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Property transfer tax for homes in b.c 2018

2/22/2018

Effective February 21, 2018, there has been a slight change made to the Property Transfer Tax for homes in B.C. Previously, the property transfer tax was calculated as:

1% on the first $200,000
2% on the portion between $200,000 and $2,000,000
3% on the portion greater than $2,000,000

As of February 21, 2018, the property transfer tax is calculated as:

1% on the first $200,000
2% on the portion between $200,000 and $2,000,000
3% on the portion greater than $2,000,000
If the property is residential, a further 2% on the portion greater than $3,000,000 will be applied

In addition to this, changes have been made to the property transfer tax for foreign entities & taxable trustee:

Currently, if the registered property is within Greater Vancouver Regional District and has been registered on or before February 20, 2018 the property transfer tax remains at 15% of the fair market value of the property.
Effective from February 21, 2018 if the property is registered on or after this date and is within the following areas, the tax amount of 20% will be applied of the fair market value of the property (with a few exceptions*).
- Capital Regional District
- Fraser Valley Regional District
- Greater Vancouver Regional District
- Regional District of Central Okanagan
- Regional District of Nanaimo.

*1) If the registration occurs before or on May 18, 2018 and is subject to a written agreement dated prior to February 21, 2018.
2) If the property transfer is subject to: a court order, Order Nisi of Foreclosure, separation agreement dated on or before February 21, 2018.
3) If the property transfer is: from the representative of an estate to the beneficiary, or to a surviving joint tenant, when the death of the deceased occurred on or before February 20, 2018
In these 3 cases, the additional property transfer tax won’t be applied.
However, these exceptions don't apply to the Greater Vancouver region

Empty homes tax (vacancy TAX)

11/8/2017

The City of Vancouver has implemented an annual tax on empty or under-utilized residential properties called the Empty Homes Tax. Every owner of residential property in Vancouver is required to submit a property status declaration each year to determine if their property is subject to the tax.

The Empty Homes Tax will be applied annually, with the first tax year beginning on January 1, 2017.
Properties are considered to be vacant if they have been unoccupied for more than 180 days during the tax year (Jan 1, 2017 – Dec 31, 2017).
The rate of the Empty Homes Tax is 1% of a property’s assessed taxable value.
The Empty Homes Tax will only apply to Class 1 Residential* properties that were not used as a principal residence or rented for at least six months of the year, and do not qualify for an exemption.
Class 1 Residential* properties include: single-family residences, multi-family residences, duplexes, apartments, condominiums, nursing homes, seasonal dwellings, manufactured homes, some vacant land, farm buildings and daycare facilities.
For 2017, you must submit your 2017 property status declaration by February 2, 2018.

Property Transfer Tax - What is it?

10/21/2017

Property Transfer Tax (PTT) is one of the biggest closing costs when you are buying a property. It is basically a land registration tax paid by the buyer(s) to the Province of British Columbia. Other transactions that will also trigger PTT include transfer of title, foreclosure, or transfer of title from individual(s) to a corporation.

The amount of PTT is based on the fair market value of the land and improvement. The fair market value is determined either by the purchase price on the contract, a recent appraisal by an independent appraiser, or BC Assessment. The tax structure is as follows:

1% on the first $200,000
2% on the balance up to and including $2,000,000
3% on the balance greater than $2,000,000

There are a few exemptions in which PTT is exempted. The most commonly seen are:

First Time Home Buyer's Program
Newly Built Homes
Transfer of a Principal Residence between Related Individuals.
Transfer resulting from a Marriage Breakdown

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Property transfer tax for homes in b.c 2018

Empty homes tax (vacancy TAX)

Property Transfer Tax - What is it?

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