Understanding British Columbia’s Speculation and Vacancy Tax

If you own residential property in British Columbia but do not reside there for at least six months (180 days) per year, you may be subject to the Speculation and Vacancy Tax (SVT). This tax is intended to reduce housing shortages by discouraging vacant homes and ensuring that foreign owners and satellite families contribute fairly to BC’s tax system.

At Fulcrum Law, we assist property owners in understanding their tax obligations, identifying exemptions, and filing appeals when necessary.

What Is the Speculation and Vacancy Tax?

Introduced in 2018, the SVT applies to residential properties in designated taxable regions of British Columbia, including Metro Vancouver, Victoria, Kelowna, and Nanaimo. The goal is to encourage property owners to rent out vacant homes or use them as primary residences.

Who Needs to Declare?

All property owners in affected areas must file an annual declaration, even if they qualify for an exemption or do not owe any tax. If a property has multiple owners, each owner must submit a separate declaration.

Current Tax Rates (2023):

Owner Type Tax Rate (Percentage of Assessed Property Value)Canadian citizens & permanent residents (non-satellite families)0.5%Foreign owners & satellite families2.0%

Satellite families are property owners who earn more than 50% of their income outside of Canada.

Filing Your Annual Declaration

The declaration is due by March 31 each year. If you owe tax, payment is due by July 2.

Why is the Declaration Important?

Filing your declaration determines:
✅ Whether you qualify for an exemption.
✅ Which tax rate applies to you.
✅ Whether you are eligible for a tax credit.

Failure to declare automatically results in the highest tax rate being applied (2%), even if you are a Canadian citizen or resident.

Common Exemptions

Most BC residents who live in their homes year-round do not have to pay the tax. However, you may also be exempt if:

• The property is your primary residence.
• The property is rented out for at least six months per year (in increments of at least 30 days).
• You or an immediate family member occupy the home.
• The property is newly built and unsold.
• You are experiencing medical hardships or have recently inherited the property.

The specific criteria for exemptions change periodically, so it’s essential to review the latest guidelines or consult a professional.

Can You Appeal the Tax?

If you believe your assessment is incorrect, you may request a formal review. However, you cannot appeal simply because you disagree with the tax or forgot to file your declaration.

To avoid penalties, interest, and legal action, the province recommends paying the tax first, even if you intend to appeal.

How Fulcrum Law Can Assist You

Understanding the Speculation and Vacancy Tax can be challenging, especially if you:

• Own multiple properties.
• Earn income outside Canada.
• Are unsure if you qualify for an exemption.
• Need help filing an appeal.

At Fulcrum Law, we provide:
✔️ Expert legal guidance on tax obligations and exemptions.
✔️ Assistance with filing declarations to ensure compliance.
✔️ Strategic advice on tax planning to minimize your financial burden.
✔️ Representation for appeals and disputes.

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