Property Transfer Tax
In BC we have a tax upon the purchase of real estate that other Provinces are not burdened with. Locals call this the Sunshine tax. Although the name sounds cheery many out of province purchasers can be blind sided by this added expense.
Property Transfer Tax facts
• Effective february 20, 2008 the first time home buyers program has been increased
to include purchases up to $425,000.
• No longer are first time home buyers required to meet any financing requirements
to qualify for the program.
• Purchasers are now able to pay down any amount owing on their mortgage and
remain eligible for the exemption.
• To qualify for the exemption you must be a canadian citizen or a permanent
resident as determined by immigration Canada.
• You must have resided in B.C. for a period of 12 consecutive months immediately
prior to registration of the transfer, or filed 2 income tax returns as a B.C.
resident within the last 6 years.
• You must never held a registered interest in a principal residence anywhere in
the world.
• The property must be less than 1.24 acres(0.5 hectares)
• The purchaser must occupy the residence within 92 days of the transfer being
registered, and continue to live there for one full year.
• For new construction the total cost of the land and construction may not exceed
$425,000
• Property Transfer tax is calculated at 1% of the first $200 000 and 2% of
the remainder.
• All transactions are taxable at fair market value even if no money changes
hands. (some exemptions do apply).
