Facebook button
Myspace button

Property Transfer Tax

 

Property Transfer Tax is a provincial tax applied against purchases of real estate in the province at the rate of 1% on the first $200,000 of the purchase price and 2% of the remainder. This has to be paid at the time of closing and can not come out of proceeds.

There is a full or partial exemption for “first time buyers”. You must fall under the following criteria:

  • Must be Canadian citizens or permanent residents of Canada;
  • Have resided in B.C. for a least 12 months or filed income tax returns as a resident of B.C. for 2 of the 6 taxation years immediately prior to registration of the transfer;
  • Never previously owned a principal residence anywhere in the world.
  • Property must be $425,000 or less and a proportionate exemption is available for properties with a purchase price between $425,000 and $450,000. (For a comprehensive discussion see The First Time Buyers’ Guide.)