The Speculation and Vacancy Tax is an annual tax, which is charged, based on how owners use residential properties in urban areas throughout BC. However, it was introduced in an attempt to turn empty homes into housing for people who live and work in BC. Funds collected through the tax will also support affordable housing initiatives.
Who Needs to File a Speculation Tax Declaration?
Everyone who owns residential real estate, in a taxable region, even if you filed last year and there are no changes to your information, must file a declaration. Each owner must file their own declaration, even if you are spouses.
Click here to view Taxable Regions.
All declarations must be filed by March 31st.
What Is The 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
- A 10% penalty will be imposed if you fail to pay the speculation tax on time
Lastly, the speculation and vacancy tax applies based on ownership as of December 31 each year.
Who Is Exempt From Paying The Speculation & Vacancy Tax?
At this time, some of the exemptions that are available include:
- Principal residence exemptions
- Previous principal residence
- Occupied by a tenant
- Can’t live in the residence because it’s uninhabitable
- Secondary residence close to medical treatment facility
- Just bought or inherited the property
- Separation or divorce
- Bankruptcy
- Recent death of owner
- Property is in a trust created by a will for a minor
- Property is a strata hotel
- Property includes a licensed child daycare
- Property is accessible only by water
- Other restritions include:
- Property has an assessed value under $150,000
- Property includes a building that is divided into four or more apartments for rental and is not stratified
- Property includes a building that is used as a bunkhouse, cookhouse, nursing home, rest home or group home
- Property owner is a registered charity
- Property owner is a co-operative
- Property owner is a municipality
- Property owner is an Indigenous Nation Trustee
- Property owner is a government or related entity
- Property owner is a regional district or similar body, as defined in legislation
How Do You Declare?
Online at: gov.bc.ca/spectax
By Phone at: 1-833-554-2323 toll-free
What Information Do You Need To Declare?
Lastly, the information you need to complete your declaration is:
- The speculation and vacancy tax declaration letter, which has your letter ID and Declaration Code
- Your social insurance number (SIN)
- Your date of birth
