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Living in a new country can be very overwhelming. You need to learn a lot of things about your new environment and be able to adapt as quickly as possible while you take care of your family. Let me help take away some of that stress from you by finding your dream home, your first home, in Canada.
I have helped a lot of newcomers to Canada, from international students, foreign workers to entrepreneurs to settle, establish themselves and become valuable members of their communities. When I started my job in the bank as a financial advisor, I made it my mission to help my clients achieve financial freedom. I also helped a lot of people achieve their dream of making Canada their home working as an Immigration Consultant.
Now as a realtor, I want to continue to help newcomers to Canada to find your dream home and have a more fulfilled life. I bring with me extensive experience I gained working in the financial and immigration fields and I want to share that with you.
One of the major expenses associated with the purchase of real estate in British Columbia is the property transfer tax (PTT). PTT becomes payable when a change in title is registered at the land title office. PTT is taxed on the fair market value of the land and improvements and is charged at a rate of: is 1% on the first $200,000.00 of the property’s fair market value, 2% on the amount between $200,000 and $2,000,000, and 3% on the amount between $2,000,000 and $3,000,000, and 5% of the remaining fair market value. This means that for a property worth $2M, the PTT is $38,000. There are circumstances wherein you may be exempted from paying the property transfer tax. Examples of these are: if you’re a first-time home buyer, you’re purchasing a newly built home, transfer of property resulting from a marriage breakdown, transfer to a registered charity, among others.
In addition, in specified areas in British Columbia like Metro Vancouver, if you’re a foreign national, foreign corporation, or taxable trustee, you must pay additional 20% property tax on your proportionate share of a residential property’s fair market value.
This means that for a property worth $2M, you may pay an additional $400,000* (assuming you don’t fall in one of the exemptions) on top of the $38,000 PTT. This additional tax is called BC Foreign Buyer’s Tax.
However, did you know that if you’re a foreign national who received confirmation under the BC Provincial Nominee Program (BC PNP), you do not pay additional property transfer tax if you claim the exemption? BC PNP is a way for high-demand foreign workers and experienced entrepreneurs to gain permanent residency in B.C.
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
The B.C. Provincial Nominee is the individual named on a valid nomination certificate issued by the province. Family members, including a spouse or common law partner, are not exempt from the additional property transfer tax and must pay the tax on their proportionate share of the property if they’re also a foreign national.
If your Confirmation of Nomination has expired, you must provide proof that you applied for permanent residency before the expiration date to be considered for the exemption.
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.
A copy of your B.C. Provincial Nominee confirmation letter needs to be submitted with the property transfer tax return to claim the exemption.
If you have paid for the foreign buyer’s tax you may be eligible for a refund on the tax 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.
* Consult with legal professional when you file a property transfer tax return to ensure you pay the correct tax amount.
