Peter Kalicki

The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.

If one or more of the purchasers don’t qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.

For example, if you qualify and purchase a property with a fair market value of $400,000 with a person who doesn’t qualify you would still qualify. If you owned a 60% interest in the property, 60% of the tax amount would be eligible for the exemption.

Do I Qualify?

To qualify for a full exemption, at the time the property is registered you must:

• be a Canadian citizen or permanent resident
• have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years
• have never owned an interest in a principal residence anywhere in the world at any time 
• have never received a first time home buyers' exemption or refund

and the property must:

• be located in B.C.
• only be used as your principal residence
• have a fair market value of:
  • $475,000 or less if registered on or before February 21, 2017, or
  • $500,000 or less if registered on or after February 22, 2017
• be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption from the tax if the property:

• has a fair market value less than:
  • $500,000 if registered on or before February 21, 2017, or
  • $525,000 if registered on or after February 22, 2017
• is larger than 0.5 hectares
• has another building on the property other than the principal residence

Find out the amount of your exemption if you qualify.

Foreign entities and taxable trustees are not eligible for the exemption. If you are an individual who doesn’t qualify because you are not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund of the property transfer tax. To apply for a property transfer tax refund in this case, call 250 387-0555.

Find out if you are eligible to claim a refund of any additional property transfer tax you may have paid.

Apply

To apply for the First Time Home Buyers' Program, select or enter exemption code FTH on the Property Transfer Tax Return.

After you have applied you must meet additional requirements during the first year you own the property to keep the tax exemption.

Penalty for False Declaration

All applications are reviewed. You will be charged a penalty equal to double the tax if you falsely declare that:

• you have never owned an interest in a principal residence anywhere in the world at any time, or
• you have never received a first time home buyers' exemption or refund

First Year of Ownership

At the end of the first year you own the property you will receive a letter. The letter is to conditionally confirm that you meet the occupancy and property value requirements after you:

• purchased an existing home, or 
• purchased vacant land and built a home

Existing Home

To keep the tax exemption you must have:

• moved into your home within 92 days of the date the property was registered
• continued to occupy the property as your principal residence for the remainder of the first year

You may keep part of the exemption if you moved out before the end of the first year.

If the owner passed away, or the property is transferred because of a separation agreement or a court order under the Family Law Act before the end of the first year, you still qualify to keep the tax exemption.

Built New Home

If you registered a vacant lot and built your own home, to keep the tax exemption:

• the fair market value of the land when you registered the property plus the cost to build your home must be:
  • $500,000 or less if registered on or before February 21, 2017, or
  • $525,000 or less if registered on or after February 22, 2017
• you must have built and moved into your home within 1 year of the date the property was registered
• you must have continued to occupy the property as your principal residence for the remainder of the first year

You may keep part of the exemption if you moved out before the end of the first year.

If the owner passed away, or the property is transferred because of a separation agreement or a court order under the Family Law Act before the end of the first year, you still qualify to keep the tax exemption.

Refunds

To apply for a refund:

1. Complete, print and sign the First Time Home Buyers' Application for Refund (FIN 265) (PDF)
2. Scan the completed form and any required supporting documentation and either:
   • Send them electronically using our secure onlineservice
   • Email them to pttenq@gov.bc.ca

In addition to the property transfer tax, if you are a foreign national, foreign corporation or taxable trustee, you must pay the additional property transfer tax on your proportionate share of a residential property transfer if the property is within specified areas of B.C. 

Your proportionate share is the percentage of interest that you are registering on title with the Land Title Office. For example, if you are a foreign entity (foreign national or foreign corporation) acquiring a 70% interest in a property, you pay the additional property transfer tax on 70% acquired interest.

You or your legal professional must also file the Additional Property Transfer Tax Return (FIN 532) (PDF) with the Property Transfer Tax Return, even if you or the property transfer qualifies for an exemption.

All additional property transfer tax returns will be reviewed and verified. Willful tax avoidance may be subject to penalties.

Tax Amount and Specified B.C. Areas

If the property transfer is registered on or before February 20, 2018 and is within the Greater Vancouver Regional District, the tax amount is 15% of the fair market value of your proportionate share.

If the property transfer is registered on or after February 21, 2018 and is within the following areas, the tax amount is 20% of the fair market value of your proportionate share:

• Capital Regional District
• Fraser Valley Regional District
• Greater Vancouver Regional District
• Regional District of Central Okanagan
• Regional District of Nanaimo

The additional property transfer tax doesn’t apply to properties located on Tsawwassen First Nation lands.

Transitional Rules

If the property is located in the Capital Regional District, Fraser Valley Regional District, Regional District of Central Okanagan or Nanaimo Regional District and the property transfer is registered on or after February 21, 2018, there are two instances where you don’t have to pay the additional property transfer tax:

1. You don’t have to pay the additional property transfer tax if the registration occurs before or on May 18, 2018 and the property transfer is subject to a written agreement dated on or before February 20, 2018. Otherwise you will have to pay the additional property transfer tax.

   Note: If the written agreement is assigned to a foreign entity or taxable trustee on or after February 21, 2018, the additional property transfer tax must be paid.

2. You don’t have to pay the additional property transfer tax and your property can be registered at any time if:
   • The property transfer is subject to a court order dated on or before February 20, 2018
   • The property transfer is subject to an Order Nisi of Foreclosure dated on or before February 20, 2018
   • The property transfer is subject to a separation agreement which was signed on or before February 20, 2018
   • The property transfer is from the personal representative of a deceased’s estate to the beneficiary and the death of the deceased occurred on or before February 20, 2018
   • The property transfer is to a surviving joint tenant when the death of the deceased occurred on or before February 20, 2018

Tax on Residential Portion of Property

The additional property transfer tax applies on only the residential portion of a property located in the specified areas of B.C. There are three types of properties where this may occur:

• Property classified as residential (class 1) by BC Assessment. You pay the additional tax based on the fair market valueof the full property.
• Property classified as farm land by BC Assessment that includes a residential improvement, such as a building used as a farmer’s home. You pay the additional tax on the value of the residential improvement plus 0.5 hectares of land.
• Property classified as commercial by BC Assessment that includes a residential improvement (class 1), such as a condo in a building with commercial space. You pay the additional tax on the value of the residential improvement.

Exemptions

There are two exemptions to the additional property transfer tax:

1. Generally, if you are exempt from property transfer tax, you are also exempt from the additional property transfer tax.

   The exemption doesn’t apply to the additional property transfer tax in the following situations:

   • A transfer resulting from an amalgamation
   • A transfer to a surviving joint tenant
   • A transfer where the transferee is or becomes a trustee in relation to the property, even if the trust does not change
2. You may not have to pay the additional property transfer tax if you are a confirmed C. Provincial Nomineeand meet certain criteria.

The additional property transfer tax doesn’t apply to registration of trusts that are mutual fund trusts, real estate investment trusts or specified investment flow-through trusts.

B.C. Provincial Nominee

If you are a foreign national individual who receives confirmation under the B.C. Provincial Nominee Program, you do not pay the additional property transfer tax if you claim the exemption.

To qualify for this exemption:

• You must be a confirmed B.C. Provincial Nominee when the property transfer is registered with the Land Title Office
• The property must be used as your principal residence
• The property transfer must be made to an individual

You may claim this exemption only once. If you purchase another property, you must pay the additional property transfer tax. Qualifications for every exemption claimed are reviewed.

To claim the exemption, your legal professional must send a copy of your B.C. Provincial Nominee confirmation letter together with the Property Transfer Tax Return and the Additional Property Transfer Tax Return (FIN 532) (PDF).

If you were confirmed as a B.C. Provincial Nominee between August 2, 2016 and March 17, 2017, you may be eligible for a refund of the additional property transfer tax you paid.

You may be eligible for a refund if:

• You became a permanent resident or Canadian citizen within one year of the date the property transfer was registered with the Land Title Office (see additional criteriabelow)
• Tax was paid in error, such as you paid the additional tax on a residential property located outside the specified B.C. areasor you qualified for an exemption at the time of registration but the exemption was never claimed
• You were confirmed as a C. Provincial Nomineeand paid the additional property transfer tax between August 2, 2016 and March 17, 2017 (see additional criteria below)

Find out how to apply for a refund.

Permanent Resident or Canadian Citizen

In addition to becoming a permanent resident or Canadian citizen within one year from the date the property transfer was registered with the Land Title Office, to qualify for the refund, you must also have:

• Used the home as your principal residence
• Moved into the home within 92 days from the date the property transfer was registered
• Continued to live in the home as your principal residence for at least one full year after the date the property transfer was registered

If you purchase more than one property as a foreign national and within one year you became a permanent resident of Canada or Canadian citizen, you can only claim the refund once and the refund must be claimed on your principal residence.

You must apply for a refund after the first anniversary of the date the property transfer was registered and within 18 months from the date the property transfer was registered at the Land Title Office.

Supporting Documents

A Canadian permanent resident card is the preferred proof of permanent residency. The following documents are also acceptable if there is no permanent residency card:

• Valid Immigrant Visa and Record of Landing (IMM100)
• Confirmation of Permanent Residence document (IMM5292 or IMM5509) – the confirmation number starts with a T followed by nine digits

Note: Permanent residency requirements differ for income tax purposes. For the additional property transfer tax, you must be a permanent resident of Canada as outlined in the Immigration Act.

B.C. Provincial Nominee

You may be eligible for a full or partial refund of the additional property transfer tax that you paid between August 2, 2016 to March 17, 2017, if you:

• Are a foreign national individual
• Purchased or gained an interest in a residential property in the GVRD
• Held a nomination certificate or were confirmed under the B.C. Provincial Nominee program on the date the property transfer was registered with the Land Title Office

If you purchased more than one property within that time, you can only claim a refund on your principal residence.

You must apply for a refund within 18 months from the date the property transfer was registered.

Apply

To apply for a refund:

1. Complete, print and sign the Additional Property Transfer Tax Application for Refund (FIN 274) (PDF)
2. Scan the completed form and any required supporting documentation, and either:
   • Send them electronically using our secure onlineservice
   • Email them to ATTENQ@gov.bc.ca

When you purchase or gain an interest in a property, you may qualify for a tax exemption. To find out more about the types of transfers that may qualify for an exemption, refer to the information provided below.

Family Exemptions

• Transfer of a principal residence (PDF)
• Transfer of a recreational residence (PDF)
• Transfer resulting from a marriage breakdown (PDF)
• Transfer of a family farm involving individuals (PDF)
• Transfer of a family farm to or from a family farm corporation (PDF)

Other Exemptions

• Transfer of a newly built home
• Transfer to correct a conveyancing error (PDF)
• Transfer to a registered charity (PDF)
• Registration of an agreement for sale (PDF)
• Transfer to or from joint tenants to tenants in common (PDF)
• Transfer following bankruptcy (PDF)
• Transfer for subdividing property (PDF)
• Registration of multiple leases on the same property (PDF)
• Transfer for company amalgamation (PDF)
• Transfer for escheats, reverts or forfeits to or from the Crown (PDF)
• Transfer under the Veterans' Land Act (Canada) (PDF)
• Transfer to minors from the Public Guardian and Trustee (PDF)
• Transfer to Status Indians and Indian Bands (PDF)
• Transfer to or from trust companies or the Public Trustee (PDF)

Exemption Codes

If you qualify for an exemption, you need to enter the appropriate exemption code on the Property Transfer Tax Return when you register the property transfer.  View a list of exemption codes along with a description for each code.

The Newly Built Home Exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home.

A newly built home includes:

• a house constructed and affixed on a parcel of vacant land
• a new apartment in a newly built condominium building
• a manufactured home that is placed and affixed on a parcel of vacant land
• an already constructed house that is removed from one parcel of land and affixed to another parcel of vacant land, as long as the house hasn’t been occupied since it was placed on the new parcel of vacant land
• a house resulting from the division of an existing improvement affixed to a parcel of land that was also subdivided, as long as this house hasn’t been occupied since the subdivision of the parcel
• a house converted from an existing improvement on the land. The previous improvement couldn’t have been used as residential (e.g. a warehouse converted into apartments).

If you qualify for the exemption, you may be eligible for either a full or partial exemption from the tax.

If you paid property transfer tax when you purchased vacant land and you now have a newly built home on the land, you may be eligible for a refund of the property transfer tax you paid.

Do I Qualify?

To qualify, the property (land and improvement) transfer must be registered at the Land Title Office after February 16, 2016 and you must be:

• an individual
• a Canadian citizen or permanent resident (you will be asked to provide your Social Insurance Number (SIN) or proof of permanent residency and your birthdate)

and the property must:

• be located in B.C.
• only be used as your principal residence
• have a fair market value of $750,000 or less
• be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption, if the property:

• has a fair market value greater than $750,000 and less than $800,000
• is larger than 0.5 hectares
• has another building on the property other than the principal residence

Find out the amount of your exemption if you qualify.

Foreign entities and taxable trustees are not eligible for the exemption. If you are an individual who doesn’t qualify because you are not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund of the property transfer tax.

Find out if you are also eligible to claim a refund of any additional property transfer tax you may have paid.

Apply

Select or enter exemption code 49 on the Property Transfer Tax Return to apply for the Newly Built Home Exemption.

Occupancy Requirements

After you have registered the property, you must meet occupancy requirements during the first year you own the property. To keep the tax exemption you must:

• Move into your home within 92 days of the date the property was registered at the Land Title Office
• Continue to occupy the property as your principal residence for the remainder of the first year

You will receive a letter at the end of the first year to confirm you meet these requirements.

You may keep part of the exemption if you moved out before the end of the first year. However, you must repay a portion of the amount of the exemption based on the number of days you moved out before the end of the first year.

Note: If the owner passed away, or the property is transferred because of a separation agreement or a court order under the Family Law Act before the end of the first year, the full exemption still applies.

Refund

If you qualify for the exemption, but didn't apply when you registered your home, you may apply for a refund.

Vacant Land

If you purchased a vacant lot and paid the tax upon registration, you may apply for a refund if:

• You have a newly built home on the land
• You meet the qualifications for the Newly Built Home Exemption
• The fair market value of the land plus the cost of the newly built home is $800,000 or less
• You moved into your home and continued to occupy the property as your principal residence for the remainder of the first year.

If you move out before the end of the first year, you may be eligible for a partial refund of the tax you paid based on the number of days you occupied the property.

If the owner passed away, or the property is transferred because of a separation agreement or a court order under the Family Law Act before the end of the first year, you may still be eligible for a refund.

Apply for a Refund

To apply for a refund:

1. Complete, print and sign the Newly Built Home Application for Refund (FIN 272) (PDF)
2. Scan the completed form and any required supporting documentation and either:
   • Send them electronically using our secure online service
   • Email them to pttenq@gov.bc.ca

If you also qualify for a refund of the additional property transfer tax, you can indicate this on the same form and apply for both refunds together.

You must apply for a refund after the first anniversary of the registration date and within 18 months from the date you registered the property at the Land Title Office.