[Ottawa 12th Reuters]-Canada's Prime Minister Trudeau on Tuesday announced a policy of taxing 1% on non-resident foreigners over ownership of domestic real estate. The purpose is to prevent housing prices from rising due to speculative investment by foreigners.
In view of the general election on October 21st, it was announced as a ruling party pledge. Introduced on a nationwide scale and not applicable to Canadians abroad.
In Canada, an election campaign has begun on the 11th, and legislators are making full-scale campaigns. The rising cost of living is expected to become a major issue.
The new tax is modeled on a speculation tax in British Columbia that imposes 2% of the valuation on housing for foreign owners in order to curb housing price hikes.
The Prime Minister said, “British Columbia found that even a small amount of tax has a significant effect on housing speculation by foreigners. I feel it is important to take action at the national level.”