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WHAT YOU NEED TO KNOW ABOUT PROPERTY TRANSFER TAX

 First off, what is property transfer tax? 

Property transfer tax (PTT) was introduced in 1987, when the average price of a Vancouver home was about $150,000, in order to tax speculation on high-end properties.

It is levied anytime changes are made to a property’s title, beginning at a rate of 1% of the first $200,000 of a property, 2% on the amount between $200,000 and $2M, and 3% on the portion greater than $2M. 

There is exemptions from having to pay to property transfer tax, here are the two most common:

1. First Time Home Buyers’ Program

To qualify for a full exemption, at the time the property is registered you must:

  • be a Canadian citizen or permanent resident
  • 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
  • have never owned an interest in a principal residence anywhere in the world at any time 
  • have never received a first time home buyers’ exemption or refund

and the property must:

  • be located in B.C.
  • only be used as your principal residence
  • be 0.5 hectares (1.24 acres) or smaller
  • For a full exemption, homes that are purchased with a fair market value of $500,000 or less,
  • For a partial exemption for properties with a fair market value of $500,000 to $525,000. 

More info and specifics: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers

2. Newly Built Homes Exemption

To qualify you must be,

  • an individual (not a corporation) 
  • a Canadian citizen or permanent resident 

and the property must:

  • be located in B.C.
  • only be used as your principal residence
  • have a fair market value of $750,000 or less
  • be 0.5 hectares (1.24 acres) or smaller 
  • New homes with a fair market value of $750,000 for a full exemption and partial exemption for new homes under between $750,000 and $800,000.

Get all the details and specifics here:

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/newly-built-home-exemption

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