Property Transfer Tax Exemptions for Purpose-Built Rentals in BC

By encouraging developers to create long-term rental housing, the province of BC aims to meet the growing demand for rental units and creating sustainable housing options for its residents.

Purpose Built Rental buildings are non-stratified properties held as rentals for at least 10 years.

Eligibility:

• The building must have at least 4 separate apartments at the time of registration

• It must be newly built as a rental property and entirely used for rental purposes.

• The property must not be a resale or previously occupied as a residence.

General Property Transfer Tax Exemption

• Exemption from the general property transfer tax for purchases of new qualifying purpose-built rental buildings.

• Applies to transactions between January 1, 2025 and December 31, 2030.

• This exemption was announced in the 2024 budget.

Exemption On Amounts over $3,000,000

• Exemption from the further 2% property transfer tax on the amount of the residential property value that exceeds $3,000,000.

• Applies to transactions after January 1, 2024

• This exemption was announced in Budget 2023.

Claiming the Exemption

• If your property qualifies, the exemption can be claimed using the Property Transfer Tax Return.

While, you have the option of braving the return alone, we highly recommend consulting an indirect tax advisor for more details and for your own sanity.

Whether you are looking to expand your portfolio, tackle a new project, or needing a referral to indirect tax advisors, we are always here to help. Drop us a message at hello@driftpm.ca