Real Estate Taxes in British Columbia, Canada
The following is a basic outline of Real Estate taxes you can expect to pay in British Columbia:
- Property Transfer Tax: 1% of the first $200,000 CDN & 2% on the remainder. If you are a first time home owner you are exempt from this tax. To qualify for the first-time owner tax exemption you cannot have owned property from anywhere around the world and you must be a Permanent Resident of Canada or a Canadian Citizen, lived in the province of purchase for over 1 year, filed 2 Canadian Tax Returns within the last 6 years, and must immediately occupy the property for 1 year after purchase. The purchase price must be under $500,000 and the land must be 0.5 hectares (1.24 acres) or smaller. You may qualify for a partial exemption from the tax if the property is purchased for under $525,000.
- The Property Transfer Tax Act as amended imposes an additional Property Transfer Tax of 15% of the fair market value of any residential property being purchased by a Foreign Entity.
- Luxury Tax: The property transfer tax is 3% on homes worth over $2 million.
- Clearance Certificate: Paid by the seller and can range from $300-$1,000 CDN depending on the complexity of the sale.
- Capital Gains Tax: (Will not affect you if on your principle residence)
- Good and Service Tax (GST): 5% GST is charge on newly constructed homes. New home buyers of homes under $350,000 can apply for a partial rebate of this tax as long as the home will be the purchaser’s primary residence. Homes between $350,000 and $450,000 CDN have a smaller rebate that can be applied for and no rebates are available over $450,000 CDN.
- Property Tax: This is an annual fee levied with local communities. There are many different amounts of tax you may have to pay depending on the area. We can help you determine how much you will have to pay when viewing the homes you are interested in purchasing. Different homes in different areas will all have different taxes and will be taxed appropriately in correlation of the property’s assessment value.
Miscellaneous Fees on BC Real Estate
- Realtors® Fees: If you purchasing a property there is absolutely no fee to obtain a Realtor. If you are looking to sell a home the commission we charge straight across the board for all clients is 7% on the first $100,000 and 5% on the remaining balance. Just under half of that commission will be paid out the Buyer’s Realtor and the commission at time depending on the client can be negotiable.
- Lawyer’s Fees: Lawyers in BC, Canada will review the offer of purchase, search the title, draw up the mortgage documents and tend to the closing dates. Typical Legal Fees for these services are between $500-$800 CDN.
- Home Inspection Fees: This protects you from purchasing a home with defects not found by the untrained eye. This typically will cost anywhere from $450-$800 CDN depending on the size and the condition of the home.
Strata Fees, Service Charges for utility hook ups & Property Insurance may also be applied to the total charges of purchasing your property.