Property Transfer Tax Exemptions
The three most notable ways to avoid property transfer tax by form of an exemption are:
- First Time Home Buyer Property Transfer Tax Exemption
- Newly Built Home PTT Exemption
- Family Exemptions
First Time Home Buyers Property Transfer Tax Exemption
To help enter the market, the first-time home buyer’s (FTHB) program gives an exemption to the property transfer tax in the case that you can qualify. If you are a first-time home buyer and Canadian citizen/permanent resident that is purchasing a resale property to live in as your primary residence under $500,000, then you may be eligible for a full property transfer tax exemption. There is also a partial first-time home buyer PTT exemption for properties less than $525,000.
Newly Built Homes Property Transfer Tax Exemption
There is a PTT exemption for newly built homes with a fair market value of up to $750,000, including a house constructed on vacant
land, a new apartment in a newly built condominium building, a manufactured home on vacant land, and other newly built homes.
There are also occupancy requirements, and you may be eligible for a partial exemption for newly built home with fair market value of $750,000 – $800,000.
Family Exemptions
When a related individual transfers a principal residence or an interest in a principal residence to you, you may be exempt from paying PTT. To qualify for a full exemption from PTT, the entire property must meet these requirements, regardless of the interest in the property that may be transferred.
Who is considered a related individual?
Your spouse, child, grandchild, great-grandchild, parent, grandparent or great-grandparent, the spouse of your child, grandchild or great-grandchild, the child, parent, grandparent, or great-grandparent of your spouse.
Who is NOT considered a related individual?
Your sister, brother, uncle, aunt, niece or nephew is not considered to be a related individual. This means, for example, that you are required to pay PTT if your brother or sister transfers a principal residence to you.
For more info information on property transfer tax and what may qualify for an exemption, you can also refer to the government’s website: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions
