Kim little

Down to Earth Real Estate Advice

property transfer tax and its exemptions

When buying real estate in British Columbia, the government imposes a Property Purchase Tax based on the greater of the purchase price or the fair market value of the property. The tax is calculated at 1% of the first $200,000 and 2% of the balance of the value/purchase price.

Property Purchase Tax Exemption

You may qualify for a tax exemption if you, and the property you are purchasing, meet the following guidelines:

  • Your down payment can not exceed 30% of the purchase price
  • The maximum purchase price to qualify for the exemption in Vancouver, Victoria, Squamish, Whistler, and the Fraser Valley is $275,000. In all other areas of the province, the maximum qualifying purchase price is $225,000.
  • You may never have previously owned an interest in your principal residence (anywhere in the world).
  • If you pay more than $11,000 towards the principal of your mortgage within the first year, or if your outstanding mortgage amount is less than 70% at the end of the first year, you will lose your property purchase tax exemption ($9,000 in some parts of the province).
  • You must be a Canadian Citizen or Landed Immigrant and have been a resident of British Columbia for at least 12 consecutive months immediately prior to the purchase.
  • The purchaser must occupy the property as their principal residence within 92 days of completion.
  • Under certain circumstances, the purchase of raw land or a building lot may qualify.
  • Other conditions apply.

OTHER TYPES OF EXEMPTIONS AVAILABLE- If you sell  to or are buying from a " vertically related" family member such as mother, father, grandmother,child,mother in law or grandfather in law etc..

here is a list of full exemptions that exist

 
 
 
 here are  examples of specific  full exemptions of a transfer of a principal residence  ( to related family members)  canhttp://www.sbr.gov.bc.ca/documents_library/bulletins/PTT_005.pdf
 
 
  A full list of possible exemptions can be found here

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.