In an effort to turn homes sitting empty into long-term housing options, the Provincial government has implemented a tax on properties within a list of locations with low vacancy rates. The BC Speculation & Vacancy Tax was designed to target primarily foreign owners to ensure that they are fairly contributing to BC’s tax system.
The annual BC Speculation & Vacancy Tax is established on:
- How property owners use their residential property
- The property owner’s residency status
- Where property owners earn and report their income
List of taxable areas
- City of Abbotsford
- City of Chilliwack
- City of Duncan
- City of Kelowna
- City of Nanaimo
- City of West Kelowna
- District of Lantzville
- District of North Cowichan
- District of Squamish
- Town of Ladysmith
- Town of Lake Cowichan
- Village of Lions Bay
Capital Regional District
- Central Saanich
- Colwood
- Esquimalt
- Highlands
- Langford
- Metchosin
- North Saanich
- Oak Bay
- Saanich
- Sidney
- Sooke
- Victoria
- View Royal
Metro Vancouver Regional District
- Anmore
- Belcarra
- Burnaby
- Coquitlam
- Delta
- Langley (City)
- Langley (Township)
- Maple Ridge
- New Westminster
- North Vancouver (City)
- North Vancouver (District)
- Pitt Meadows
- Port Coquitlam
- Port Moody
- Richmond
- Surrey
- University Endowment Lands
- Vancouver
- West Vancouver
- White Rock
New Taxable Areas for the 2023 Tax Year
These areas will be taxed for the first time, once they receive their declaration letter, in January 2024.
- City of Duncan
- District of North Cowichan
- District of Squamish
- Town of Ladysmith
- Town of Lake Cowichan
- Village of Lions Bay
New Taxable Areas for the 2024 Tax Year
These areas will be taxed for the first time, once they receive their declaration letter, in January 2025.
- Vernon, Coldstream
- Penticton, Summerland
- Lake Country, Peachland
- Courtenay, Comox, Cumberland
- Parksville, Qualicum Beach
- Salmon Arm
- Kamloops
What areas and properties are excluded?
Reserve lands, treaty lands and lands of self-governing Indigenous Nations are not part of the taxable areas.
Islands that are accessible only by air or water are not part of the taxable areas, except for Vancouver Island.
Some residential properties are excluded from the speculation and vacancy tax even though they are located within a taxable area. These include residential properties owned by:
- An Indigenous Nation
- Municipalities, regional districts, governments and other public bodies
- Registered charities
- Housing co-ops
- Certain not-for-profit organizations
You can also refer to the legislation for a list of exclusions.
If your residential property is excluded, you only need to complete a declaration if you have received a declaration letter.
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
When does the tax typically have to be paid?
July of the following calendar year. For example; 2023 taxes would be due July 2024.
Who pays the taxes?
Whoever owned the property as of December 31st would be responsible for the taxes.
What time period is the tax formed on?
A calendar year, which would be January 1st- December 31st every year.
What if a property has shared ownership?
Each owner would be responsible for their percentage of the ownership share amount. For example; if person A owns 60% and person B owns 40%, person A would be responsible for 60% of the tax and person B would owe for 40% of the tax.
What if a property is owned by a corporation, trustees or business partners?
The tax rate applied to a corporation, trustee, or business partner will be the highest rate applicable to any of the corporate interest holders, beneficial owners or business partners if they held the residential property individually.
For example; a corporation with four corporate interest holders owns a property in Kelowna that is used for vacation purposes. One of the four corporate interest holders is an American citizen and reports ALL of their income in the USA. The other three corporate interest holders are Canadian citizens and B.C. residents. They report ALL of their income on Canadian income tax returns. In this example, all four corporate interest holders are subject to the highest tax rate applicable, as one owner is an untaxed worldwide earner.
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Speaking to a professional about the speculation and vacancy tax is essential. Please always verify the accuracy of this information through your own due diligence. Nicole McWilliams will assume no responsibility or liability for the accuracy of the information within.
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