Speculation and Vacancy Tax
The Speculation and Vacancy Tax (SVT) is a BC tax on vacant residential properties, encouraging rentals and funding affordable housing.
September 30, 2025
What is Speculation and Vacancy Tax?
The Speculation and Vacancy Tax (SVT) is a provincial tax in British Columbia targeting property owners who leave residential properties vacant for extended periods. It applies to both Canadian and foreign owners, with exemptions for primary residences, certain rentals, and qualifying circumstances.
Why Speculation and Vacancy Tax Matters in Real Estate
The SVT matters in real estate because it aims to increase available housing supply by discouraging property hoarding and vacancy. It also generates revenue that funds affordable housing initiatives in the province.
Example of Speculation and Vacancy Tax in Action
An investor owns a condo in Vancouver that sits empty for most of the year. They must pay the SVT unless they qualify for an exemption, such as renting the unit for a minimum number of months annually.
Key Takeaways
- Applies to vacant residential properties in BC.
- Targets both Canadian and foreign owners.
- Encourages rentals and increases housing supply.
- Exemptions include principal residence and qualifying rentals.
- Revenue funds provincial affordable housing initiatives.
Canadian respondents were more likely to expect an undersupply of development/redevelopment equity capital (63%) than debt capital (46%) in 2027. These are survey expectations, not measured financing volumes. Source: PwC and ULI, Emerging Trends in Real Estate 2027, pp. 136–137. Original chart.
Toronto census metropolitan area housing starts fell from 37,718 units in 2024 to 26,087 in 2025, a 30.8% decline (rounded to 31%). Starts measure construction begun, not completed homes. Source: CMHC, as cited in PwC and ULI, Emerging Trends in Real Estate 2027, p. 145. Original chart.
Illustrative calculation: a $4.5-million value ceiling versus income-based capacity of about $4.25 million at 4%, $3.62 million at 5% and $3.13 million at 6%. Assumes 50-year amortization and 1.15 debt coverage.
Source: Department of Finance missing-middle backgrounder and Budget 2026 Chapter 3, November 5, 2026. Fiscal-year funding starts are not home-completion dates.
