Property transfer tax exemptions for First Nations

Provincial property transfer tax is payable when you purchase or gain an interest in a property that is registered with the BC Land Title Office unless it qualifies for an exemption. Exemptions for First Nations are available in certain circumstances, including:

• Transfers of land beneficially owned by First Nations
• Transfers of Treaty Lands of Modern Treaty First Nations (meaning Tsawwassen First Nation, Maa-nulth First Nations and the Tla'amin Nation), including former reserve lands
• Transfers of reserve lands, shíshálh Lands or Westbank Lands
• Transfers to the shíshálh Government District
• Transfers exempt by Order in Council

Transferees are generally required to file a property transfer tax return when registering a taxable transaction, even if that transaction is exempt from property transfer tax. In rare cases, transferees may be exempt from that requirement by a regulation.

If you are not registering an interest in property in the BC Land Title Office, you are not subject to any requirements under the Property Transfer Tax Act. For example, Nisga’a Lands are registered in the Nisga’a Land Title Office.

The information provided here is explanatory. Where there is a conflict between this information and a Provincial or Federal statute, the statute will prevail.

Transfers of land beneficially owned by First Nations

Before May 21, 2024, First Nations defined as Bands under the federal Indian Act could not register land interests in the Provincial land title registry. This meant that First Nations needed to form a proxy, like a corporation or a trust, to acquire property and hold it for their benefit. With the amendments to the Property Law Act and the Land Title Act, First Nations recognized as legal entities under federal law can register land interests in their own names.

Transfers of legal ownership of a property to a First Nation will be exempt from the property transfer tax if the property was already owned by the First Nation before May 21, 2024 and if certain conditions are met. 

This exemption applies to property beneficially owned by a First Nation defined as a Band under the federal Indian Act.

If the property was held in trust, the following conditions must apply:

• The transferor is registered under the Land Title Act as trustee
• The transferor holds the property in trust in accordance with a trust agreement entered into on or before May 21, 2024
• The trust is held for the sole benefit of one or more First Nations
• If held for the benefit of just one First Nation, the transferee is that First Nation. If held for the benefit of more than one First Nation, the transferee is all of those First Nations
• The beneficiary (or beneficiaries) of the trust have not changed since May 21, 2024

If the property was held by a corporation (not in trust), the following conditions must apply:

• The transferor holds a registered interest in this property on May 21, 2024
• The transferor is an eligible corporation and was so on May 21, 2024

Definition of an eligible corporation

If the transferee is one First Nation:

• The corporation cannot be a trustee of any trust unless it is for the benefit of that First Nation
• The corporation cannot be a partner in a partnership
• All of the shares in the corporation are held by the First Nation, or by persons holding them in trust for the First Nation
  • The shares may be held by one or more corporations, or wholly-owned subsidiaries of corporations, if they also meet the eligibility critera

If the transferee is more than one First Nation:

• The corporation cannot be a trustee of any trust unless it is for the benefit of those First Nations
• The corporation cannot be a partner in a partnership
• All of the shares in the corporation are held by those First Nations, or by persons holding them in trust for those First Nations
  • The shares may be held by one or more corporations, or wholly-owned subsidiaries of corporations, if they also meet the eligibility criteria

Treaty Lands of Modern Treaty First Nations

Modern Treaty First Nations include the Tsawwassen First Nation, the Maa-nulth First Nations and the Tla'amin First Nation.

The registration of an interest in property on treaty lands of a Modern Treaty First Nation by a citizen or member of that Modern Treaty First Nation is exempt from property transfer tax in the following situations:

• If it’s the first registration of an interest in a particular parcel of Treaty Lands that has not been previously registered except by the Modern Treaty First Nation or its public institutions
• If the registration occurs within the period after the effective date of a Treaty as specified in the applicable Tax Treatment Agreement

To claim these exemptions, select Exemption 46 – Final/Tax Agreement, Treaty First Nations on the property transfer tax return.

Treaty Lands of a Modern Treaty First Nation that are former reserve lands

Individuals who register interests in property on treaty lands of a Modern Treaty First Nation that are former reserve lands and who qualify for the section 87 tax exemption under the Indian Act or an equivalent provision in a treaty final agreement are exempt from property transfer tax.

Note: The Tsawwassen First Nation Final Agreement, the Maa-nulth First Nations Final Agreement, the Nisga'a Final Agreement and the Tla'amin Final Agreement were amended in 2023 to reinstate or continue the section 87 tax exemption under the Indian Act for eligible individuals (see below). Prior to these amendments, the section 87 tax exemption under the Indian Act or an equivalent provision in a treaty Final Agreement was not applicable on the following Treaty Lands for the following periods of time:

• Former Reserve Lands – Tsawwassen Lands:  May 1, 2017, to March 26, 2023
• Former Reserve Lands – All Maa-nulth First Nations Lands:  May 1, 2019, to June 22, 2023

For more information about this exemption, including how to claim this exemption, contact PTTENQ@gov.bc.ca.

Reserve lands, shíshálh Lands, Westbank Lands

The registration of an interest in property in reserve land, shíshálh lands, or Westbank lands in BC’s Land Title Office by:

• An individual who qualifies for the section 87 tax exemption under the Indian Act, or an equivalent provision in a treaty final agreement
• A Band under the Indian Act, or
• A Self-Governing First Nation under federal legislation

is exempt from property transfer tax. To claim this exemption, your legal professional will apply exemption 50 at the time of registration. 

shíshálh Nation Government District

Transfers to shíshálh Nation Government District qualify for property transfer tax Exemption 20 – Transfer to a Municipality, Regional District, etc.

Transfers exempt by Regulation (Order in Council)

Government may exempt transfers of land from property transfer tax by Regulation, through an Order in Council (OIC).  A copy of the Exemption Regulation must be attached to the application for title registration. In rare circumstances, the Exemption Regulation may also exempt the transferee from the requirement to file a property transfer tax return.

How to file

For information on how to file and pay property transfer tax, see File and pay property transfer tax.

Resources

• Incremental Treaty Agreements
• Reconciliation and other agreements
• Property transfer tax return guide
• Exemption code list
• Calculation examples for the property transfer tax

Tax Treatment Agreements for Modern Treaty Nation Governments:

• Nisga’a Nation Taxation Agreement and Amendment Agreements (No. 1, No. 2, and No. 3)
• Tsawwassen First Nation Tax Treatment Agreement and Amendment Agreements (No. 1 and No. 2)
• Maa-nulth First Nations Tax Treatment Agreement and Amendment Agreements (No. 1 and No. 2)
• Tla’amin Nation Tax Treatment Agreement