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“What is the Speculation & Vacancy Tax?”
The Speculation & Vacancy Tax is an annual tax based on how owners use residential properties in major urban areas in BC. If you own a home in one of these areas, you are required to do an annual declaration which is due by March 31 of each year. The annual declaration asks that you state how you use the property; i.e. if you live in it, rent it out, is a vacation home, etc. It is also based on ownership as of December 31 each year. The tax rate ranges between 0.5% to 2% depending on your residency and where you pay income tax.
The purpose of this tax is meant to turn empty homes into good housing for people who live and work in BC and also support affordable housing initiatives. Areas currently impacted by this include: Metro Vancouver Regional District, Capital Regional District, Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo and Lantzville.
It is not to be confused with the Vancouver Empty Homes Tax. If you own a home in Vancouver, you are required to declare for both taxes.
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***This blog is for information only and not to be used as tax advice or planning without first seeking professional advice. Information is subject to change without notice.