Since 2017, every owner of residential property in Vancouver is required to submit a property status declaration to determine if their property is subject to the Empty Home tax.
Properties deemed empty will be subject to a tax of 1% of the property’s 2018 assessed taxable value.
Most homes will not be subject to the tax, as it does not apply to principal residences or homes rented for at least six months of the year; however, all homeowners are required to submit a declaration.
Declare deadline is by February 4, 2019
Here’s the official website from City of Vancouver to teach you step by step on how you should submit a declaration
The Province of BC’s Speculation and Vacancy Tax is IN ADDITION to the City’s Empty Homes Tax. If you own residential property in Vancouver, you may have to pay both taxes.
The speculation and vacancy tax is a key measure in tackling the housing crisis in major urban centres in British Columbia, where home prices and rents have skyrocketed out of reach for many British Columbians.
The speculation and vacancy tax is a part of government’s 30-Point Plan to make housing more affordable for people in our province.
This new annual tax is designed to:
- Target foreign and domestic speculators who own residences in B.C. but don’t pay taxes here
- Turn empty homes into good housing for people
- Raise revenue that will directly support affordable housing
All owners of residential property in the designated taxable regions of B.C. must complete an annual declaration. Over 99% of British Columbians are estimated to be exempt from the tax.
How to exempt yourself:
To claim your exemption, you must register your property by March 31, 2019 – and it’s easy to do, either by phone or online. The information you’ll need to register your property declaration will be mailed by mid-February to all owners of residential property within the taxable regions.
Contact the City of Vancouver directly if you haven’t received one by late February.
Please note that if your property has more than one owner, even if the other owner is your spouse, a separate declaration must be made for each owner.
How the tax will be charged if you’re not exempt:
The speculation and vacancy tax rate varies depending on the owner’s tax residency and whether the owner is a Canadian citizen or permanent resident of Canada, or a member of a satellite family.
By levying the highest tax rate on foreign owners and satellite families (those who earn a majority of income outside the province and pay little to no income tax in B.C.), the speculation and vacancy tax is a way to make sure these property owners are paying their fair share in taxes.
The speculation and vacancy tax applies based on ownership as of December 31 each year.
Here’s the official website from City of Vancouver to teach you step by step on how you should exempt yourself from this tax.
Deadline to complete your declaration is March 31.
If you don’t own residential property in a designated taxable region, you don’t need to complete a declaration.
Tax rate for speculation and Vacancy tax 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
Contact me to discuss what this means to your real estate needs.
Edison Chua BComm 蔡尚辉
Edison Chua Personal Real Estate Corporation