Additional Property Transfer Tax for Foreign Entities & Taxable Trustees

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 transfer 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% acquired interest.

You or your legal professional must also file the Additional Property Transfer Tax Return (FIN 532) (PDF) with the Property Transfer Tax Return, even if you or the property transfer qualifies for an exemption.

All additional property transfer tax returns will be reviewed and verified. Willful tax avoidance may be subject to penalties.

Tax Amount and Specified B.C. Areas

If the property transfer is registered on or before February 20, 2018 and is within the Metro Vancouver Regional District, the tax amount is 15% of the fair market value of your proportionate share.

If the property transfer is registered on or after February 21, 2018 and is within the following areas, the tax amount is 20% of the fair market value of your proportionate share:

The additional property transfer tax doesn’t apply to properties located on Tsawwassen First Nation lands.

Transitional Rules

If the property is located in the Capital Regional District, Fraser Valley Regional District, Regional District of Central Okanagan or Nanaimo Regional District and the property transfer is registered on or after February 21, 2018, there are two instances where you don’t have to pay the additional property transfer tax:

  1. You don’t have to pay the additional property transfer tax if the registration occurs before or on May 18, 2018 and the property transfer is subject to a written agreement dated on or before February 20, 2018. Otherwise you will have to pay the additional property transfer tax.

    Note: If the written agreement is assigned to a foreign entity or taxable trustee on or after February 21, 2018, the additional property transfer tax must be paid.

  2. You don’t have to pay the additional property transfer tax and your property can be registered at any time if:

    • The property transfer is subject to a court order dated on or before February 20, 2018

    • The property transfer is subject to an Order Nisi of Foreclosure dated on or before February 20, 2018

    • The property transfer is subject to a separation agreement which was signed on or before February 20, 2018

    • The property transfer is from the personal representative of a deceased’s estate to the beneficiary and the death of the deceased occurred on or before February 20, 2018

    • The property transfer is to a surviving joint tenant when the death of the deceased occurred on or before February 20, 2018

Tax on Residential Portion of Property

The additional property transfer tax applies on only the residential portion of a property located in the specified areas of B.C. There are three types of properties where this may occur:

  • Property classified as residential (class 1) by BC Assessment. You pay the additional tax based on the fair market value of the full property.

  • Property classified as farm land by BC Assessment that includes a residential improvement, such as a building used as a farmer’s home. You pay the additional tax on the value of the residential improvement plus 0.5 hectares of land.

  • Property classified as commercial by BC Assessment that includes a residential improvement (class 1), such as a condo in a building with commercial space. You pay the additional tax on the value of the residential improvement.

Exemptions

In some circumstances, you may be exempt from the additional property transfer tax. Learn more if you're:

The additional property transfer tax doesn’t apply to registration of trusts that are mutual fund trusts, real estate investment trusts or specified investment flow-through trusts.

Exempt from property transfer tax

Generally, if you're exempt from property transfer tax, you're also exempt from the additional property transfer tax.

The exemption doesn’t apply to the additional property transfer tax in the following situations:

  • A transfer resulting from an amalgamation
  • A transfer to a surviving joint tenant
  • A transfer where the transferee is or becomes a trustee in relation to the property, even if the trust does not change

B.C. Provincial Nominees

If you're a foreign national individual who receives confirmation under the B.C. Provincial Nominee Program, you do not pay the additional property transfer tax if you claim the exemption.

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

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.

To claim the exemption, your legal professional must send a copy of your B.C. Provincial Nominee confirmation letter together with the Property Transfer Tax Return and the Additional Property Transfer Tax Return (FIN 532) (PDF).

If you were confirmed as a B.C. Provincial Nominee between August 2, 2016 and March 17, 2017, you may be eligible for a refund of the additional property transfer tax you paid.

Note that a B.C. Provincial Nominee Candidate in the entrepreneurial immigration stream to permanent residency is not the same as a Confirmed BC Provincial Nominee. A nominee candidate has to pay the additional transfer tax.

Canadian-controlled Limited Partnerships

If you’re a general partner who’s a Canadian citizen or permanent resident and you’re acquiring a property on behalf of a qualifying Canadian-controlled limited partnership, you may be exempt from paying the additional property transfer tax.

Note: For the purpose of this exemption, “general partner” and “limited partner” have the same meaning as in Part 3 of the Partnership Act

To qualify for this exemption, the property (land and improvement) transfer must be registered at the Land Title Office on or after June 1, 2020 and: 

  • Each general partner must be a Canadian citizen, a permanent resident of Canada or a corporation that’s not a foreign corporation

  • Each general partner and each limited partner must be a resident of Canada for income tax purposes throughout the taxation year in which the transfer occurs

  • The combined interest of all foreign limited partners in the limited partnership must account for less than half of the entitlement of all partners to share in the profits of the limited partnership

To claim the exemption:

  • If you're filing using the web version of the Property Transfer Tax return, select “Yes” to the question “Is the transferee claiming the Canadian-controlled limited partnership exemption?”
  • If you're filing using the PDF version of the Property Transfer Tax return, send an email to attenq@gov.bc.ca with the general partner’s name, PID, and the date the transaction was registered at the land title office