What is the Property Transfer Tax or PTT?

When you purchase or gain an interest in property in B.C. that is registered at the Land Title Office, you’re responsible for paying property transfer tax. It is a payment made to the government for transferring property from the seller to the buyer and is a complex process that should be calculated by a professional. Since it is not imposed in every Province, you will want to take advantage of your REALTORS® expertise.

Taxable transactions include:

• Transfer of fee simple
• Right to purchase or agreement for sale
• Lease or lease modification agreements
• Life estate
• Foreclosure
• Crown Grant
• Escheat, forfeiture or quit claim
• Transfer because of corporate reorganization

You pay the tax based on the fair market value (usually the negotiated purchase price) of the property at the date of registration, unless you qualify for an exemption.

If you’re a foreign national, foreign corporation or taxable trustee, you also pay the additional property transfer tax of 20% (Foreign Buyers Tax) on residential property transfers within specified areas of B.C.

Property transfer tax should not be confused with your “annual property taxes”. Annual property taxes are paid yearly for each property you own or have a registered interest in to fund services in your area.

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