First let’s clarify these are only 2 separate taxes. Even if you are a homeowner or renting out the home it is still important to see if you need to declare or file.
Tax 1. Speculation and Vacancy Tax is another tax sometimes shortened to be called Vacancy Tax.
Tax 2. Empty Home Tax is one tax, it is specific for City of Vancouver
Tax 1. Speculation and Vacancy Tax (short form “Speculation Tax”)
Who? applicable to all BC homeowners. So you must declare.
What?
– 2% of the previous year’s assessed property value for foreign owners and satellite families
– 0.5% of the previous year’s assessed property value for Canadian citizens or permanent residents of Canada who are not members of a satellite family
When? Deadline for filing is March 31st, 2023 for the year of 2022
How to be exempted?
- It is your principal residence
- You rent it at least six months of the year
- A person was away and it was vacant due to medical reasons, residential care, work or spousal separation
- You are disabled
- The property was just inherited
Filing Late?
if late – equal to 10% of the unpaid tax
if not filed – equal to the greater of $100 and $25 per day (to a maximum of $2,500).
How to declare?
Step 1. Gather required documents:
- the speculation & vacancy tax declaration letter BC government sent you
- your social insurance number (SIN)
- your date of birth
Step 2. Go to the following link: SPECULATION AND VACANCY TAX DECLARATION
Video Version of Guide: Quick video on how to submit Empty Home Tax
Tax 2. Empty Home Tax
Who? The Empty Homes Tax affects anyone who owns a Class 1 Residential Property ( residential real estate containing fewer than four dwelling units) in the City of Vancouver. Only city of Vancouver homeowners need to declare. (note: Burnaby for instance is not considered part of city of Vancouver)
What? 3% of the property’s 2022 assessed taxable value.
Why? It is a city of Vancouver only tax that was created to reduce the number of empty homes.
When? Deadline for filing is February 2nd, 2023 for the year of 2022 (though you can still make late declaration until July 5, 2023)
How to be exempted?
- Principal residences
- Properties that are rented out on a long-term basis – occupied for six months of the year or longer
- Property is undergoing major renovations or has a development permit in place
- Property has been prohibited from being occupied by a court order or if the property changed ownership during the previous tax year.
- Primary homeowner passed away the same year or was undergoing medical/supportive care.
- Owners of condos subject to strata rental bylaws that prohibit rentals
Filing Late?
You will be hit with the 1% empty home tax, plus an additional $250 fee. Note: False declarations will result in fines of up to $10,000 per day of the continuing offense plus payment of the tax.
How to declare?
Step 1. Gather required documents:
- Folio Number and Access code (both found on Property Tax Notice, if you cannot find it please call city of Vancouver at 604-873-7000)
- your social insurance number (SIN)
- your date of birth
Step 2. Go to the following link: Property status declaration for 2022
Wrapping up
For most real estate investors, finding a high quality tenant is the easiest way to be exempted from both taxes. Contact Refinity Homes for help and guidance on how to navigate the real estate market in Vancouver and tips on your investment properties. Reach out to us at 604-337-2733 or hello@refinityhomes.com
