Can Non-Canadians buy property in Tofino & Ucluelet?

As an American interested in purchasing real estate in Tofino, British Columbia, it's essential to understand both federal and provincial regulations affecting foreign buyers.​

Federal Foreign Buyers Ban

Effective January 1, 2023, the Government of Canada implemented the Prohibition on the Purchase of Residential Property by Non-Canadians Act, commonly known as the Foreign Buyer Ban. This legislation prohibits non-Canadians, including U.S. citizens, from purchasing residential properties in certain areas of Canada. The ban was initially set for two years but has been extended to January 1, 2027. ​bcrea.bc.ca+4dlegal.ca+4BC Real Estate Lawyers+4BC Real Estate Lawyers+3bcrea.bc.ca+3dlegal.ca+3

The ban applies to properties located within Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs). These are regions defined by Statistics Canada based on population size and density. Tofino is part of the Alberni-Clayoquot Regional District, which does not fall within a CMA or CA. Therefore, the federal Foreign Buyer Ban does not apply to properties in Tofino, allowing non-Canadians to purchase residential real estate there.​BC Real Estate Lawyers+3dlegal.ca+3bcrea.bc.ca+3bcrea.bc.ca

Provincial Foreign Buyer Tax

British Columbia imposes an Additional Property Transfer Tax, commonly referred to as the Foreign Buyer Tax, on foreign nationals, foreign corporations, and taxable trustees acquiring residential property in specific areas. The tax rate is 20% of the property's fair market value and applies to properties within the following regions:​BC Real Estate Lawyers+2www2.gov.bc.ca+2tjworkplacelaw.com+2

• Capital Regional District​Talk Tofino+2www2.gov.bc.ca+2BC Real Estate Lawyers+2
• Fraser Valley Regional District​www2.gov.bc.ca+1BC Real Estate Lawyers+1
• Metro Vancouver Regional District​www2.gov.bc.ca
• Regional District of Central Okanagan​www2.gov.bc.ca+1BC Real Estate Lawyers+1
• Regional District of Nanaimo​bcrea.bc.ca+3BC Real Estate Lawyers+3www2.gov.bc.ca+3

Tofino is located in the Alberni-Clayoquot Regional District, which is not among the specified areas subject to the Additional Property Transfer Tax. Consequently, as an American purchasing property in Tofino, you would not be subject to this 20% tax. ​www2.gov.bc.ca

Other Considerations

While Tofino is exempt from both the federal Foreign Buyer Ban and the provincial Foreign Buyer Tax, it's important to be aware of other potential taxes and regulations:

• Property Transfer Tax (PTT): This is a standard tax applicable to all property purchases in British Columbia, regardless of the buyer's nationality. The PTT rates are:​tjworkplacelaw.com

  • 1% on the first $200,000 of the property's fair market value​tjworkplacelaw.com+1www2.gov.bc.ca+1
  • 2% on the portion between $200,000 and $2,000,000​
  • 3% on the portion above $2,000,000​
  • An additional 2% on the portion above $3,000,000 for residential properties​

• Speculation and Vacancy Tax: This annual tax applies to certain areas in British Columbia to discourage housing speculation and ensure that residential properties are used effectively. However, the Alberni-Clayoquot Regional District, where Tofino is located, is not subject to this tax.​

It's advisable to consult with a local real estate professional or legal advisor to fully understand all applicable taxes and regulations when purchasing property in Tofino.