The BC government has made several significant changes to its Property Transfer Tax program, which are effective today. The changes affect certain newly-built homes under $750,000, first time home buyers, luxury homes over $2 million, buyer’s country of residence reporting and ownership of properties held by corporations.
Specifically, the changes are as follows:
For Canadian citizens and permanent residents who purchase newly-built homes, condos and townhouses under $750,000, a property transfer tax exemption, which is a potential savings in closing costs of up to $13,000;
The first time home buyers exemption will remain in place for homes under $475,000;
For homes sold over $2 million, a 1% increase in property transfer tax to 3%;
Buyers will need to start disclosing their country of residence in all property transactions; and
The beneficial ownership of properties held by corporations will also be tracked.