Property Transfer Tax BC Exemption
If you’re wondering about how to avoid BC property transfer tax, the only way is via qualifying for an exemption.
The most notable exemptions are the first time home buyer PTT exemption, and the newly built home PTT exemption.
First Time Home Buyer Property Transfer Tax Exemption
To help enter in to the market, the first time home buyer’s (FTHB) program gives an exemption to the property transfer tax in the case that you can qualify.
You qualify for a full refund if:
- You are a Canadian citizen or permanent resident;
- You’ve lived in BC for 12 consecutive months before the date the property is registered; or You’ve filed 2 income tax returns as a BC resident in the last 6 years;
- You have never owned an interest in a principal residence anywhere, anytime; and
- You have never received a first time home buyers’ exemption or refund.
- Your property meets the exemption requirements of being used as a principal residence; has a fair market value that does not exceed $500,000; and the land is equal to or less than 0.5 hectares (1.24 acres)
You may qualify for a partial refund if:
- The property has a fair market value of between $500,001-$524,999. (is less than $525,000)
- The land is greater than 0.5 hectares.
- A portion of the land is used for commercial purposes or there are other homes on your land (only your primary residence is eligible).
Property Transfer Tax on New Homes Exemption
There’s a PTT exemption for newly built homes with a fair market value of up to $750,000, including a house constructed on vacant land, a new apartment in a newly built condominium building, a manufactured home on vacant land, and other newly built homes. There are also occupancy requirements.
There’s a partial exemption for property with fair market value of $750,000 – $800,000.
Vacant Land Property Transfer Tax Refund
If you registered a vacant lot and paid the tax, you may apply for a refund if you have:
- built a new home on the land worth $750,000 or less;
- moved into the home as a principal residence within one year of registering the property; and
- meet the qualifications for the Newly Built Home Exemption.
There are also other, less common exemptions available. For more info information on property transfer tax and what may qualify for an exemption, you can also refer to the government’s guide for Property Transfer Tax Exemptions List in BC
If you’re looking to buy a home and want a realtor with experience that can guide you through the costs of purchasing, then reach out to us today.
Start a conversation by calling 604-765-0376. Prefer text? 604-319-0200 or email [email protected]. We’re here to help.