What is the Speculation tax and how could it affect me?
The Speculation and Vacancy Tax in British Columbia functions as an annual levy tied to the utilization of residential properties in regions most impacted by the prevailing housing shortage crisis. It comes into play when a home remains unoccupied or unrented for at least six months. The tax rates vary based on ownership status, with foreign owners subject to a 2% tax on the property's assessed value, while Canadian citizens or permanent residents face a 0.5% tax. This tax policy addresses the critical issue of housing availability by incentivizing property owners to either reside in their homes or contribute to the rental market. This tax will affect you if you were considering to buy a secondary home that you did not want to reside in for a least 6 months. *This is a brief overview and people should seek tax and legal advice to confirm status.