What is the speculation and vacancy tax?
The speculation and vacancy tax is a new annual tax that will be paid by certain residential property owners.
Who does it affect?
If your property resides in one of these taxable regions defined by the BC government, this may affect you. This list is not exhaustive.
- Capital Regional District
- Metro Vancouver Regional District
- City of Abbotsford
- District of Mission
- City of Chilliwack
- City of Kelowna
- City of West Kelowna
- City of Nanaimo
- District of Lantzville
How does it work?
If you own property in a taxable region on December 31, you will be completing a declaration to determine if you are exempt from the speculation and vacancy tax. The declaration period will open in January 2019 and your declaration is due on March 31, 2019.
Who is exempt?
You may qualify for an exemption if you live in your home, if your home is being used as a long-term rental, or if you meet another exemption specified by the BC government.
For 2018, your long-term rental may qualify for an exemption if it is rented for at least three months during the year in increments of 30 days or more.
For 2019, your long-term rental may qualify for an exemption if it is rented for at least six months during the year in increments of 30 days or more.
How is the tax rate calculated?
As of now, the following rates have been declared:
- 0.5% of property value
- 2% of property value (foreign investors and satellite families)
- 0.5% of property value (Canadian citizens and permanent residents)
If you are not eligible for an exemption, you may be eligible for a tax credit. Come have a chat with us and we can discuss your specific situation.