BC Speculation Tax

Second properties will only be hit with the speculation tax if they’re in: Kelowna and West Kelowna.

Changing rates from 2018 to 2019

All properties that are affected by the tax will pay a rate of 0.5 per cent in 2018. In 2019, the rates will change.

A lower tax rate for B.C. residents

From 2019, B.C. residents who are subject to the tax will pay a rate of 0.5 per cent; Canadians from outside B.C. who have properties in the province that are subject to the tax will pay a 1 per cent tax rate, while non-Canadians will continue to be hit with the previously-announced 2 per cent rate.

Tax credits

Second properties belonging to British Columbians will be eligible for a $400,000 non-refundable tax credit, meaning second properties whose assessed value is less that $400,000 will be exempted from paying the speculation tax.

Special exemptions

Property owners “facing special circumstances” will be exempt from the tax. This covers properties where the owner or tenant is “undergoing medical care or residing in a hospital, long-term care or a supportive-care facility,” is “temporarily” absent because of their job or the owner is deceased and the estate is under the process of being administered.

Phased-in long term rental rule

If a secondary property is rented out as a long-term rental, it will be exempt from the tax.

From 2019, a long-term rental property will be one where the owner is not living in the property but is able to rent it out for more than six months per year. The property can be rented multiple times in a year, but each tenancy must last at least 30 days.

In 2018, the property must be rented out for just three months of the year.

FOR MORE INFORMATION: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.

Amanda Westrheim

Amanda Westrheim

REALTOR®
CENTURY 21 Assurance Realty Ltd.
Contact Me

Blog Archives