Vancouver's Empty Homes & Vacancy Taxes — and How to Stop Paying Them
A vacant home is taxed across all of Metro Vancouver, not just the City of Vancouver. Here's exactly what applies, what it costs, who's exempt, the deadlines that catch people out, and the two ways to end it — both of which we handle for owners who live abroad.
By Hani Faraj | Senior Partner, REALTOR® | RE/MAX Crest Realty, Vancouver
In This Guide
1. Which taxes apply — and where
There are two separate vacancy taxes on Vancouver-area real estate, and the most important thing for an owner abroad to grasp is that the bigger one is region-wide. Being outside the City of Vancouver does not put you in the clear.
The provincial Speculation & Vacancy Tax (region-wide)
Despite the word "speculation" in its name, this tax has little to do with flipping property — it targets homes that sit empty. It applies to residential property across every municipality in Metro Vancouver and 59 BC communities in total, including Burnaby, Surrey, Richmond, Coquitlam, North and West Vancouver, Delta, Langley and White Rock, plus the Capital Region around Victoria, the Fraser Valley, and much of the Okanagan and Vancouver Island. The rate is 0.5% of assessed value per year for Canadian citizens and permanent residents, and 2% for foreign owners and "satellite families" — households that declare most of their worldwide income outside Canada.
The City of Vancouver Empty Homes Tax (city only)
On top of the provincial tax, the City of Vancouver levies its own Empty Homes Tax of 3% of a property's assessed value per year on homes that are not the owner's principal residence and are left unoccupied for more than six months of the year. It applies only within the City of Vancouver's boundaries — but where it applies, it is charged in addition to the provincial tax.
Outside the City of Vancouver you generally face only the provincial tax; inside the City of Vancouver both apply and stack. Either way, an empty home is taxed — the question is only how much.
2. What it actually costs
Because both taxes are calculated on assessed value, not on rent or income, the numbers get large quickly on Vancouver-area real estate. A worked example on a vacant $1,000,000 condo:
- Foreign owner, anywhere in Metro Vancouver: 2% Speculation & Vacancy Tax = about $20,000 per year.
- Foreign owner, inside the City of Vancouver: 2% + 3% = 5% = about $50,000 per year.
- Canadian citizen or PR, anywhere in Metro Vancouver: 0.5% = about $5,000 per year (plus the 3% Empty Homes Tax if inside the City of Vancouver).
These figures are on top of strata fees, property tax, insurance, and any special assessments — all being paid on a home that produces no income. For many owners abroad, a year or two of that is more than enough reason to either rent the property out or sell it.
The former federal Underused Housing Tax (1%) was eliminated by the 2025 federal budget — no tax and no returns for 2025 onward. We are not tax advisors; confirm your rates, municipality and exemptions with your accountant.
3. Who is exempt
Both taxes have exemptions, but they must be claimed through the annual declaration — they are not automatic. The most common ones for the owners we work with:
- Principal residence — the home is where you actually live for most of the year. This rarely helps an owner living abroad, which is exactly why international owners are the group most affected.
- Occupied by a qualifying long-term tenant — generally rented for at least six months of the year on a proper tenancy. This is the exemption most absentee owners use, and it comes with rental income attached.
- Special circumstances — for example the owner is in medical or residential care, the property is part of the estate of someone recently deceased, it is undergoing major renovations or redevelopment with permits, or ownership recently changed. Details and eligibility vary between the two taxes.
Many owners abroad would have qualified for an exemption but get charged anyway — because they missed the declaration, or because a "vacant" period slipped past the six-month line. Getting a qualifying tenant in place, or selling, removes the uncertainty entirely.
4. The annual declarations that catch people out
Each tax requires a declaration every year, for every property — even when the home is fully exempt. This is where owners overseas most often get stung: not by genuinely owing the tax, but by a missed filing.
- BC Speculation & Vacancy Tax — declared each spring by every owner of residential property in the taxable regions. The province mails a declaration letter to the property; if you're abroad, it's easy to miss.
- City of Vancouver Empty Homes Tax — declared each winter for properties inside the City of Vancouver.
If a deadline passes without a declaration, the property is treated as taxable and you can be billed the full amount — then have to fight to reverse it. If a deadline is coming up and you're not sure where your property stands, get in touch and we'll point you in the right direction (and to the right accountant).
5. The two ways to stop it — rent or sell
There are only two durable ways to stop paying the vacancy taxes on a home you don't live in, and we handle both end to end for owners abroad:
1. Rent it out
Place a qualifying long-term tenant (generally 6+ months of the year) and most owners become exempt from both taxes — while earning income instead of paying penalties. We screen, lease and manage it, so you have nothing to run day to day. Property management →
2. Sell it
Cash out and the taxes, strata fees, declarations and upkeep end entirely. We run the whole sale remotely — cleaning, clear-outs, repairs, staging, and shipping important items to you overseas. Remote selling →
Which one is right depends on your goals, the building, and the numbers. We'll show you a realistic rent and a realistic sale price side by side so you can decide on facts, not guesses.
6. How we help owners overseas
Hani Faraj and the team at RE/MAX Crest Realty act for owners who can't be here in person. Whether the answer is to place a tenant or to sell, we do the work on the ground — valuation, tenanting or a fully remote sale, cleaning and clear-outs, and shipping what matters to you — with one point of contact and updates in your time zone. Tell us where your property is and whether you're leaning toward renting or selling, and we'll come back with the numbers and a plan.
Frequently asked questions
Yes. The provincial Speculation & Vacancy Tax applies to every municipality in Metro Vancouver (Burnaby, Surrey, Richmond, Coquitlam, the North Shore, Delta, Langley, White Rock and more) plus the Capital Region, Fraser Valley, Kelowna, Nanaimo, Kamloops and others — 59 communities. It is 0.5% for citizens/PRs and 2% for foreign owners and satellite families. The 3% City of Vancouver Empty Homes Tax only applies inside the City of Vancouver.
For a foreign owner: about $20,000/year (2%) anywhere in Metro Vancouver, or about $50,000/year (5%) inside the City of Vancouver where the 3% Empty Homes Tax stacks on top. Citizens/PRs pay the lower 0.5% rate — before strata fees, property tax and insurance.
Common exemptions include your principal residence, a qualifying long-term tenancy (6+ months/year), and special circumstances (care, estate, major permitted renovation, recent purchase). Exemptions must be claimed on the annual declaration and differ slightly between the two taxes — confirm with your accountant.
Rent it out to a qualifying long-term tenant (most owners become exempt and earn income), or sell and end the taxes entirely. We handle both remotely for owners abroad. You must still file the annual declarations to claim an exemption.
Yes — both taxes require an annual declaration for every property. Miss the deadline and you can be charged the full tax even when you would have qualified for an exemption.
The federal Underused Housing Tax (1%) was eliminated by the 2025 federal budget — no tax and no returns for 2025 onward. The provincial and City of Vancouver taxes above still apply.
Stop the vacancy tax on your property
Tell Hani where your property is and whether you'd rather rent it out or sell — you'll get the numbers and a plan, in your time zone.
Prefer to call now? 604-265-7975 · Hani Faraj · Senior Partner & REALTOR® · RE/MAX Crest Realty