Guide · Buying
Property Transfer Tax and share sales, in plain words
Property Transfer Tax is one of the biggest closing costs on a BC commercial purchase, and it’s a big reason some deals are done as share sales. The general rate is 1% on the first $200,000, 2% up to $2 million and 3% above that, per the BC government.
General information, not tax or legal advice. The numbers here are illustrative. Talk to your lawyer and accountant before you act on them, and check the current rules, because BC is changing how PTT applies to share sales.
How PTT works on commercial property
Property Transfer Tax is paid by the buyer when a property’s title is registered. For commercial property, as of 2026, it’s:
- 1% on the first $200,000
- 2% on the portion from $200,000 to $2,000,000
- 3% on the portion above $2,000,000
The additional 2% that applies to residential property above $3 million doesn’t apply to commercial property.
A $3 million example
| Portion | Rate | Tax |
|---|---|---|
| First $200,000 | 1% | $2,000 |
| $200,000 to $2,000,000 | 2% | $36,000 |
| $2,000,000 to $3,000,000 | 3% | $30,000 |
| Total | $68,000 |
That’s on top of the price, and buyers often forget to budget for it.
Why share sales come up
If a property is owned by a company, a buyer can buy the shares of the company instead of the property. The registered owner on title doesn’t change, so PTT usually isn’t triggered. On a $10 million building that can save around $278,000.
The catch
- The buyer inherits the company: old debts, lawsuits, tax issues and contracts. Due diligence is heavier and the buyer will want strong indemnities.
- The buyer takes over the company’s old tax cost of the property, which can mean more tax when it’s sold later.
- That’s why sellers often prefer share sales and buyers often negotiate the price down for one.
Who decides
Your lawyer and accountant. My job is to flag it early, help you find advisers who do corporate deals if you don’t have them, and keep the deal timeline in step. Rules change, so confirm current rates and exemptions with them before you rely on anything here.
Questions people ask
How much is PTT on a $3 million commercial property in BC?
About $68,000 as of 2026: 1% on the first $200,000, 2% on the next $1.8 million and 3% on the last $1 million. Confirm current rates with your lawyer or accountant.
Do share purchases avoid Property Transfer Tax in BC?
Usually, because the registered owner on title doesn’t change. But the buyer takes on the company’s history and tax position, so it needs careful legal and tax advice.
Go deeper
If you’re looking for more details
PTT rates in BC
| Portion of fair market value | Rate |
|---|---|
| First $200,000 | 1% |
| $200,000 to $2,000,000 | 2% |
| Over $2,000,000 | 3% |
| Residential value over $3,000,000 | Additional 2% |
Foreign entities and taxable trustees can owe an additional 20% on residential property in specified areas. Rates as published by the Province. Check them before you buy.
Run the numbers
- BC Property Transfer Tax calculatorProperty transfer tax in BC is 1% on the first $200,000, 2% up to $2 million and 3% above that, plus another 2% on residential value over $3 million.
- Business sale proceedsStart with the price, then subtract the broker fee, legal and accounting costs, debts paid out at closing, and tax.
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