What You Need to Know About The Speculation and Vacancy Tax

What You Need to Know About The Speculation and Vacancy Tax

The speculation and vacancy tax is a key measure in tackling the housing crisis in major urban centres in British Columbia, where home prices and rents have skyrocketed out of reach for many British Columbians.

The provincial government is taking action because people who live and work in B.C. deserve an affordable place to call home.

This new annual tax is designed to:

  • 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 of B.C. must complete an annual declaration. Over 99% of British Columbians are estimated to be exempt from the tax.

How to Exempt Yourself

To claim your exemption, you must register your property by March 31, 2019 – and it’s easy to do, either by phone or online. The information you’ll need to register your property declaration will be mailed by mid-February to all owners of residential property within the taxable regions. 

Follow these steps to claim your exemption:

  1. Read declaration letter
  2. Keep your letter ID and declaration code from the letter handy – you’ll need them to complete your declaration
  3. Have your social insurance number on hand – you’ll need this to verify your identity and complete your declaration
  4. Register your declaration – the easiest way to do this is by visiting gov.bc.ca/spectax or by calling 1-833-554-2323

Please note that if your property has more than one owner, even if the other owner is your spouse, a separate declaration must be made for each owner. 

How the Tax Will Be Charged If You’re Not Exempt

The speculation and vacancy tax rate varies depending on the owner’s tax residency and whether the owner is a Canadian citizen or permanent resident of Canada, or a member of a satellite family.

By levying the highest tax rate on foreign owners and satellite families (those who earn a majority of income outside the province and pay little to no income tax in B.C.), the speculation and vacancy tax is a way to make sure these property owners are paying their fair share in taxes.

The speculation and vacancy tax will be applied based on ownership as of December 31 each year.

Contact us to find out more about the speculation and vacancy tax.

Schreder Brothers

The Schreder Brothers provide a value-added approach ensuring their client’s real estate venture is handled in the most profitable manner by involving team players with a wealth of knowledge spanning across many areas of real estate.

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