B.C. isn’t the only jurisdiction seeking relief from high home prices blamed on an influx of speculative foreign money.
Hong Kong instituted a 15-per-cent surcharge on non-residents buyinginto the city’s hyperactive residential market back in 2012. The tax,aimed at reducing speculation by wealthy mainland Chinese, is inaddition to document and transfer taxes paid by Hong Kong residentbuyers. Singapore charges a similar tax on foreign buyers.
Sixyears ago, Australia responded to rising prices in Melbourne and Sydneyby implementing a ban on foreign purchases of existing housing unlessthe house is demolished and redeveloped in a way that increases thenumber of housing units. Foreign buyers are mainly restricted to buyingnew housing. Temporary foreign visitors can buy existing homes as longas they are resold before that person leaves Australia.
Denmarkhas a law against foreign ownership to the effect that non-EU nationalscan’t buy a home unless they have lived in Denmark for five years, areemployed there, and the home will be their principal residence. Denmarkcan also restrict non-Danish EU citizens from buying second homes in thecountry.
In Britain, lawmakers in London have made theirproperty transfer tax steeply progressive and added an additionaltransfer tax on purchases made by non-residents. Foreign owners alsoface a higher capital gains tax when they sell.
The Swiss government imposes annual quotas on the number of homes that can be sold to foreign nationals.
The Philippines does not permit foreigners to buy land at all, although they can buy the house or condo that sits on the land.
Mexico technically doesn’t allow foreign buyers in areas anywherewithin 100 kilometres of the border or 50 kilometres from the coasts.The government amended those restrictions to allow foreigners to buyproperties in those areas through trustee arrangements with Mexicanbanks.