BC Speculation and Vacancy Tax – What Property Owners Need To Know

Posted on 15/10/2025

Here’s what you need to know about the BC Speculation and Vacancy Tax, and how to avoid it.

The Speculation and Vacancy Tax was enacted by the B.C. government to reduce the number of vacant homes in B.C.’s major urban centres.

In Metro Vancouver, this annual tax applies to all residential property owners in Metro Vancouver (excluding Bowen Island).

All property owners in taxable regions must complete a declaration, even if they are eligible for an exemption.

Who is exempt from the Speculation Tax?

In general, property owners are eligible for an exemption if the property is:

Principal residence
Occupied by a tenant for at least six months of the year (short-term rentals under one-month do not count)
Uninhabitable, under construction, or undergoing extensive renovations
Purchased or inherited during the taxable year
Vested in a trustee in bankruptcy

Or, in one or more of the following scenarios:

Owners separated during the taxable year
Owner, partner, or child temporarily relocated for medical treatment
Recent death of an owner

For detailed exemption rules, visit the Exemptions for Individuals page on the B.C. Government’s Speculation and Vacancy Tax website.

What should I know about tenants and the Speculation Tax?

The B.C. Government distinguishes between Arm’s Length and Non-Arm’s Length Tenants, and provides different rules depending on ownership status:

1. Arm’s Length Tenant

Exemption applies if the tenant pays rent, has a written tenancy agreement, and treats the property as their principal residence

2. Non-Arm’s Length Tenant / Canadian or Permanent Resident Owner

Exemption may apply even if rent is not paid or no written agreement exists, as long as the tenant resides in the property most of the time
Spouses or children cannot be considered tenants

3. Non-Arm’s Length Tenant / Foreign Owner

A foreign owner with a Non-Arm’s Length Tenant can qualify for a tax exemption if at least one tenant meets all of the following criteria:

A Canadian citizen or permanent resident
A resident of BC for income tax purposes at the end of the last day of the calendar year
Not be an untaxed worldwide earner (where the majority of income combined with spouse is earned outside of Canada and not reported on a Canadian tax return), and
Has a B.C. income for the calendar year that is equal to or greater than three times the annual fair market rent for the entire residential property.

4. Non-Arm’s Length Tenant / Canadian and Foreign Co-owners

Exemptions are determined individually for each owner based on their status.

For a more detailed breakdown of the tenancy exemptions, visit the Tenancy Requirements page on the B.C. Government’s Speculation and Vacancy Tax website.

What is the current B.C. Speculation Tax rate?

If an owner does not qualify for an exemption, the B.C. Speculation Tax is applied as follows:

2019 – 2025

Canadian citizen or permanent resident: 0.5% of assessed property value
Foreign owner or member of a satellite family: 2% of assessed property value

2026 and beyond

Canadian citizen or permanent resident: 1%
Foreign owner or member of a satellite family: 3%

Key Dates for 2026:

February 2026: Declaration arrives via mail
March 31, 2026: Declaration due
July 2, 2026: Tax payment due (if applicable)

How do I complete the Speculation Tax declaration?

The declaration can be completed online at the B.C. Government’s Speculation & Vacancy Tax website, or via phone at 1.604.660.2421 or 1.833.554.2323 (toll-free)

Important Reminders:

Each named owner must complete a separate declaration, even as a spouse.
To declare on time and avoid penalty, ensure the mailing address on file with BC Assessment is up-to-date.

Additional Resources

The BC Speculation and Vacancy Tax continues to evolve on a yearly basis. Note that this tax is separate from the Government of Canada’s Underused Housing Tax and the City of Vancouver’s Empty Homes Tax. If you have questions about how these taxes may apply to your investment property, call us at 604.260.9955.

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