If you own property in BC, there are two taxes you should be aware of : the Vancouver Empty Homes Tax and the BC Speculation and Vacancy Tax.
The thing is, not everyone realizes that these 2 types of tax aren’t just two names for the same tax. They’re separate, and each one requires property owners to complete an annual declaration.
Vancouver Empty Homes Tax
Tax by: The Government of City of Vancouver
Who should be aware: Owner of Residential Property in City of Vancouver
How Much it Cost: Empty properties are subject to 1% tax of the property’s assessed taxable value.
Why you should care: Declaration is required annually. If your property is empty and you don’t live in it, this tax will apply to you – except you have tenants at least six months of the year.
Exception: There are several exceptions for those who own empty homes (Click here).
BC Speculation & Vacancy Tax
Tax by: The Provincial Government of British Columbia (BC)
Who should be aware: Owner of Residential Property in BC, (including City of Vancouver)
How Much it Cost: 0.5% of the previous year’s assessed property value for Canadian citizens, and 2% for foreign owners and satellite families (households who earn over 50% of their income from outside of Canada).
Why you should care: Explicit Opt-Out is required annually.
Exception: There are also some specific regions that aren’t subject to the tax, (Click here).
What should I do if the Empty Home Tax and
Speculation & Vacancy Tax applies to me?
- Be a landlord and rent your property
- Hire a liciensed Property Manager (e.g. RentalPropertyManagers.ca) to rent your property
- Invite a friend/family member to occupy your property as their principle residence
- Occupy the property as your principle residence for at least 6 months during a year
- Keep your property and pay the Empty Homes Tax
- Always consult your Accountant for professional advices.