New Property Transfer Tax rules reduce the amount of property transfer tax you pay when you purchase a newly built home. Newly built homes priced up to $750,000 will be fully exempt from the property transfer tax when purchased by Canadian citizens or permanent residents as their principal residence. The exemption will save up to $13,000 for the buyers.
Partial exemptions are available for new housing valued up to $800,000. Newly constructed housing eligible for the exemption includes the first purchase of a new housing unit or a newly subdivided unit. Those who buy land and build homes to be used as their principal residence can also apply to receive a refund of property transfer tax rather than an exemption at the time of registration, if they complete construction and move in within a year of purchase.
The program will be available to buyers regardless of how long they have lived in British Columbia. The exemption will be available to first-time buyers and previous property owners alike.
The New Housing exemption will be largely funded by increasing the property transfer tax rate to 3% on the portion of fair market value over $2 million. The 1% rate on the first $200,000 of property value and the 2% rate on the value of a property between $200,000 and $2 million continue to apply.
To qualify for this exemption, the Buyers will be required to identify themselves as Canadian Citizens or permanent residents. Those who are not Canadian citizens or permanent residents will be required to disclose their citizenship and corporations will be required to disclose their directors’ citizenship.
Last updated: February 16, 2016