British Columbia · Speculation tax
BC's Speculation and Vacancy Tax (SVT) applies to residential property in designated taxable regions across BC, including Coquitlam and the rest of the Tri-Cities. Understanding the exemptions is critical — most owner-occupiers and long-term landlords are exempt, but vacant or short-term-rented homes face an annual tax of 1% of assessed value for Canadian citizens and permanent residents, or 3% for foreign owners and untaxed worldwide earners (2026 tax year). The Province has announced 4% for foreign owners and untaxed worldwide earners from the 2027 tax year.
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What should BC buyers know about the Speculation Tax?
Every owner of residential property in a designated BC taxable region must file an SVT declaration by March 31 each year. That includes Coquitlam, Port Coquitlam, Port Moody, Anmore and Belcarra. Most owner-occupiers and long-term landlords are exempt. Without an exemption, the 2026 rate is 1% of assessed value for Canadian citizens and permanent residents and 3% for foreign owners and untaxed worldwide earners (4% from 2027).
Speculation tax · BC
The SVT applies in designated taxable regions across BC, and Coquitlam is one of them. All residential property owners in those regions must declare annually. Most owner-occupiers and long-term landlords qualify for exemption, but the declaration is mandatory whether or not you owe tax.
1% of assessed value for Canadian citizens and permanent residents (increased from 0.5% for the 2026 tax year). 3% for foreign owners and untaxed worldwide earners (often called satellite families), up from 2% — and rising to 4% for the 2027 tax year. The Canadian rate stays at 1% for 2027.
Coquitlam, Port Coquitlam and Port Moody, plus the villages of Anmore and Belcarra, are all designated SVT taxable areas — part of 59 BC communities where the tax applies. Reserve, treaty and self-governing Indigenous Nation lands are not part of the taxable areas.
If the home is your principal residence you may be exempt, provided you meet the Province's conditions (it lists Canadian citizenship or permanent residence, B.C. residency for income tax, and not being an untaxed worldwide earner). You still claim it on the annual declaration.
A home occupied by a tenant for at least six months of the calendar year, in tenancies of at least one month, can be exempt. Arm's-length tenants need a written tenancy agreement under the Residential Tenancy Act; a qualifying family member (non-arm's-length tenant) does not need an agreement or to pay rent.
A home that can't be occupied for at least 90 days in the year because of construction or renovation may be exempt, as long as reasonable steps are taken without undue delay. Keep records of permits, progress and costs — the Province can ask for them.
Specific life events have their own exemptions: the year an owner dies and the following year, separation of spouses living apart for at least 90 consecutive days, and up to two years when a former principal residence is left for residential care or necessary medical treatment.
Every property owner in a specified taxable region must declare every year — even if exempt. Miss the March 31 deadline and you can receive a tax notice even if you would have qualified for an exemption. You generally have up to three years to submit or correct a declaration.
Craig Johnston is a 47-year Coquitlam resident and licensed REALTOR® at Royal LePage Elite West. Top 1% Team — Greater Vancouver REALTORS®, 2023–2025. Talk through your specific situation — no pressure, no obligation.
The provincial Speculation and Vacancy Tax (SVT) reaches most of Metro Vancouver, Coquitlam included. Here is the orientation every BC owner should have — then confirm the current details for your situation.
What it is
The SVT is a British Columbia tax aimed at homes left vacant and at certain non-resident or satellite owners. It is separate from municipal property taxes. (The federal Underused Housing Tax was eliminated for 2025 and later years, so the SVT is now the main vacancy tax for Tri-Cities owners.)
Who declares
In a designated region, all owners of residential property must complete an annual declaration — even those who owe nothing. Missing the declaration is how many owners get billed by mistake.
Exemptions
Owners who live in the home as a principal residence, or who rent it out for enough of the year, are commonly exempt. The exemption is not automatic; you claim it through the declaration.
Rates
Rates differ between Canadian citizens or permanent residents and foreign owners or untaxed worldwide earners — and the Province raised them for 2026, with a further increase for foreign owners in 2027. Do not assume a figure — check the current rate that applies to your circumstances.
Buying in
When purchasing, understand the property's declaration status and your obligations for the year of purchase, so the tax does not surprise you after possession.
For you
For most owner-occupiers the practical takeaway is simple: file the annual declaration on time and you are almost always exempt. When in doubt, confirm with the Province or a tax professional.
Tax rules change and every owner's situation differs, so treat this as a starting map, not advice for your specific property.
Craig can flag the SVT questions worth raising during a BC purchase and point you to the right professional to confirm exactly what you owe, if anything.
| Owner type | 2019–2025 | 2026 tax year | 2027 tax year (announced) |
|---|---|---|---|
| Canadian citizen or permanent resident (not an untaxed worldwide earner) | 0.5% | 1% | 1% |
| Foreign owner (not a Canadian citizen or permanent resident) | 2% | 3% | 4% |
| Untaxed worldwide earner (unreported income exceeds Canadian-reported income) | 2% | 3% | 4% |
Source: Province of B.C., Speculation and vacancy tax rates (gov.bc.ca). Tax is based on ownership as of December 31 and is due the first business day of July the following year. B.C. residents may get a credit of up to $4,000 from 2026.
The rates, exemptions and March 31 deadline are the same in all five Tri-Cities municipalities. Every one of them is a designated taxable area. What differs is the kind of home you own, and so which exemption you'll most likely rely on. The tax is based on your BC Assessment value, not the market benchmark prices below.
Designated taxable area. If you're rebuilding or renovating, the land-under-development exemption needs proof that work continued without undue delay. For context, the September 2026 detached benchmark was $1,584,400.
Designated taxable area. Owners who rent out a whole house or condo need at least six months of tenancy in the year, in tenancies of one month or more. The September 2026 townhouse benchmark was $834,300.
Designated taxable area. Condo investors should note that short-term rentals don't count toward the six-month tenancy exemption. The September 2026 apartment benchmark was $676,200.
Both villages are designated taxable areas. Belcarra and Indian Arm owners should check one specific exemption: properties with water access only, more than 100 metres from an existing road, can be exempt. Anmore's September 2026 detached benchmark was $3,063,700.
The SVT is assessed on how a home was used over the whole calendar year, based on who owned it on December 31. That timing catches buyers out. If you complete on a Coquitlam townhouse in November, you own it on December 31 and receive a declaration letter the following January or February, even though you only had the keys for six weeks.
The Province has an exemption for exactly this: a newly bought property is exempt for the year of purchase if the buyer paid property transfer tax, or didn't have to pay it because of certain exemptions such as the first-time home buyers' or newly built home exemption. You still have to file the declaration to claim it. If you're getting title some other way, such as an inheritance or family transfer, ask your lawyer which exemption applies. Inherited property has its own exemption for the year it's inherited.
The year after purchase is where planning matters. From January 1 you need a regular exemption, usually one of these:
A common gap is the buyer who buys a second home in, say, Port Moody, plans to fix it up and rent it, but takes most of the year to find a tenant. If renovation work isn't continuous and the tenancy doesn't reach six months, the home may not qualify for either exemption. Without an exemption, the 2026 rate is 1% of your share of assessed value for Canadian citizens and permanent residents. B.C. residents can apply a credit of up to $4,000. Foreign owners and untaxed worldwide earners pay 3%, rising to 4% in 2027.
Because liability follows ownership on December 31, a home you sell before year-end isn't yours to declare for that year. The buyer's year-of-purchase exemption usually covers it. For the full list of purchase costs, see our Coquitlam closing costs guide.
Most owners in BC's taxable regions don't pay it, but every owner on title has to file a declaration by March 31 to claim the exemption. The Province estimates more than 99% of British Columbians are exempt, mainly because they live in the home as a principal residence or rent it out for at least six months of the year. Tax only applies when no exemption fits, and it's calculated on your share of the assessed value as of December 31.
For the 2026 tax year it's 1% of assessed value for Canadian citizens and permanent residents who aren't untaxed worldwide earners, up from 0.5%; the Province has kept it at 1% for 2027. As an illustration, a home assessed at $1,200,000 with no exemption would carry $12,000 before credits. B.C. residents may be eligible for a tax credit, which rose from $2,000 to $4,000 for 2026, so the net bill can be lower.
There isn't one. The tenancy exemption only counts occupancy in tenancies of at least one month, adding up to six months or more in the calendar year, so nightly or weekly stays don't qualify. A condo used mainly for short-term rentals is treated like any other home without an exemption. Some owners mix the two, for example a six-month furnished lease plus personal use, but each tenancy still has to meet the Province's requirements.
Yes, and it doesn't have to be at market rent. The Province treats a family member as a non-arm's-length tenant: they need the owner's permission to live there, the home must be where they live most of each month, and they must occupy it for at least six months of the year. No written agreement or rent is required. Foreign owners face extra tests: the family tenant must be a Canadian citizen or PR, a B.C. resident, and have B.C. income of at least three times the annual fair market rent.
Usually not. The Province exempts a newly bought property for the year of purchase if you paid property transfer tax on it, or didn't have to because of certain PTT exemptions such as first-time buyer or newly built home. You still declare the following winter. From the next calendar year on, you need a regular exemption, such as living there or renting it out for six months. See how property transfer tax works.
Yes. Each person on title makes a separate declaration, even if the co-owner is your spouse or a relative. Your declaration letter has your own Letter ID and Declaration Code. If tax is owed, it's split by ownership share, so equal co-owners each owe tax on 50% of the assessed value. This matters when parents go on title to help a child buy in the Tri-Cities: each parent has to declare every year.
Not if construction is moving forward. Land under development is exempt when there's no residence yet because of the building stage, or the home can't be occupied for 90 days in the year, and reasonable steps are taken without undue delay. That covers a knock-down rebuild on an older Coquitlam lot. Keep permits, invoices and progress photos, because the Province can ask for proof of building activity for each year.
Not right away. If you lived in the home and then moved into a care facility because of age, illness, disability or frailty, your former principal residence can stay exempt for up to two years. A similar exemption, also up to two years, applies when you're away for necessary medical treatment for yourself, your spouse or your minor child, with a practitioner's certification. After that, the home needs another exemption, such as a tenant or a sale.
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The speculation tax rarely costs my buyers anything. That's because we plan for it before the offer instead of finding out after possession.
Before we write an offer, I ask how the home will be used: principal residence, family member living there, rental, or a second home. Each one points to a different SVT exemption with its own tests, and I want those tests settled before you commit, not after you get your first declaration letter.
If parents, a spouse or a company will be on title, I flag that each owner declares separately and that tax is split by ownership share. Foreign co-owners face higher rates and stricter family-tenant rules. Your lawyer or accountant confirms the right structure before completion.
If you're renting the home out, I help you think through the calendar: six months of tenancy in the year, in tenancies of at least one month, with a written agreement for arm's-length tenants. For moves, I point out that the year of purchase is generally exempt when PTT applies.
After closing, I remind clients that a declaration letter arrives in January or February and that every owner on title must declare by March 31, even when no tax is owed. For anything unusual, I refer you to the Province's SVT line or a tax professional.
For examples of how I plan purchases around details like this, see my Tri-Cities case studies. Read the Tri-Cities case studies →
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“Craig was patient throughout the entire process. He never pushed us to buy something we weren't sure about, and when we decided to wait six months and save more, he just said ‘good call’ and stayed in touch. When we did finally buy, the math was so much cleaner.”Susie & Hans
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