BC & federal REAL ESTATE REsources

When you purchase or gain an interest in property that is registered at the Land Title Office, you or your legal professional must file a property transfer tax return and you must pay property transfer tax, unless you qualify for an exemption.

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

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

The speculation and vacancy tax is an annual tax paid by some owners of residential properties in designated taxable areas of B.C.

The tax is designed to discourage housing speculation and people from leaving homes vacant in designated areas of B.C. More than 99 percent of people in British Columbia are exempt from the tax.

Residential property owners in the taxable areas who receive a declaration letter must complete a declaration before March 31 every year, even if they're eligible for an exemption.

The BC home flipping tax applies to the profit you earn from selling a property in British Columbia (including presale contracts) if you owned the property for less than 730 days.

The tax is imposed under the Residential Property (Short-Term Holding) Profit Tax Act, which takes effect starting January 1, 2025.Property purchased before the tax’s effective date may be subject to the tax if sold on or after January 1, 2025 and owned for less than 730 days, unless an exemption applies.The BC home flipping tax is separate and distinct from the federal property flipping rules and is not harmonized or administered with the federal or B.C. income tax.

Effective January 3, 2023, the Property Law Act was amended to include a statutory right of rescission, allowing a prospective purchaser to rescind the contract of purchase and sale for a period of three business days following final acceptance, for the payment of a rescission fee to the Seller.

The newly built home exemption reduces or eliminates the property transfer tax on qualifying purchases of a principal residence.

• Full exemption: Effective April 1, 2024, the fair market value threshold for a full exemption for newly built homes is increased from $750,000 to $1,100,000.
• Partial exemption: A partial exemption is also available for properties with fair market values just above the threshold. The phase out range is $50,000 above the threshold, with the complete elimination of the exemption at $1,150,000 for qualifying purchasers.

Provides for amendments to the Local Government Act that ensure that municipalities amend their zoning bylaws by June 30, 2024 to permit increased density and relax off-street parking requirements, unless otherwise exempted.

The following acts and regulations support and protect the rights of both landlords and tenants, ensuring that all tenancy business is conducted properly and fairly.

To help more families find a place to live the Province is launching a new short-term rental registry. Registration fees will support the short-term rental enforcement program and help ensure homes are being used for people living and working in B.C.

Hosts, platforms, and strata hotel platforms operating in B.C. must follow a simple online process to register with the Province by May 1, 2025. 

Hosts who do not comply will:

• have their listings taken down, starting May 1, 2025
• have future bookings cancelled, starting June 1, 2025

Under Canada Revenue Agency (CRA) rules, the Principal Residence Exemption generally applies to a property where the dwelling and adjacent land total no more than 0.5 hectares (approximately 1.24 acres). If the total land area exceeds this threshold, the excess portion is not automatically treated as part of the principal residence for tax purposes.

In certain situations, a larger property may still qualify in full if the owner can demonstrate that the additional land was necessary for the use and enjoyment of the residence — for example, where municipal zoning required a minimum lot size greater than 0.5 hectares at the time of purchase, or where access to a public road required additional adjoining land.

If these conditions cannot be demonstrated, only the portion of land up to 0.5 hectares (1.24 acres) is typically considered eligible for the Principal Residence Exemption, and any capital gain attributable to the excess land may be taxable. This is particularly relevant for rural, acreage, and estate properties where lot sizes commonly exceed the standard exemption threshold.

This explanation is provided for general information purposes only and is not legal or tax advice. Property owners should consult a qualified tax professional or CRA guidance directly to understand how the rules apply to their specific situation.