Property Transfer Tax Exemptions.

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