Newly Built Home Exemption From Property Transfer Tax in BC

Buying a brand-new home in British Columbia usually means paying property transfer tax (PTT) on the purchase, just as with a resale. The province has an exemption for newly built homes, and it can save a meaningful amount of tax if you qualify.

This article explains the price limits, who can claim, what the occupancy rule asks of you and some common special situations. The rules depend on the registration date and your own circumstances, so treat this as a starting point and confirm your details with a lawyer or the ministry.

This article covers the law of British Columbia.

Who can claim the newly built home exemption

The exemption is for a Canadian citizen or permanent resident who buys a first-registered, newly built home as their principal residence in B.C. You will need your SIN or proof of permanent residency.

The home must be a first registration with a completed improvement, registered after February 16, 2016. Foreign entities and taxable trustees are not eligible.

One exception: a buyer who is not yet a citizen or permanent resident, but becomes one within 12 months of registration, may apply for a newly built home refund.

Price limits for the exemption

The exemption depends on the fair market value (FMV) of the home. The limits rose on April 1, 2024, so the registration date of your title matters.

FMV is the price a willing buyer would pay a willing seller in the open market on the registration date. For an open-market sale registered within a few months of the contract, the purchase price is generally a good indicator. If the sale was not an open-market sale, or values or the property's condition changed, the price may not equal FMV.

The occupancy rule

You must move in within 92 days of registration and live in the home as your principal residence for the rest of the first year.

If you move out early, you repay part of the exemption based on the number of days you were away. If the owner dies, or the home is transferred under a separation agreement or a Family Law Act order during the first year, the full exemption is kept.

Special situations

• Vacant land: if you paid PTT on vacant land and then built a home, a refund may be available if the land and home together have an FMV of $1,100,000 or less for registrations on or after April 1, 2024, or $750,000 or less before that.
• Co-owners: if only some purchasers qualify, the exemption is the available exemption multiplied by the eligible percentage.
• Example of co-owners: an $835,000 new home bought by two joint tenants, with one qualifying, has tax before exemption of $14,700, an exemption of $7,350 and net tax of $7,350.

If you are buying with someone who does not qualify, such as a foreign entity or a taxable trustee, ask early how the exemption will be split.

What to do next

The exemption is claimed on the property transfer tax return using an exemption code, and code 49 is the newly built home exemption. If an eligible exemption was not claimed at registration, you can seek a refund using form FIN 272, online or by email to pttenq@gov.bc.ca. For this exemption, that is after the first anniversary of registration and within 18 months of registration.

• Confirm the home is a first-registered, newly built home.
• Check the expected FMV against the caps for your registration date.
• Confirm every buyer's citizenship or permanent residency status.
• Plan to move in within 92 days and stay for the first year.
• Ask whoever files your return to claim the exemption at registration.

Frequently asked questions