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Victoria Buyer Property Tax Breakdown

Geoff McLean

If you ask anyone connected to the Victoria, BC real estate market, or any of the thousands of people who have listed their Victoria properties for sa...

If you ask anyone connected to the Victoria, BC real estate market, or any of the thousands of people who have listed their Victoria properties for sa...

Aug 18 4 minutes read

Property Transfer Tax

1% on the first $200,000

2% on the next $1,800,000 ($200K to $2 MILL)

3% on the portion over $2,000,000 to $3,000,000

5% on any portion over $3,000,000

Exemptions:

- First Time Buyers – if purchase price is $500K or below. *Partial exemptions

applicable on a sliding scale up to $525K

- New Construction – if purchase price is $750K or below. *Partial exemptions

applicable on a sliding scale up to $800K


CMHC Fees

- Determined on a 100% scale from 5% to 20% down. With 20% down you don’t

pay the fee but with 5% down you pay the entire fee. *Can be rolled into your

mortgage.


GST

- When purchasing new builds, strata title lots, land that has been subdivided into

more than 2 new parcels, leasehold properties, float homes or property being sold in

the course of business, GST can be applicable.

- 5% on top of the purchase price.

- Rebate that can be obtained, depending if the purchase price is below $450K.


Speculation Tax

Rates:

- Varies depending on owner’s tax residency, whether the owner is a Canadian

citizen or permanent resident of Canada, or a satellite family.

- Applies based on ownership as of December 31st each year.

- Speculation and vacancy tax year is the same as a calendar year.

- Tax levied on December 31st is due the following July.

2018 Tax Rate:

- 0.5% of the property’s assessed value for all properties subject to the tax.

2019 Tax Rate:

- 2% for foreign owners and satellite families

- 0.5% for Canadian citizens or permanent residents of Canada who are not

members of a satellite family.

Exemptions:

- To claim an exemption, you must register the property by March 31, 2019.

Information needed to register will be mailed by mid-February to all owners of

residential property within the taxable regions.

- ** If the property has more than one owner, even if the other owner is your spouse,

a separate declaration must be made for each owner.

Individual Exemptions

1.Principal residence exemptions

2.Occupied by a tenant

3.Can’t live in the residence because it’s uninhabitable

4.Secondary residence close to medical treatment facility

5.Just bought or inherited the property

6. Separation or divorce

7. Bankruptcy

8. Recent death of owner

9. Property is in a trust created by a will for a minor

10. Property has rental restrictions

11. Property is a strata hotel

12. Property includes a licensed child daycare

13. No residence on the property

14. Other exclusions from the tax


Land Under Development Exemptions

- Owners of property that is under construction are exempt if reasonable steps are

taken without undue delay to develop or renovate the property.

- To be eligible the owner must be carrying out eligible building activity.

1. Construction or renovation

2. Heritage conservation

3. Phased developments

4. Vacant new inventory


Corporations, Trustees & Partners Exemptions

- To be eligible for a principal residence exemption, a corporation, trustee or partner

must take account of its corporate interest holders, the beneficial owners or

partnership interest holders.

- Eligibility for an exemption depends on whether the corporate interest holders,

beneficial owners or partnership interest holders all meet the requirements that

individual owners would need to meet when claiming the principal residence

exemption

• Corporate interest holders are individuals who have significant ownership

and/or control of the corporation

• Beneficial owners are individuals who have a direct or indirect beneficial

interest in a residential property

• Partnership interest holders are individuals who have an interest in the

partnership’s residential property as a partner or as a corporate interest

holder of a partner that is a corporation

. They must be:

• Canadian citizens or permanent residents of Canada

• Resident in B.C. for income tax purposes, and

• Not members of a satellite family

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