Edwin Lam 林玉德†
Real Estate Associate Broker 地產代理††
Buying and Selling Real Estate in Metro Vancouver, BC, Canada,
please let me help you, make your dream come true.
††††† 加拿大卑詩省, 溫哥華大都會 , 物業買賣 ,† 交托我手 , 實現你的夢!††
(6) Newly Built Home Exemption
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 hasnít 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 hasnít been occupied since the subdivision of the parcel
a house converted from an existing improvement on the land. The previous improvement couldnít 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.
The exemption doesnít apply to the additional property transfer tax on residential transfers to foreign nationals or foreign corporations.
Do I Qualify?
To qualify, the property (land and improvement) must be registered at the land title office after February 16, 2016 and you must be:
a Canadian citizen or permanent resident (you will be asked to provide your Social Insurance Number (SIN) and your birth date)
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.
If you donít 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. However, if youíre a foreign national or foreign corporation, you canít be refunded any additional property transfer tax you may have paid.
To apply for the Newly Built Home Exemption, enter exemption code 49 on the Special Property Transfer Tax Return when the property is registered at a land title office.
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, and
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.
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 exemption may still apply.
If you qualify for the exemption, but didn't apply when you registered your home, you may apply for a refund.
If you registered a vacant lot and paid the tax, 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:
$750,000 or less for a full exemption
$800,000 or less for a partial exemption
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.
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, complete the Newly Built Home Application for Refund (PDF).
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.