Can You Own Property in Vancouver as a Foreign Investor? Understanding Bill 28 and BC’s Ownership Restrictions

Vancouver and broader British Columbia have some of Canada’s most restrictive rules on foreign homeownership. For many international investors and new immigrants, the prospect of buying real estate here involves understanding federal bans, provincial taxes, and municipal vacancy charges. Key regulations include B.C.’s Bill 28 (2016) measures and recent federal laws. In short: most non-Canadians cannot directly buy homes in Canada until 2027, and those who can must pay hefty taxes. This guide explains the foreign buyer tax BC, Vancouver property ownership restrictions, and related laws in clear terms.

Foreign Buyer Tax and Bill 28 (B.C. 2016)

British Columbia’s Foreign Buyer Tax was first introduced by Bill 28 (the Miscellaneous Statutes (Housing Priority Initiatives) Amendment Act, 2016). This law added new charges on foreign home purchases to curb foreign investment in Vancouver housing and help locals afford homes. Bill 28 made two key changes for non-residents:

Additional Property Transfer Tax: Foreign individuals or entities must pay an extra tax on residential property purchases in Metro Vancouver and surrounding regions. Originally set at 15% of the purchase price, this foreign transfer tax is now 20%. For example, Bill 28 described a $3,000,000 Vancouver home triggering an extra $450,000 tax under 15%. This 20% rate applies on top of the regular BC property transfer tax that all buyers pay.
Enabling Vancouver’s Vacancy Tax: Bill 28 amended the Vancouver Charter so the city could impose a tax on vacant homes. Vancouver later used this to create its “Empty Homes Tax,” which charges owners of unoccupied residences a percentage of assessed value each year.

In effect, Bill 28 made it much more expensive for foreign buyers to own property in Vancouver. The foreign buyer tax BC now adds a 20% surcharge on qualifying home purchases (in certain areas) by non-Canadian buyers.

Additional Property Transfer Tax in BC

Beyond Bill 28’s foreign surcharge, all property transactions in B.C. trigger the BC Property Transfer Tax (PTT). This is a provincial tax that applies to every buyer, resident or not. The general PTT rates (as of 2025) are:

1% on the first $200,000 of the fair market value of a property.
2% on the portion from $200,001 up to $2,000,000.
3% on the portion above $2,000,000 (and 5% on the portion above $3,000,000 for very high-value homes).

Foreign buyers pay these same PTT rates plus the additional foreign buyers tax. In specified regions (Metro Vancouver, Fraser Valley, Capital, Nanaimo, Central Okanagan), that extra tax is now 20% of the home’s value. For instance:

A Canadian citizen buying a $1,500,000 Vancouver condo would pay PTT of $34,000 (1% on first $200k + 2% on next $1.3M).
A non-resident buying the same condo would pay the $34,000 plus an additional 20% × $1,500,000 = $300,000 foreign tax.

If multiple people buy together, only the foreign owners’ share incurs the extra tax (but all buyers are jointly responsible for paying it). There are some exemptions (see below).

Key Point: The BC property transfer tax system now hits foreign buyers twice: the normal PTT (up to 3%) and the foreign buyer tax (20%).

Vancouver’s Vacancy (Empty Homes) Tax

Vancouver city’s Empty Homes Tax (often called the “vacancy tax”) is a separate measure that applies to any owner – foreign or local – if a home sits mostly empty. This tax is meant to encourage owners to rent out unused homes. It began at 1% of assessed value in 2017 and has risen since. For the 2025 tax year, the vacancy tax is 3% of the property’s assessed value for homes deemed empty.

Each year, Vancouver homeowners must declare whether their property is occupied. If an owner declares it empty (or fails to declare), the city charges the 3% tax on the home’s assessed value.
The tax revenue is collected only from properties with no valid exemption; others (e.g. primary residences, rentals) pay nothing.

For foreign investors, the vacancy tax means: if you do acquire a Vancouver home (perhaps via an exemption) and leave it empty, you’ll owe another 3% of its assessed value each year.

Example: A foreign buyer owns a $2,000,000 house that’s empty. They pay a 20% transfer tax (=$400,000) at purchase. If they do not rent it out, Vancouver will bill them 3% of $2,000,000 = $60,000 each year until the house is occupied.

In short, Vancouver’s own vacancy tax (now 3%) is another Vancouver property ownership restriction targeting unused homes.

Provincial Speculation and Vacancy Tax

In addition to Vancouver’s city tax, British Columbia levies a province-wide Speculation and Vacancy Tax (SVT) in designated areas (initially Metro Vancouver, Victoria, Kelowna, and other urban regions). This is an annual tax on residential properties left vacant or owned by non-residents. The SVT rates depend on the owner’s residency status:

Foreign owners and “untaxed worldwide earners” (e.g. satellite families) pay 2% of assessed value for the 2019–2025 tax years. (Beginning in 2026, this will rise to 3%.)
Canadian citizens or permanent residents pay just 0.5% in 2019–2025 (rising to 1% in 2026).
(There are exemptions if the home is rented out long-term, is a principal residence, under construction, etc.)

Thus, a foreign owner of a Vancouver home must declare under the SVT rules. If the house is vacant and no exemption applies, they owe 2% of its assessed value to B.C. each year. By contrast, a Canadian owner would pay only 0.5% (after a $2,000 credit) under the same circumstances. BC reports that most of the SVT revenue (82% in year 6) comes from foreign and non-resident owners.

Federal Ban on Non-Resident Home Purchases

In addition to BC’s rules, a federal law now largely prohibits non-Canadians from buying Canadian homes. The Prohibition on the Purchase of Residential Property by Non-Canadians Act (passed June 2022) took effect January 1, 2023. It forbids individuals who are not Canadian citizens or permanent residents – as well as foreign corporations and trusts – from purchasing residential real estate anywhere in Canada. The ban was intended as a 2-year measure and has been extended to January 1, 2027.

Key points of the federal ban:

Who is banned: All “non-Canadians” – defined as foreign individuals, foreign corporations, and taxable foreign trusts – cannot buy non-recreational residential property.
Penalty: A buyer who violates this ban faces a $10,000 fine for each offence.
Exceptions: The law provides limited exemptions. Notably, temporary residents with qualifying work or study permits may still be eligible to buy a single home under strict conditions.

In effect, as of 2025 most outright foreign buyers are barred from purchasing any home in Vancouver or elsewhere in Canada. This federal ban works alongside provincial rules: even if a foreign national qualifies under a federal exception, they would still owe BC’s foreign buyer tax and meet local regulations.

Who Counts as a “Foreign” or Non-Resident Buyer?

The laws use specific definitions:

A foreign person under BC law generally means someone who is neither a Canadian citizen nor a permanent resident at the time of purchase. It also covers foreign corporations and certain trusts. Permanent residents of Canada are treated the same as citizens for these rules (so PRs pay no foreign tax).
Under the federal ban, a non-Canadian is someone who is not a citizen or permanent resident of Canada. It also includes foreign-domiciled corporations or trusts.

What this means practically:

If you are a newcomer who has become a Canadian citizen or PR, you are not considered foreign. You can buy property without the extra foreign taxes and are not subject to the federal ban.
If you are a temporary resident (visitor, tourist, etc.), you are a foreign national and generally cannot buy a home due to the federal ban.
If you hold a work or study permit, you may qualify for an exception (see next section).

Exceptions for Temporary Residents (Work or Student Visas)

The federal law does allow some temporary residents to buy a home, but only under tight conditions. The idea is to let those planning to settle use housing as well. The main rules (updated March 2023) are:

Work Permit Holders: You can buy one home if you have a valid work permit (or exemption to work), with at least 183 days remaining, and you have not already bought another home. The home must be for you (and your family) as a primary residence.
International Students: A student can buy one home (up to $500,000) if: (a) they filed all required Canadian tax returns for the past 5 years, (b) they were physically in Canada 4 out of those last 5 years, (c) the purchase price is ≤ $500,000, and (d) they haven’t bought another property already.
Refugee Claimants: Specific rules may allow them to buy if they meet similar criteria.
Switching Status: If a foreign national becomes a PR within 4 years after purchase, they can apply to get back their foreign buyer tax (a rebate).

These exceptions are only at the federal level. Even if a work-permit holder qualifies to buy, they still face BC’s foreign buyer tax (unless they later become PR). Provincial taxes and city vacancy charges apply regardless of exemptions from the ban.

Summary of Vancouver/BC Ownership Restrictions

Putting it all together, foreign investors/newcomers should note:

Canadian status matters first: Non-citizens/non-PRs are essentially blocked from buying any home in Vancouver under federal law. Only those with approved exemptions (work-study, refugees) can buy, and then only one home under strict rules.
Extra taxes if you can buy: Any purchase by a non-Canadian triggers a huge tax. In Metro Vancouver and nearby areas, foreigners pay an extra 20% property transfer tax, on top of BC’s normal tax. In addition, if the home is left empty, they owe Vancouver’s Empty Homes Tax (3%) and B.C.’s annual Speculation & Vacancy Tax (2%).
Other costs: Foreign buyers also pay standard fees (GST on new homes, legal fees, etc.), and any mortgage interest is the same as for citizens. However, property tax rates (municipal annual taxes) do not differ by ownership status.
Exemptions and Refunds: Certain immigrants (BC Provincial Nominees) can claim exemptions from the foreign tax. And if a foreign buyer later becomes a PR, they can apply to get their 20% tax back (often within 4 years).

Vancouver Real Estate for Foreign Buyers

In practice, the combination of federal and provincial rules has greatly chilled foreign demand. Before 2016, foreign investment in Vancouver housing was blamed for surging prices. Since then, surveys show most British Columbians support the foreign buyer ban and taxes. Real estate reports indicate foreign inquiries have dropped sharply.

For any foreign buyer still hoping to invest in Vancouver:

Plan within the law: If you have a valid exemption (e.g. you’re a work visa holder with a long permit), you can buy one home, but only as your principal residence.
Budget for extra costs: Add 20% to your purchase price for the transfer tax, and budget for 2–3% of value per year in vacancy/speculation taxes if the property is not rented.
Consider alternatives: If outright ownership is too restricted, some opt for fractional ownership or buy property through a locally controlled partnership (though provincial laws will still apply to any foreign-held share).

BC Housing Laws (2025) and Outlook

British Columbia’s housing laws continue to evolve. As of 2025:

The foreign buyer tax remains 20% for Metro Vancouver and several regional districts.
The Speculation and Vacancy Tax now covers more communities (13 new areas added in 2024) and will increase in rate in 2026.
Vancouver’s Empty Homes Tax is at 3% and may adjust over time.
Federally, the foreign-ownership ban was recently extended to 2027; any change to this national policy will determine if and when foreign buyers can re-enter the Vancouver market.

Overall, the trend is toward making it difficult for non-residents to own Vancouver homes. If you are an international investor or new immigrant, the foreign homeownership rules in British Columbia mean that owning property here is possible only within narrow limits, and always at a premium cost.

Key Facts At a Glance

Foreign Buyer Tax (B.C.): 20% extra land transfer tax on foreign buyers in Metro Vancouver, Fraser Valley, Capital, Nanaimo, Central Okanagan.
BC Speculation & Vacancy Tax: 2% of assessed value annually for foreign owners (2023). Tax jumps to 3% in 2026.
Vancouver Empty Homes Tax: 3% of assessed value on city homes left vacant.
Federal Ban: Non-Canadians (individuals or firms) are prohibited from buying residential property until Jan 2027, with limited exceptions for certain visa holders.
Permanent Residents/Citizens: Can buy without the foreign surcharge, but still pay the regular BC transfer tax and are subject to vacancy rules if applicable.

Conclusion

In summary, owning property in Vancouver as a foreign investor is tightly controlled. Since 2016, B.C. has layered on taxes (via Bill 28 and related laws) to penalize non-resident buyers. At the same time, the federal government has largely barred non-Canadian home purchases. For international investors and immigrants, the effect is clear: only Canadians/PRs can freely own homes, and others pay steep penalties or are simply not allowed to buy. Any planning to enter Vancouver’s market must account for these ownership restrictions and the various taxes (foreign buyer tax, vacancy tax, SVT) that apply to foreign homeownership in B.C.

Need guidance on where to start or how these rules apply to your situation? Reach out to Adam Chahl, Vancouver real estate expert, for advice tailored to your status, goals, and timing. Adam can walk you through your options, exemptions, and real estate opportunities with clarity and experience.

FAQs

1. Can foreign investors buy residential property in Vancouver in 2025?
Only under limited exceptions. Most foreign nationals are prohibited under the federal foreign buyer ban extended to 2027. Some work and student permit holders may qualify.

2. How much is the foreign buyer tax in British Columbia?
Foreign buyers pay an additional 20% property transfer tax on top of standard PTT in specified regions like Metro Vancouver.

3. What is the Vancouver Empty Homes Tax?
It's a 3% annual tax on the assessed value of homes that are not occupied or rented out for most of the year.

4. Can permanent residents of Canada buy property in BC without extra taxes?
Yes. Permanent residents are treated like citizens and are not subject to the foreign buyer tax or federal restrictions.

5. What if a foreign buyer becomes a permanent resident after purchasing?
They may be eligible for a full or partial refund of the 20% foreign buyer tax if they meet the criteria within four years of purchase.