British Columbia's Speculation and Vacancy Tax (SVT) has now been raised in back-to-back provincial budgets, and the second increase is already legislated before the first one has even been billed. For most individual homeowners this is a well-covered story. For business owners who hold residential property through a corporation, holding company, or trust — staff housing, a secondary suite in a mixed-use building, an investment condo, a property held for eventual redevelopment — it is a compliance and cash-flow issue that is easy to miss, because the tax bill for a change that took effect January 1, 2026 will not actually land until the summer of 2027.
What changed for the 2026 tax year
Effective January 1, 2026, the SVT rate for Canadian citizens and permanent residents of Canada rose from 0.5% to 1% of a property's assessed value, and the rate for foreign owners and "untaxed worldwide earners" rose from 2% to 3%.
Source: Government of British Columbia — Making homes available for people with speculation and vacancy tax.
Source: Government of British Columbia — Tax rates for the speculation and vacancy tax.
And a second increase is already coming for 2027
British Columbia's Budget 2026, tabled February 17, 2026, raises the foreign owner and untaxed-worldwide-earner rate a second consecutive year, from 3% to 4%, effective for the 2027 tax year — that is, for a property's use during the 2027 calendar year. The Canadian citizen/permanent resident rate is not affected by this second increase; it stays at 1%.
The province's own budget documents illustrate the scale at the new rate: roughly $88,000 per year in SVT on an average Vancouver single-family detached home (assessed near $2.21 million), and roughly $20,000 per year on an average Vancouver condo or townhome (assessed near $806,000). Projected SVT revenue climbs accordingly, from $105 million in the 2025/26 fiscal year to $161 million in 2026/27 and $184 million in both 2027/28 and 2028/29.
Source: Government of British Columbia — Budget tax changes.
The timing trap: you're already inside the new rate, but won't see the bill until next year
The SVT runs on a one-year lag between the property-use year and the bill. Owners declare by March 31 for how a property was used in the preceding calendar year, and pay by the first business day of July of that same declaration year. The declaration due March 31, 2026 (paid by July 2, 2026) covered 2025 usage, at the old rates — that cycle has already closed. The property-use year running right now, January through December 2026, is the one taxed at the new, doubled rates, and it will not be declared until March 31, 2027 or billed until July 2, 2027.
Source: Government of British Columbia — How to declare for the speculation and vacancy tax.
In other words, the higher rate is already accruing on any exposed property today, even though nothing appears on a statement until next spring and no cash is due until next summer. Businesses that budget reactively — waiting for the notice to arrive — will be planning for this liability roughly eight months later than they should.
Why the corporate ownership chain matters more than the corporate address
The SVT does not simply tax "the corporation" at a flat rate. Where a residential property is held by a corporation, trustee, or business partnership, the applicable rate is the highest rate that would apply to any of its corporate interest holders, beneficial owners, or partnership interest holders if each held the property individually. A corporation only qualifies for the lower 1% rate if, at year-end, every corporate interest holder is a specified Canadian citizen or specified permanent resident of Canada. A single non-resident shareholder, or an untraceable beneficial interest, is enough to push the entire property onto the higher foreign-owner rate — regardless of where the company itself is incorporated or headquartered.
The same look-through applies to exemptions. A corporate-owned property can still qualify for the standard exemptions (a tenanted rental, a principal residence, and others), but only if every corporate interest holder and beneficial owner individually meets the underlying test — for the principal-residence exemption, for example, that means every interest holder must be a Canadian citizen or permanent resident and a BC resident for income tax purposes. Declaring is mandatory every year regardless of whether an exemption applies; missing the March 31 deadline can forfeit an otherwise-valid exemption and trigger a default assessment. Budget 2026 adds a further reason not to miss it: starting with the 2027 tax year, a missed March 31 declaration carries a new $250 non-refundable late-declaration penalty, on top of any tax otherwise assessed.
Source: Government of British Columbia — Budget tax changes.
The offsetting credit also doubled
Working the other direction, the non-refundable SVT tax credit available to BC resident owners doubled alongside the rate increase: the maximum credit rose from $2,000 (2025 and earlier tax years) to $4,000 for the 2026 tax year and after. The credit is calculated by ownership percentage and can meaningfully reduce or eliminate the tax for resident owners, but it does not help a corporation whose ownership chain includes a non-resident interest holder taxed at the higher rate.
Source: Government of British Columbia — Tax credits for the speculation and vacancy tax.
A separate tax if the property is in Vancouver itself
Businesses holding residential property within the City of Vancouver face a second, entirely separate obligation: the City's own Empty Homes Tax, currently 3% of a property's assessed taxable value for a property deemed or declared vacant, with its own declaration process and deadlines distinct from the province's SVT. The two taxes stack — a Vancouver property that is vacant can be liable for both the provincial SVT and the municipal Empty Homes Tax in the same year, based on two different declarations filed with two different levels of government.
What to do now, ahead of next spring's declaration
- Inventory any residential property held anywhere in your corporate structure — the operating company, a holding company, or a related trust — in a designated taxable area, not just properties obviously used as investments.
- Check every interest holder and beneficial owner in the ownership chain against citizenship, permanent residency, and BC tax residency. One non-qualifying interest holder changes the rate for the whole property.
- File the declaration by March 31 every year, even where an exemption clearly applies — the filing itself, not just eligibility, is what preserves the exemption.
- Budget cash flow now for the 2026 tax year's bill, due July 2, 2027 at the doubled rate, and start planning ahead of the further increase to 4% that lands with the 2027 tax year, billed July 2, 2028.
- If the property is in Vancouver, confirm the City's Empty Homes Tax declaration is being filed separately from the provincial SVT declaration.
Key takeaways
- BC's Speculation and Vacancy Tax rates doubled for the 2026 tax year: 1% for Canadian citizens/permanent residents (up from 0.5%), 3% for foreign owners and untaxed worldwide earners (up from 2%).
- Budget 2026 (February 17, 2026) already locks in a second increase, to 4% for foreign owners/untaxed worldwide earners, effective for the 2027 tax year.
- Because SVT bills lag a year, the 2026 tax year's doubled-rate bill is due July 2, 2027 — budget for it now rather than waiting for the notice.
- For corporate, trust, or partnership ownership, the rate (and any exemption) is set by the highest-taxed interest holder or beneficial owner — one non-resident stake taxes the whole property.
- Starting with the 2027 tax year, missing the March 31 declaration carries a new $250 non-refundable penalty, even before any exemption is considered.
- The BC resident tax credit doubled to $4,000, but it only helps interest holders who qualify for the lower rate to begin with.
- Vancouver properties face a separate 3% Empty Homes Tax on top of the provincial SVT, with its own filing deadline.
If your business holds residential property through a corporation or holding structure and you want the ownership chain checked against BC's speculation and vacancy tax rules, or your cash-flow plan updated for the 2027 rate increase, RN Canada works with BC business owners on exactly this kind of year-round tax and compliance planning.