Property Transfer Tax
This is a provincial tax when you are buying residential properties upon closing. The cost is a percentage of the property's fair market value. It's calculated at 1% on the 1st $200,000 and 2% on the amount between $200,000 and $2,000,000 and 3% on the amount between $2,000,000 to $3,000,000 and 5% on the remainder.
Foreign Buyers TaxIn addition to the property transfer tax, buyers of foreign national or corporation will pay the additional 20% Property Transfer tax.
First Time Home Buyers Exemption
First time home buyers may be exempted from paying the Property Transfer Tax. To qualify for a full exemption at the time of the property is registered:- the buyer is a Canadian citizen or permanent resident. - the buyer has lived in BC for 12 consecutive months immediately before the date he registers the property or has filed at least 2 income tax returns as a BC resident in the past 6 years. - the buyer has never owned an interest in a principal residence anywhere in the world at any time. - the buyer has never received a first time home buyer's exemption or refund. - the property is priced up to $500,000. There is a proportional exemption for homes between $500,000 to $525,000. - the buyer moves into the home within 92 days after registration of the property and lives in the property for at least a year.
Newly Built Homes Property Transfer Tax Exemption
To qualify for the newly built homes Property Transfer Tax exemption,
- the buyer must be an individual, not a corporation or trust.
- the buyer must be a Canadian citizen or permanent resident.
- the property must be newly built, as defined by the legislation.
- the property is priced up to $750,000 or less for a full exemption. Partial exemption is available between $750,000 to $800,000.
- the buyer moves into the home within 92 days after registration of the property and lives in the property for at least a year.