent residents will be allowed to purchase property in Canada for 2 years

  • Temporary residents, work permits, non-residents who are married to residents/Canadians, diplomats and refugees are exempt from this ban

  • Exemptions for buildings with more than 3 units, recreational property, foreclosures, and inheritances.

Speculation & Vacancy Tax expansion in BC

  • Now that rentals must be allowed in buildings, units that aren’t rented will be subject to the speculation/vacancy tax of 0.5% of the value and 2% for foreign owners per year, plus in Vancouver, 3% empty home tax annually.

  • Pressure to have units rented out if vacant for more than 6 months of the year

  • Expanded to more areas such as Squamish, Lions Bay, Ladysmith

If you have any questions about recent changes to the real estate market, contact us!


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