Craig Johnston Personal Real Estate Corporation · Brokerage: Royal LePage Elite West
Investor · Structure
Some BC real estate investors hold property through a corporation rather than personally. The decision affects taxes, liability, financing, and the BC Property Transfer Tax. Here's the framework.
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What should you know about buying real estate with a corporate structure in BC?
A corporation pays the same property transfer tax rates but cannot claim the first-time buyer exemption or, when it sells, the principal residence exemption. It must file a public transparency report and an annual speculation and vacancy tax declaration, and rental income rarely gets the small-business rate. Nothing here is tax or legal advice — model it with your accountant and lawyer first.
Verified · Investor · Structure
Property Transfer Tax
A corporation pays PTT on the same schedule as an individual — 1% on the first $200,000, 2% to $2 million, 3% above that, plus an extra 2% on the residential portion over $3 million. The difference is exemptions: BC's first-time home buyers' exemption is for individuals only, so a corporate purchase usually pays the full amount. Have your lawyer confirm how your structure is treated.
Foreign buyer additional PTT (20%)
A 20% additional PTT applies when a foreign entity — including a foreign corporation — or a taxable trustee acquires residential property anywhere in Metro Vancouver, including Coquitlam, Port Coquitlam, Port Moody, Anmore and Belcarra. It is calculated on the fair market value of that buyer's share.
Income tax treatment
Rental income from a home or condo held in a corporation is usually treated as income from a 'specified investment business', which does not qualify for the small business deduction unless the business has more than five full-time employees. That means it is generally taxed at higher corporate investment rates, with part refundable when the company pays dividends. Model this with your accountant before you buy.
Capital gains in a corporation
Capital gains inside a private corporation are taxed differently from personal gains: the taxable portion is investment income, part of the tax can be refunded when the company pays dividends, and the non-taxable portion can generally be paid out through the capital dividend account. The principal residence exemption is not available. Talk to a tax accountant.
Liability protection
Corporate ownership can provide some liability separation from personal assets.
Mortgage financing
Lenders set their own rules for corporate borrowers — documents, rates, down payment and whether shareholders must personally guarantee the loan all vary. Get a written answer from your lender or mortgage broker before you write an offer in the company's name.
BC Speculation Tax
Corporations must file an SVT declaration every year by March 31 for residential property in a taxable area — which includes Coquitlam, Port Coquitlam, Port Moody, Anmore and Belcarra. The corporation's rate is the highest rate that would apply to any of its corporate interest holders: for the 2026 tax year, 1% for Canadian citizens and permanent residents and 3% for foreign owners and untaxed worldwide earners, unless an exemption applies.
| Item | Personal name | Corporation |
|---|---|---|
| Property transfer tax rates | Standard BC schedule | Same standard BC schedule |
| First-time buyer PTT exemption | Available to eligible individuals | Not available |
| 20% additional PTT (Metro Vancouver) | Applies only to foreign nationals and taxable trustees | Applies if the corporation is a foreign corporation |
| Principal residence exemption (income tax) | Available on a designated principal residence | Not available |
| Speculation and vacancy tax | Annual declaration; rate based on the owner's status | Annual declaration; highest rate of any corporate interest holder |
| Land Owner Transparency Registry | Transparency declaration on purchase | Declaration plus a publicly searchable transparency report on its interest holders |
| BC home flipping tax | Applies on sales within 730 days; up to $20,000 primary-residence deduction | Applies on sales within 730 days |
| Financing | Standard residential mortgage options | Lender-specific; terms and guarantees vary |
| Rental income tax | Taxed at your personal marginal rate | Usually specified investment business — no small business deduction |
Sources: gov.bc.ca (property transfer tax, first-time home buyers' exemption, additional PTT, speculation and vacancy tax, home flipping tax), LTSA Land Owner Transparency Registry, CRA. General information only — not tax or legal advice; speak to your accountant and lawyer.
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Holding real estate in a company can make sense in some situations and add needless cost in others. Six factors to weigh before you decide.
Factor
Owning through a corporation changes how income, gains and losses are taxed, and it interacts with your personal tax picture in ways that are rarely simple. This is the first thing to model with an accountant, because the wrong assumption here can quietly undo the entire rationale for using a company at all.
Factor
Lenders often treat corporate purchases differently from personal ones, sometimes with different rates, terms or documentation. Confirm how a corporate buyer will be financed before you rely on the plan.
Factor
The PTT rates are the same, but the first-time home buyers' exemption is for individuals only, and a corporation that is a foreign entity pays the 20% additional PTT in Metro Vancouver. Separately, until January 1, 2027, federal law bars non-Canadians — including privately held Canadian corporations controlled by non-Canadians — from buying most residential property in areas like Metro Vancouver, which includes the Tri-Cities. Check your structure with a lawyer before you write an offer.
Factor
Corporate ownership can offer some liability separation, which is part of the appeal for some buyers. It does not offer much privacy in BC: a corporation buying land must file a transparency report naming the individuals behind it with the Land Owner Transparency Registry, which the public can search for a fee. Whether those benefits are meaningful for you depends on your circumstances.
Factor
A corporation carries setup and yearly accounting, filing and administrative costs. For a single modest property, that overhead can quietly outweigh the benefits.
Factor
The right answer here is genuinely individual. A short session with an accountant and a lawyer before you buy will usually save far more than it costs.
The honest summary is that there is no universal answer: buying through a corporation is a powerful tool in the right situation and an expensive complication in the wrong one. The deciding factors — your tax position, your financing, your liability concerns and your appetite for ongoing administration — are personal, which is exactly why this is a decision to make with professional advice rather than a rule of thumb.
One caveat worth repeating: whether a corporate purchase helps or hurts is genuinely individual, turning on your tax position, your financing, your liability concerns and how much administrative overhead you are willing to carry. Nothing here is legal, tax or accounting advice. The sensible sequence is to model the specific purchase with an accountant and review the structure with a lawyer before you commit, so the decision is built on your real numbers rather than a general rule.
No. BC's first-time home buyers' exemption is available to individuals only — corporations are excluded — so a company buying a home anywhere in BC pays property transfer tax at the full rates: 1% on the first $200,000, 2% up to $2 million, 3% above that, and an extra 2% on the residential portion over $3 million. The newly built home exemption is also built around individual Canadian citizens and permanent residents. If you would qualify personally, have your accountant compare buying personally with buying corporately before you choose. See my property transfer tax guide.
Yes — if a corporation is the buyer, your lawyer or notary must file a transparency report with the Land Owner Transparency Registry when the purchase is registered. Since November 30, 2020, every transferee registering an interest in BC land files a transparency declaration, and a corporation (a "reporting body") also files a report identifying the individuals who hold an indirect interest through it. The registry has been publicly searchable since April 30, 2021, so holding property in a company offers little anonymity in BC. Gather your shareholder and director details early so closing is not delayed.
A corporation must file its own speculation and vacancy tax declaration every year by March 31, and its rate is the highest rate that would apply to any of its corporate interest holders if they owned the property personally. For the 2026 tax year that is 1% for Canadian citizens and permanent residents and 3% for foreign owners and untaxed worldwide earners. The tax applies in all five Tri-Cities-area communities — Coquitlam, Port Coquitlam, Port Moody, Anmore and Belcarra — so a company-owned home anywhere here needs a declaration even when an exemption, such as qualifying long-term rental, applies.
Not under income tax rules. The principal residence exemption is designated by an individual (or certain personal trusts) on CRA's form T2091(IND) — there is no equivalent designation for a corporation, so the company is generally taxed on the gain even if you lived there. This trips people up because the BC speculation and vacancy tax does allow a principal-residence exemption for a corporation when the home is a corporate interest holder's principal residence and all interest holders meet the residency tests. Two different taxes, two different answers — ask your accountant before putting a family home in a company.
Yes. BC's home flipping tax, in effect since January 1, 2025, applies to any "person", which the province defines to include an individual, corporation, partnership or trust. A corporation that sells residential property within 730 days of buying it can owe up to 20% of the net taxable income on a sale within the first 365 days, declining to zero at 730 days. The federal flipped-property rule also applies to all taxpayers, including corporations. If your plan is a short hold, build both into your numbers before you buy.
Usually not. CRA treats a business whose principal purpose is earning rent as a "specified investment business", and the small business deduction is not available to it unless the corporation employs more than five full-time employees in that business throughout the year. A company renting out a condo or townhouse to a tenant is generally taxed at higher investment-income rates, with part of that tax refundable when the company pays dividends. This is a common reason a corporate structure costs more than investors expect. If you want to compare a specific property both ways, book a strategy call and bring your accountant's numbers.
Not for 2025 or later. The federal government eliminated the Underused Housing Tax starting with the 2025 calendar year — no tax is payable and no return is required for 2025 onward — and that change became law when the Budget 2025 Implementation Act, No. 1 received Royal Assent on March 26, 2026. Earlier years are different: if your corporation owned residential property in 2022 to 2024, check with your accountant whether a return was required for those years, since that depended on who owned and controlled the corporation.
Often not, for now. Until January 1, 2027, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act bars privately held Canadian corporations controlled by a non-Canadian from buying most residential property in census metropolitan areas like Metro Vancouver. Control includes owning 10% or more of the equity value. Exceptions exist, such as vacant land zoned residential and purchases for development. Even where a purchase is allowed, a company that is a foreign entity under BC rules pays the 20% additional property transfer tax. Have a lawyer review the share structure before you write an offer.
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Buying in a company’s name changes the tax, the financing and the paperwork. I’m not your accountant or lawyer, so this is the order I work in alongside them.
Before we look at homes, your accountant confirms whether a corporation makes sense for you, and your lawyer confirms how title will be held and what filings apply.
Corporate mortgages are underwritten differently. We get the lender’s terms, any personal guarantee and the down payment requirement in writing before you write an offer.
The buyer is named as the corporation, with subjects that give your lender, lawyer and accountant time to sign off.
Your lawyer files the property transfer tax return and the Land Owner Transparency Registry report with the transfer. I keep every date on track through completion.
Want to see how complex purchases have played out? The case studies walk through Tri-Cities files from start to finish. Read the Tri-Cities case studies →
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“Craig is a true professional and I would highly recommend him to anyone looking to buy or sell their home. His approach is clear, data-driven and resulted in multiple offers for our sale.”Robert Shin
“Craig Johnston recently sold my townhouse in West Vancouver in less than 6 days for over asking price!!!!! Craig is one of the most prolific and highly motivated realtors I have seen in the Realty business, and I have extensive experience buying and selling properties of all sorts.”Riverplate Equities
“We had a fantastic experience working with Craig on the purchase of our first home in Coquitlam. He was incredibly friendly and responsive, always quick to answer our messages and questions. Throughout the process, he took the time to walk us through each step so my partner and I always knew exactly what was going on and what to expect next. Craig also gave us honest, helpful opinions on properties we were considering, which really helped guide us toward a place we love. On top of that, he connected us with a great broker and lawyer, making the whole process feel seamless. We're so happy in our new home and couldn't have done it without him. Highly recommend Craig to anyone buying a home!”Rohit & Georgie
I work with buyers across Metro Vancouver, with a focus on Coquitlam and the Tri-Cities. A 20-minute strategy call covers budget, neighbourhoods, timing and the questions specific to your situation — and ends with a written one-page plan. No pressure, no obligation.
4.9 across 38+ Google reviews Earned on a Top 1% Team — Greater Vancouver REALTORS®, 2023–2025 Tri-Cities resident 47+ yearsOr call direct: 604-202-6092
