The Speculation and Vacancy Tax is an annual tax based on how owners use residential properties in major urban areas in B.C.
The tax rate varies depending on the owner’s tax residency. In addition, the tax rate varies based on whether the owner is a Canadian citizen or permanent resident of Canada, or a satellite family
For 2019 and subsequent years, the tax rate is:
- 2% for foreign owners and satellite families
- 0.5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family
This tax is also different to the Vancouver’s empty home’s tax.
Source: Government of British Columbia
The speculation and vacancy tax applies based on ownership as of December 31 each year
A speculation and vacancy tax year is the same as a calendar year. Tax levied on December 31 is due the following July. For example, for a property owned as of December 31, 2019, the 2019 tax rate of 0.5% applies and the tax is due on July 2, 2020.
An additional 2% is payable for Foreign Owners and Satellite Families.
SUBJECT CLAUSES
When putting a Offer in on that Home that you absolutely love, it is important to ensure that you are not left on the hook to pay these Taxes. In a Seller’s Market where the Demand outstrips the Supply of Homes, Subject Free Offers become common.
There are dangers if it is not made legally clear who pays these taxes.