BC Speculation and Vacancy Tax

Definition

The BC Speculation and Vacancy Tax (SVT) is an annual tax imposed under the Speculation and Vacancy Tax Act (BC) on owners of residential property located in designated taxable regions. It targets homes left vacant by owners who do not pay most of their income tax in BC, with the policy goal of pushing such properties into the long-term rental market. Every owner of residential property in a taxable region must complete an SVT declaration annually by March 31, regardless of whether tax is owing.

Key rules

2026 rates:

• 0.5% of assessed value for Canadian citizens and permanent residents of Canada (other than members of a satellite family).
• 2% of assessed value for foreign owners and members of satellite families.
• A satellite family is defined as an individual or spouse who earns more than 50% of their total combined worldwide income outside Canada and is not a Canadian citizen or permanent resident.

Taxable regions (as specified by regulation):

• Metro Vancouver Regional District (excluding Bowen Island, Lions Bay, and Electoral Area A other than UBC and UEL).
• Capital Regional District (excluding certain Gulf Islands and the Juan de Fuca Electoral Area).
• Nanaimo (City), Lantzville, Abbotsford, Chilliwack, Mission, Kelowna, West Kelowna, and other specified municipalities (list expanded in 2023).

Core mechanics:

• Every owner of residential property in a taxable region must file an SVT declaration by March 31 for the prior calendar year, regardless of whether the property is occupied or exempt. Non-filing defaults to the maximum rate.
• Common exemptions include: principal residence, rented long-term (occupied for at least six months by a tenant, with rental periods of at least one month), certain medical and work-related absences, estate and transition exemptions, and specific property types (hotels, commercial, strata-restricted).
• Non-refundable tax credits are available for owners with income sources in BC (for Canadian citizens and PRs, the credit can offset SVT on assessed value up to approximately $400,000; for foreign owners and satellite families, the credit is based on BC income tax paid, subject to a lower cap).

Example

A Canadian citizen owns a second home in Kelowna with an assessed value of $1,500,000 on July 1, 2025. The home sat vacant most of 2025 while the owner lived in Toronto.

• Applicable rate: 0.5% (Canadian citizen, not a satellite family).
• SVT before credits: $1,500,000 × 0.5% = $7,500.
• Non-refundable credit available to Canadian citizens and PRs: equivalent to the SVT on up to $400,000 of assessed value, approximately $2,000.
• Net SVT payable: approximately $5,500.

If the same property were owned by a foreign national:

• Rate: 2%.
• SVT before credits: $1,500,000 × 2% = $30,000.
• Non-refundable BC income tax credit: only if meaningful BC-source income is earned (usually limited for non-residents).
• Net SVT payable: typically the full $30,000 or close to it.

Common mistakes

• Failing to file the annual declaration. This is the single most common and costly error.
• Assuming SVT only applies in Metro Vancouver. The taxable region list has expanded several times since 2018.
• Claiming the long-term rental exemption without meeting the minimum continuous tenancy requirement (at least six months in the year with minimum one-month tenancies).
• Confusing SVT with the federal Underused Housing Tax (UHT) or the Vancouver Empty Homes Tax. The three taxes can overlap on the same property and each has its own filing.

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