Speculation and Vacancy Tax

The Speculation and Vacancy Tax is an annual provincial tax imposed on owners of residential property in 59 designated BC communities who do not occupy their home as a principal residence or rent it out for a qualifying period. It is administered by the BC Ministry of Finance and is distinct from municipal empty-homes taxes such as Vancouver's Empty Homes Tax. The tax is designed to encourage owners to make residential properties available for use rather than leaving them vacant.

As of the 2026 tax year, the SVT applies to residential properties in 59 designated communities across British Columbia, including areas in Metro Vancouver, the Fraser Valley, the Capital Regional District, Kelowna, West Kelowna, Nanaimo, Lantzville, and several other municipalities. Owners should verify whether their specific property's municipality is on the current designated-areas list published by the BC Ministry of Finance, as the list of communities has expanded over time.

For the 2026 tax year, as announced in BC Budget 2026, the SVT rate is 3% of the property's assessed value for foreign owners and untaxed worldwide earners, and 1% for BC residents and Canadian citizens or permanent residents. These rates represent an increase from prior years for the foreign-owner category. Owners should confirm current rates with the BC Ministry of Finance, as rates are subject to legislative change.

Yes. Under changes announced in BC Budget 2026, the SVT rate for foreign owners and untaxed worldwide earners will increase from 3% to 4% for the 2027 tax year. The rate for BC residents and Canadian citizens or permanent residents is scheduled to remain at 1% for 2027. Owners with affected properties should monitor BC Ministry of Finance guidance for any further legislative updates.

Property owners subject to the SVT must file their annual declaration with the BC Ministry of Finance by March 31 each year to confirm their eligibility for an exemption or their liability for the tax. Any SVT owing is due on the first business day of July of that year. Failure to file a declaration by the deadline can result in the owner being assessed at the highest applicable tax rate.

A range of exemptions may be available to property owners, including an exemption for properties used as a principal residence by the owner or a qualifying occupant, a rental exemption where the property is rented to a tenant for a minimum qualifying period, and exemptions for certain life circumstances such as the death of an owner, significant renovations, or hardship. Specific exemption criteria are set out in the Speculation and Vacancy Tax Act and owners should consult the BC Ministry of Finance for the full list of qualifying conditions applicable to their situation.

No. BC Budget 2026 announced that owners cannot appeal SVT assessments for the 2023, 2024, or 2025 tax years where a 'no exemption applies' declaration was made for those years. This restriction is a significant limitation on the usual appeal rights that property owners might otherwise have. Owners with questions about their specific circumstances for those tax years should seek independent legal advice.

The SVT is calculated as a percentage of the property's assessed value as determined by BC Assessment, not its market value or purchase price. For the 2026 tax year, that percentage is 3% for foreign owners and untaxed worldwide earners, and 1% for BC residents and Canadian citizens or permanent residents. Owners can find their property's assessed value on their BC Assessment notice or through the BC Assessment online portal.

Yes, the SVT can apply to residential strata lots — including apartments and townhouses governed under the Strata Property Act (SBC 1998, c. 43) — if the strata lot is located in a designated community and the owner does not qualify for an exemption. Each strata lot is assessed individually based on its own assessed value and the owner's declaration status. Strata corporations themselves are not liable for the tax; the obligation rests with the individual strata lot owner.

The SVT and the BC Property Transfer Tax are separate levies administered by the BC Ministry of Finance under different legislation: the PTT is a one-time tax paid upon transfer of a property's title, while the SVT is an annual tax on ongoing ownership of a residential property in a designated community. Purchasing a property — even if PTT exemptions such as the First-Time Home Buyers' Program or the Newly Built Home Exemption apply — does not exempt the new owner from SVT obligations in subsequent years if they do not occupy or rent the property. Owners must file an SVT declaration each year regardless of how they acquired the property.