BC Speculation + Vacancy Tax
BC's annual SVT on residential property in designated taxable regions. Most BC residents are exempt (declared annually). Foreign owners and Canadian satellite families pay 2%.
Your scenario
Result
Most BC owner-occupied properties are exempt with a yearly declaration. The tax targets vacant homes and foreign-owned properties.
BC Speculation and Vacancy Tax — who actually pays
The BC SVT is an annual tax on residential property in designated taxable regions, introduced in 2018. The provincial government bills it as targeting two specific groups: vacant homes and foreign or satellite-family owners. Most BC residents pay $0 because they file an annual exemption declaration.
Rates by owner type
- Canadian citizens and PRs: 0.5% of assessed value if the property is vacant + no exemption applies
- Foreign owners and satellite families: 2.0% of assessed value, vacancy or not
“Satellite family” means most of the household's income is earned outside Canada (and so not reported on Canadian tax returns) — a target group separate from foreign nationals.
Designated taxable regions
The SVT only applies in specific regions — expanded multiple times since launch. Current taxable regions include:
- Metro Vancouver (most of it)
- Capital Regional District (Victoria area)
- Nanaimo, Lantzville
- Kelowna, West Kelowna, Lake Country, Peachland
- Chilliwack, Mission, Abbotsford
- Squamish
- Most resort municipalities (Whistler, Tofino, etc.)
- Additional municipalities added in subsequent years
The declaration — even if exempt
Every owner of residential property in a designated region must file an annual declaration, even if they qualify for an exemption. Miss the deadline (typically end of March for the prior tax year) and the SVT bills automatically at the relevant rate.
Common exemptions
- Principal residence of an owner-occupier
- Rented for 6+ months in the year to a non-owner tenant
- Recent purchase / sale within the year
- Owner away for medical reasons
- Property under construction or major renovation with valid permits
- Death of owner — estate has a grace period
- Strata accommodation property with rental restrictions on the title
How the SVT stacks with other taxes
If you're a non-Canadian buying in a BC taxable region:
- Federal UHT — 1% on top
- BC Foreign Buyer Tax — 20% one-time at purchase
- BC SVT — 2% annual
- Regular BC PTT — graduated
- Plus regular property tax (very low in BC — ~0.3%)
Total first-year cost for a foreign buyer of a $1.5M Vancouver home in a taxable region can easily exceed $400,000 in transfer + annual taxes.
Where the revenue goes
BC SVT revenue is earmarked for affordable housing in the regions where it's collected. The province publishes annual reports on collections and allocations.