This blog goes through the details of the BC foreign buyer tax exemptions, including how much the additional property transfer tax is, and whether you have to pay it.
Exemptions to the additional property transfer tax for foreign buyers is also highlighted, as well as details about the BC Provincial Nominee Program.
If you’re wondering whether you are eligible for the exemption, then you’ve come to the right place.
Read this blog to find out more about the BC foreign buyer tax and exemption.
How much is the BC Foreign Buyer Tax on real estate in BC?
In addition to the property transfer tax, if you are a foreign national, foreign corporation or taxable trustee, you must pay the additional property transfer tax on your share of the property.
The amount is an additional 20% of the fair market value of your proportionate share for properties purchased in the following districts:
The additional property transfer tax doesn’t apply to properties located on Tsawwassen First Nation lands.
The tax is only on the foreign buyer’s proportionate share of the property. Therefore, if you own 50% of the title to the property then the foreign buyer tax is only calculated on 50% of the value.
BC Foreign Buyer Tax Exemption
If you qualify for the standard property transfer tax exemption, in which case you would be a Canadian citizen or permanent resident, then you will also in turn be exempt from the foreign buyer tax in BC.
If you are deemed a foreign buyer, then in order to be exempt from the foreign buyer tax you either have to be a permanent resident or accepted in to the BC Provincial Nominee Program.
Applicants of the BC Provincial Nominee Program must meet the requirements, and it typically only applies to people applying to gain permanent residency that work in a skilled job sector that is in high-demand in BC.
British Columbia’s 2020 budget also includes a new exemption from the 20% additional property transfer tax (referred to as the “foreign buyer tax”) for certain partnerships.
B.C. Provincial Nominee Program
Foreign national individuals who have received confirmation under the B.C. Provincial Nominee Program may be eligible for the BC foreign buyer tax exemption.
To qualify for this exemption of the foreign buyer tax in BC you must meet the following requirements:
- You must be a confirmed B.C. Provincial Nominee when the property transfer is registered with the Land Title Office
- The property must be used as your principal residence
- The property transfer must be made to an individual
- Have never received the exemption previously. This exemption only applies to each individual once.
How Do I Claim the Permanent Resident Property Transfer Tax Exemption?
To claim the exemption, your legal professional must send a copy of your B.C. Provincial Nominee confirmation letter together with the Property Transfer Tax Return and the Additional Property Transfer Tax Return (FIN 532) (PDF).
BC Foreign Buyer Tax Refund
Foreign national individuals who become a permanent resident of Canada or Canadian citizen within one year of the date the property transfer tax is registered with the Land Title Office may be eligible for a refund of the additional transfer tax
Ultimately, even if you are not a part of the BC Nominee Program, but you receive a permanent residency from another source within one year of home ownership, you can still apply to have the additional property transfer tax refunded.