BC's Speculation & Vacancy Tax

May 30, 2019

 

B.C.'s Speculation & Vacancy Tax was introduced by the B.C. Government in 2018 in order to help take action against unaffordable housing and rental prices in major urban cities across B.C. According to the government, more than 99% of British Colombians are estimated to be exempt from the tax. 

 

Whether you agree or disagree with the tax, here is what it is designed to do: 

  • Target foreign and domestic speculators who own residences in B.C. but don't pay taxes here

  • Turn empty homes into good housing for people

  • Raise revenue that will directly support affordable housing

All owners of residential property in the designated taxable regions must complete an annual declaration. Click here to see where those regions are.

 

The tax rate is as follows: 

  • 0.5% of the property's assessed value for all properties subject to the tax

For 2019 and subsequent years, the tax rate is: 

  • 2% for foreign owners an satellite families

  • 0.5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family. 

The following are all reasons someone may be exempt from paying the speculation and vacancy tax: 

  1. Principal residence exemptions

  2. Occupied by a tenant 

  3. Can't live in the residence because it is uninhabitable 

  4. Secondary residence close to medical treatment facility 

  5. Just bought or inherited the property

  6. Separation or divorce 

  7. Bankruptcy

  8. Recent death of owner

  9. Property is in a trust created by a will for a minor

  10. Property has a rental restrictions 

  11. Property is a strata hotel

  12. Property includes a licensed child daycare

  13. No residence on the property 

To view all the exemptions, click on the following link to be taken to the governments site for the BC Speculation & Vacancy Tax. 

 

Click here to reach out to a member of our team today if you have any questions on the following tax! 

 

 

 

 

 

 

 

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