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 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 Tax

Foreign buyers of foreign national or foreign corporation, an addition of 20% property transfer tax applies.

 

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 live in the property for at least a year.

 

Newly Built Homes Property Transfer Tax Exemption

To qualify for the 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 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 live in the property for at least a year.