January 24, 2019
From Canada: British Columbia Speculation and Vacancy Tax
To prevent housing speculation in British Columbia and help turn vacant homes into rentals in the Canadian province’s overheated market, the BC provincial government in 2018 implemented the BC Speculation and Vacancy Tax. Impacting residential property located in certain areas of British Columbia, for 2018 owners are subject to a tax of 0.5% of the assessed value of the property as of July 1, 2018, with the tax rate rising up to 2% in certain situations in 2019 and beyond. Areas impacted by the tax include, Metro Vancouver and areas in the Fraser Valley, Victoria, Kelowna and Nanaimo. Areas such as Whistler, Penticton and Vernon are not in the affected areas and are not subject to the tax.
Exemptions to the tax include owners that occupy the property as their primary residence or use it to earn rental income on a long term basis. The BC government expects that over 99% of British Columbians will be exempt from this tax.
This month, the BC provincial government announced that all residential property owners in these areas must complete an annual declaration to claim any relevant exemptions to the tax.
Click here to learn more: British Columbia Speculation and Vacancy Tax