What Investors Should Know About The New BC Flipping Tax

About the New BC Flipping Tax

Premier David Eby's NDP government has introduced a proactive measure to address speculation in British Columbia's real estate market with the unveiling of the "BC Home Flipping Tax."

Aimed at those prioritizing profits over people, this initiative seeks to bolster housing supply while generating essential tax revenue. Effective January 1, 2025, the tax will target profits from selling residential homes or residentially zoned land within two years of purchase. It employs a progressive scale, starting at 20% in the initial year and decreasing to 10% after 18 months, ultimately phasing out after two years of ownership.

Key Features of the BC House Flipping Tax

Tax Rates:

  • The tax rate starts at 20% for profits made within the first year of ownership.
  • It gradually decreases to 10% after 18 months.
  • After two years of ownership, the tax reduces to zero.


  • Sales of primary residences within two years can exclude up to $20,000 from taxable income.
  • Exceptions are provided for circumstances such as divorce, death, illness, and relocation for work.

Appeals and Documentation:

  • Procedures for appeal and required documentation are currently under review.
  • Detailed guidelines and necessary forms are anticipated to be available after the legislation's passage.

Effective Date:

  • The tax applies to properties sold from January 1, 2025.
  • It applies retroactively, irrespective of when the property was purchased.

In recent years, British Columbia's real estate market has seen significant growth, attracting investors looking to capitalize on opportunities for profit. However, with the introduction of the new BC flipping tax, investors need to be aware of the implications this may have on their investment strategies.

Understanding the BC Flipping Tax

The BC flipping tax, officially known as the "Speculation and Vacancy Tax," is designed to target properties that are being quickly bought and sold for profit, often referred to as "flipping." Implemented as part of the government's efforts to address housing affordability and speculation in the market, this tax aims to discourage speculative activity and stabilize housing prices.

Who Does It Affect?

Investors and property owners need to be aware of how this tax may impact their investment decisions. The tax applies to residential properties in designated regions of British Columbia, including Metro Vancouver, the Capital Regional District, the Fraser Valley, and certain regions of Vancouver Island. Properties subject to the tax include those that are left vacant or not used as a primary residence for the majority of the year.

Key Considerations for Investors

  1. Tax Rates: The BC flipping tax is levied annually, and the rate varies depending on the owner's residency status and the assessed value of the property. Non-resident owners and satellite families may face higher tax rates compared to British Columbia residents.

  2. Exemptions and Rebates: While the tax may apply to certain properties, there are exemptions and rebates available under specific circumstances. For example, properties used as a primary residence, rented out long-term, or subject to certain rental restrictions may be eligible for exemptions or rebates.

  3. Impact on Investment Strategies: Investors need to evaluate how the BC flipping tax may affect their investment strategies. Those considering short-term flipping or speculative activities may need to reconsider their approach and explore alternative investment options that align with the tax regulations.

  4. Compliance and Reporting Requirements: It is essential for investors to understand their obligations regarding compliance and reporting. Failure to comply with the tax regulations may result in penalties and additional costs, highlighting the importance of staying informed and up-to-date with the requirements.

Seeking Professional Guidance

Given the complexity of the BC flipping tax and its implications for investors, seeking professional guidance from real estate experts, tax advisors, and legal professionals is crucial. These professionals can provide valuable insights, help navigate the tax regulations, and develop investment strategies that optimize returns while ensuring compliance with the law.


The introduction of the BC flipping tax underscores the government's commitment to addressing housing affordability and speculation in the real estate market. Investors need to be aware of the tax implications and adjust their investment strategies accordingly. By staying informed, seeking professional guidance, and understanding their obligations, investors can navigate the changing landscape of the British Columbia real estate market effectively.

Sara Esmi


New Property Transfer Tax exemptions for first-time buyers and new homes in BC

Exciting news for first-time home buyers in Vancouver, BC!

As part of efforts to enhance housing affordability, the Government of British Columbia is implementing three significant changes to the Property Transfer Tax (PTT) framework. These changes, outlined in the 2024 provincial budget, focus on exemptions within the PTT.

Firstly, the threshold for eligibility for the first-time homebuyers’ exemption will rise from a fair market value of $500,000 to $835,000.

Under this adjustment, the initial $500,000 of the property's value will be exempt from the tax. The phase-out range for the full elimination of the exemption will extend to $860,000, while properties valued below $500,000 will enjoy complete exemption. These modifications will take effect on April 1, 2024.

These adjustments aimed at first-time homebuyers are projected to benefit approximately 14,500 individuals, doubling the previous number, resulting in potential savings of up to $8,000 when purchasing their homes.

Additionally, the exemption for newly built homes, intended for purchasers acquiring a new principal residence, will increase from $750,000 to $1.1 million in fair market value. Properties valued between $1.1 million and $1.15 million will experience a phase-out range for the exemption. This change will also come into effect on April 1, 2024.

Furthermore, a novel PTT exemption will be introduced specifically for the acquisition of new qualifying secured purpose-built rental housing buildings. These buildings must consist of at least four non-stratified apartment units and be designated for rentals for a minimum of 10 years. Additionally, all residential units within the building must be solely used for rental purposes. This unique PTT exemption will be applicable to transactions involving such buildings between January 1, 2025, and December 30, 2030. As homeownership remains unattainable for many due to soaring property prices, this policy aims to stimulate the development of more "missing middle" rental housing units.

The provincial government anticipates these various exemptions will reduce transaction costs by over $100 million per year.

Sara Esmi

Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.