Chapter 13 – Property Transfer Tax Exemption
This is a big benefit for first time home buyers.
When purchasing real estate in BC, you must pay a property transfer tax of 1% of the 1st $200,000 plus 2% of the remaining amount. This Provincial Tax is due every time a property in B.C. changes hands. The Lawyer will collect the tax on closing and pay it to the Government.
If you are purchasing your first home, you may qualify for an exemption from property transfer tax if certain requirements are met.
WHAT ARE THE REQUIREMENTS?
- you are a Canadian Citizen, or a permanent resident as determined by Immigration Canada
- you have lived in British Columbia for 12 consecutive months immediately before the date
- you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property
- you have never owned an interest in a principal residence anywhere in the world at anytime
- you have never received a first time home buyers’ exemption or refund
- the fair market value of the property is not more than $475,000
- the land is 0.5 hectares (1.24 acres) or smaller
- the property will only be used as your principal residence
If the property does not meet all of these requirements, you may still qualify for a partial exemption.