ALL the Real Estate Buying Taxes.

Property Transfer Tax (PTT) – The PTT is calculated on the fair market value of a property and amounts to 1% on the first $200,000 of value PLUS 2% of the portion of value from $200,000 to $2,000,000 PLUS 3% of the value from $2,000,000 to $3,000,000 and 5% of the value over $3 million. An easy calculator to use can be found at

http://www.bcrealestatelawyers.com/ptt-calculator/

PTT applies to all real estate purchases – Residential, commercial and industrial
Exemption from PTT for used homes;
- Purchase price must be $500,000 or less (for full exemption)
- Buyer(s) must be a Canadian citizen or permanent resident. However, a refund may apply if one becomes a Canadian or permanent resident within 1 year.
- Must have lived in BC for 12 consecutive months immediately before the date of title transfer – OR have filed at least 2 income tax returns as a BC resident in the last 6 years.
- Must NEVER have owned an interest in a PRINCIPAL RESIDENCE anywhere in the world at anytime.
- You must move in within 92 days of title transfer and stay for at least 1 year.
Exemption from PTT for NEW homes;
- The property must have a fair market value of $750,000 or less (for full exemption) – ($750,000 – $800,000 for partial exemption)
- Buyer must be a Canadian citizen or permanent resident amnd must move in within 92 days of title transfer and use the property as a Principal Residence for 1 year.
- If one purchases a vacant lot and build a home, one may apply for a refund once the home is completed and moved in – BUT the Fair Market Value must be under $800,000.
- Buyer must meet all of the above qualifications.
Exemption from PTT for adding people to title:
- You can add your spouse, parents, grandparents and your children and grand children BUT NOT siblings or aunts, uncles, cousins etc.. The definition of a ‘spouse’ is having a ‘marriage-like’ relationship for 2 consecutive years – and includes same gender relationships.
- The property must be a principal residence of the Buyer or Seller for at least 6 months immediately prior to title transfer.
- Applies to Residential property only AND classified as residential by BC Assessment.
- The Land component must be 1.24 acres or smaller. There is a partial exemption for larger parcels.
- There can be partial exemptions if one buyer is related and the other is not.
  - Recreational Residence (less than $275,000)
  - Marriage breakdown – starting over again
  - Family farms involving individuals – or to or from a Family Farm Corporation
  - To correct a conveyancing error or pursuant to an Agreement for Sale
  - A Registered charity
  - To or from Joint Tenants to Tenants in Common
  - Some others on the government website.
    
    2. SPECULATION TAX

This tax applies to the owners – not with the land – and is based on the ownership as of December 31 each year.
Tax is due by July 2^nd each year
Applies to; Metro Vancouver Capital Regional District, Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo, Lantzville. But EXCLUDES reserve lands, treaty lands and lands of self-governing Indigenous Nations.
0.5% of the property’s assessed value for EVERYONE in 2018. In 2019, it is 2% for foreign owners or satellite families and 0.5% for Canadian citizens or permanent residents.
A ‘Satellite family’ is defined as an individual or spousal unit whose majority of total worldwide income is not reported on a Canadian tax return.
Declaration must be completed by each owner.

EXEMPTION from Speculation Tax

- The property must be your Principal Residence or occupied by a tenant (The tenant can be family if it is their Principal Residence for at least 6 months, and no rent need be paid)
- There is no tax carry over when buying a property from someone who has not paid the tax. The tax is owed by the seller of the property.
- https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax/exemptions-speculation-and-vacancy-tax/individuals
- 3. Vancouver Empty Homes Tax

Applies to the property not just the seller, so if you are buying a Vancouver property make sure the seller has paid the Speculation Tax. Ask the seller for a completed and filed status declaration – a warranty confirming the property has not been vacant for more than 6 months
The Rate is 1% of the assessed value
ALL homeowners (Vancouverites) must submit their declaration
Detailed list of Exemptions at https://vancouver.ca/home-property-development/empty-homes-tax-frequently-asked-questions.aspx
4. Foreign Buyers Tax

Pay 20% of the fair market value of the property – but ONLY RESIDENTIAL
If the property is a mixed use (residential, commercial) then the tax only applies to the Residential portion
Lands that fall under this tax are; Capital Regional District, Greater Vancouver Regional District, Fraser Valley Regional District, Central Okanagan Regional District and Nanaimo Regional District
Applies to all buyers who are not Canadian citizens, permanent residents or registered under the Provincial Nominee Program
A refund may apply if the buyer becomes a Permanent Resident within one year
The Tax liability may be split if one buyer is eligible
5. Goods and Services Tax (GST)

5% tax on new or substantially renovated residential properties
Substantially Renovated is defined as removal or replacement of most of the house construction, except for; the foundation, exterior walls, interior supporting walls, floor, roof and staircase.
REBATES; 2 types
- New Housing Rebate – 36% of the GST paid on homes up to $350,000 with a partial rebate up to $450,000. The rebate is claimed on closing.
- New Rental Rebate (NRR) – 36% of the GST. The NRR is deferred so you will need to pay the full 5% GST and wait for the 36% rebate if you qualify
- The GST is generally deferred on non-residential properties