First Time Home Buyers’ Program-Property Transfer Tax (PTT)
Do you qualify full or partial?
The property must be:
1. located in B.C.
2. have a fair market value of $500,000
3. 1.24 acres or 0.5 hectares, smaller
The buyer must:
1. Be a Canadian citizen or permanent resident
2. have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income
tax returns as a B.C. resident in the last 6 years
3. have never owned an interest in a principal residence anywhere in the world at any time
4. have never received a first time home buyers’ exemption or refund
If one or more of the purchasers don’t qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.
Foreign entities and taxable trustees are not eligible for the exemption. If you are an individual who doesn’t qualify because you are not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund.
When you are buying a property you are responsible for pay Property Transfer Tax, the tax rate varies.
BUYERS TAX UPDATED
REAL ESTATE COUNCIL OF B.C.
OFFICE OF THE SUPERINTENDENT OF REAL ESTATE
FOREIGN BUYER TAX
This now applies to FOREIGN BUYERS
* An additional property transfer tax applies to residential property transfers to foreign entities in the
* Greater Vancouver Regional District
* Capital Regional District
* Fraser Valley Regional District
* Regional District of Central Okanagan
* Regional District of Nanaimo
• The Buyer is and will be on the Completion Date, a “foreign entity” or a “taxable trustee” as defined in the British Columbia Property Transfer Tax Act [as amended collectively the “Foreign Entity”]. The Buyer is aware that that the Property Transfer Tax Act imposes an additional 20% Property Transfer Tax of the fair market value of any residential property being purchased by a Foreign Entity. The Buyer will thus be required to pay Property Transfer Tax equal to the total of:
1% under $200,000 = $ 2,000.00
2% over $200,000 and less than $2 million = $ 36,000.00
3% over $2 million and less than $3 million = $ 30,000.00
Tax 5% on amount over $ 3 million = $ 150,000.00
TOTAL TAX ON $6 million = $ 218,000.00
20% FOREIGN BUYERS on $6 million = $1,200,000.00
THEREFORE TOTAL TAXES ARE $1,418,000.00
Managing Broker, Royal LePage Westside