What Is the BC Speculation and Vacancy Tax?
The BC Speculation and Vacancy Tax (SVT) is a provincial tax on residential property owners in designated urban areas of British Columbia. It targets:
- Foreign owners
- Satellite families (earning income abroad)
- Properties left vacant
- Non-resident Canadians
| Feature |
Details |
| Tax type |
Provincial (BC government) |
| Start year |
2018 |
| Annual declaration |
Required |
| Purpose |
Increase housing supply, encourage occupancy |
Tax Rates by Owner Category
2025–2026 Rates
| Owner Category |
Tax Rate |
| Foreign owners |
2.0% |
| Satellite families |
2.0% |
| Canadian citizens/PRs (not BC residents) |
0.5% |
| BC residents (not exempt) |
0.5% |
| BC residents (exempt) |
0% |
How Owner Category Is Determined
| Status |
Definition |
| Foreign owner |
Not Canadian citizen or permanent resident |
| Satellite family |
Family income earned primarily outside Canada |
| BC resident |
BC income tax filer, lives in BC |
| Non-BC Canadian |
Canadian living in another province |
Satellite Family Definition
A property owner is a satellite family member if:
- They have a spouse or common-law partner
- More than 50% of the family’s worldwide income is earned outside Canada
- Income is not reported to CRA
Areas Subject to the SVT
Designated Taxable Areas
| Region |
Included Municipalities |
| Metro Vancouver |
Vancouver, Burnaby, Surrey, Richmond, Coquitlam, etc. |
| Capital Regional District |
Victoria, Saanich, Oak Bay, Esquimalt, Langford, etc. |
| Fraser Valley |
Abbotsford, Chilliwack, Mission |
| Okanagan |
Kelowna, West Kelowna |
| Nanaimo Area |
Nanaimo, Lantzville |
Areas NOT Subject to SVT
| Area Type |
Examples |
| Rural BC |
Most areas outside designated regions |
| Smaller towns |
Many smaller communities |
| Islands |
Some Gulf Islands |
Tax Calculation Examples
2% Rate (Foreign Owner)
| Property Value |
Annual Tax |
| $500,000 |
$10,000 |
| $1,000,000 |
$20,000 |
| $1,500,000 |
$30,000 |
| $2,000,000 |
$40,000 |
| $3,000,000 |
$60,000 |
0.5% Rate (Non-Exempt Canadian)
| Property Value |
Annual Tax |
| $500,000 |
$2,500 |
| $1,000,000 |
$5,000 |
| $1,500,000 |
$7,500 |
| $2,000,000 |
$10,000 |
| $3,000,000 |
$15,000 |
Exemptions
Principal Residence Exemption
| Requirement |
Details |
| Owner must be BC resident |
File BC income tax |
| Property is principal residence |
Live there most of the year |
| Only one exemption |
Per person per year |
Tenancy Exemption
| Requirement |
Details |
| Arm’s length tenant |
Not related to owner |
| Minimum 6 months |
Must be occupied 6+ months |
| Written lease |
Tenancy agreement required |
Other Exemptions
| Exemption |
Details |
| Death of owner |
Deceased owner exemption |
| Separation/divorce |
Relationship breakdown |
| Strata rental restrictions |
Property cannot be legally rented |
| Major renovations |
Active building permits |
| Medical care |
Owner in hospital/care facility |
| Property under construction |
New build not completed |
| Uninhabitable |
Damage, disaster |
| Race-based exemptions |
Indigenous owners on reserve lands |
Special Circumstances
| Situation |
Exemption |
| Property as rental business |
May qualify |
| Seasonal property |
Generally not exempt |
| Investment property |
Generally not exempt |
| Multiple properties |
Only one primary residence exempt |
Annual Declaration Requirements
Who Must Declare
All owners of residential property in designated areas must file an annual declaration, even if exempt.
Declaration Deadline
| Tax Year |
Declaration Due |
| 2025 |
March 31, 2026 |
| 2026 |
March 31, 2027 |
How to Declare
- Receive declaration letter (January–February)
- Log in to BC SVT online portal
- Enter declaration code from your letter
- Complete declaration answering:
- Your residency status
- Property use
- Tenancy information
- Exemption claims
- Submit by March 31
Penalty for Not Declaring
| Consequence |
Result |
| No declaration |
Deemed not exempt |
| Full tax rate applied |
2% for foreign, 0.5% for Canadian |
| Cannot claim exemption retroactively |
Must pay and appeal |
BC SVT vs Vancouver EHT
Key Differences
| Feature |
BC SVT |
Vancouver EHT |
| Level |
Provincial |
Municipal |
| Area |
Metro Van + other regions |
City of Vancouver only |
| Rate |
0.5%–2% |
5% |
| Declaration |
March 31 |
February |
| Stacking |
Yes |
Yes |
If You Own in Vancouver
| Your Status |
BC SVT |
Vancouver EHT |
Combined |
| BC resident, principal residence |
Exempt |
Exempt |
$0 |
| BC resident, vacant property |
0.5% |
5% |
5.5% |
| Foreign owner, vacant |
2% |
5% |
7% |
| Foreign owner, rented 6+ months |
2% |
Exempt |
2% |
Example: Foreign Owner with Vacant $2M Property in Vancouver
| Tax |
Amount |
| BC Speculation Tax (2%) |
$40,000 |
| Vancouver Empty Homes Tax (5%) |
$100,000 |
| Total Annual Tax |
$140,000 |
How to Reduce Your SVT
Option 1: Become a BC Resident
| Requirement |
Details |
| File BC income tax |
As BC resident |
| Live in BC |
Make BC your home |
| Declare principal residence |
Property is your primary home |
Option 2: Rent the Property
| Requirement |
Details |
| Arm’s length tenant |
Not family member |
| 6+ months occupancy |
Tenant lives there |
| Written lease agreement |
Documentation required |
| Fair market rent |
Not nominal rent |
Option 3: Claim Exemption
If you qualify for any exemption, declare it properly with documentation.
Option 4: Restructure Ownership
| Strategy |
Considerations |
| Transfer to BC resident |
May trigger tax (capital gains, PTT) |
| Sell property |
Ends tax obligation |
| Add BC resident owner |
Shared ownership rules apply |
Tax Credits for Canadian Citizens
BC Resident Tax Credit
| Credit |
Details |
| Amount |
Up to full SVT amount |
| Eligibility |
BC residents filing BC tax |
| Claim |
On BC income tax return |
| Result |
Reduces SVT to $0 |
Non-Resident Tax Credit
| Credit |
Details |
| Amount |
Reduced credit available |
| Eligibility |
Canadian filing federal return |
| Claim |
Through SVT credit form |
| Result |
May reduce but not eliminate |
Payment and Penalties
Payment Deadline
| Event |
Date |
| Tax notice issued |
July |
| Payment due |
First business day of July |
| Interest accrues |
After due date |
Penalties
| Violation |
Penalty |
| Non-declaration |
Full tax rate |
| Late payment |
Interest at prescribed rate |
| False declaration |
Up to $20,000 fine |
| Tax evasion |
Criminal penalties possible |
Appeals Process
How to Appeal
- Pay the tax (required before appeal)
- File Notice of Appeal within 90 days
- Provide evidence supporting your exemption
- Wait for review by BC government
- Refund if successful with interest
Grounds for Appeal
| Reason |
Evidence Needed |
| Incorrect residency determination |
Tax returns, proof of BC residence |
| Missed exemption |
Documentation of qualifying circumstance |
| Calculation error |
Assessment review |
| Owner change |
Transfer documentation |
Record-Keeping Requirements
| Document |
Retention Period |
| Declaration confirmations |
6 years |
| Lease agreements |
6 years |
| Proof of residence |
6 years |
| BC tax returns |
6 years |
| Property documents |
6 years |
Key Dates for 2026
| Date |
Event |
| January–February |
Declaration letters mailed |
| March 31 |
Declaration deadline |
| April–June |
Assessments processed |
| July |
Tax notices issued |
| First business day July |
Payment due |
| 90 days after notice |
Appeal deadline |
Key Takeaways
- All property owners in designated areas must declare annually
- Foreign owners and satellite families pay 2%
- BC residents claiming principal residence are exempt
- Renting property for 6+ months may provide exemption
- Vancouver property owners may owe both BC SVT and Vancouver EHT
- Failure to declare results in full tax with no exemption
- Keep records to support any exemption claims