Vancouver Empty Homes Tax, BC Foreign Buyer Ban, and Underused Housing Tax: How They Differ

If you're buying property in British Columbia — especially in Vancouver — you'll encounter references to at least three separate regimes that target foreign ownership, vacant properties, and non-Canadian buyers. They're frequently confused with one another because they all address similar policy goals, but they operate at different levels of government, apply in different regions, and have distinct rules for who pays, how much, and when.

Getting these right matters whether you're a domestic buyer navigating what applies to you, or someone with ties to another country trying to understand your actual exposure.

The Vancouver Empty Homes Tax (EHT)

The Vancouver Empty Homes Tax is a municipal levy imposed by the City of Vancouver under its own bylaw authority. It applies only within the boundaries of the City of Vancouver proper — not Burnaby, Richmond, Surrey, or other Metro Vancouver municipalities.

Who pays it: Property owners within Vancouver city limits whose residential property is "empty" — defined as not occupied as a principal residence by the owner or a tenant for at least six months of the calendar year.

Current rate: 3% of the property's assessed value per year. On a $900,000 assessed condo, that's $27,000 per year if the property is considered empty.

How it works: Every residential property owner in Vancouver must submit an annual declaration confirming whether their property was occupied or vacant in the previous calendar year. The declaration is due in February. Failure to file is treated as a vacancy — the 3% tax is automatically assessed.

Key exemptions:

• Principal residence of the owner for six months or more
• Rented to tenants for six months or more (in periods of at least 30 consecutive days)
• Property under renovation or construction with the required permits
• Owner was in hospital or long-term care
• Death of a registered owner

Who needs to pay attention: Domestic buyers purchasing a condo in Vancouver as an investment property or a second home need to plan for this. If you live outside Vancouver and use the property less than six months of the year, the 3% annual tax applies unless you rent it out to a qualifying tenant.

The EHT is separate from provincial property tax, separate from the BC Speculation and Vacancy Tax, and applies at a different rate and administration process.

The BC Speculation and Vacancy Tax (SVT)

The SVT is a provincial annual tax that applies in designated urban regions across BC — not just Vancouver. The regions include Metro Vancouver, the Fraser Valley, the Capital Regional District (Victoria area), the Nanaimo Regional District, the Central Okanagan, and a set of newly added municipalities effective 2024-2025 including Kelowna-area communities and Vancouver Island communities like Courtenay and Parksville.

For Canadian citizens and permanent residents who are BC residents, the SVT rate as of 2026 is 1% of assessed value (increased from 0.5% in 2026). For foreign owners and "satellite families" (households where more than 50% of worldwide income is earned outside Canada), the rate is 3% of assessed value.

A BC resident tax credit offsets the tax for secondary properties worth up to $400,000, and the credit was doubled to $4,000 in 2026 to align with the rate increase.

Over 99% of BC residents are exempt because their property is their principal residence. But owners of secondary or investment properties in the designated regions need to file annual declarations, even if they're ultimately exempt.

The critical distinction from the EHT: A property owner in Burnaby, Surrey, or Coquitlam owes the provincial SVT but not the City of Vancouver's EHT. A property owner in Vancouver owes both — they apply simultaneously and must both be declared separately.

For a deeper dive into the SVT, its rates, and exemptions, see bc speculation and vacancy tax.

The Underused Housing Tax (UHT) — Now Effectively Suspended

The Underused Housing Tax was a federal 1% annual tax on the assessed value of vacant or underused residential property owned directly or indirectly by certain foreign nationals. It was introduced in 2022 and was one of the most administratively burdensome taxes ever imposed on Canadian property owners, requiring even Canadian citizens holding property through corporations or trusts to file annual returns.

The critical 2026 update: On March 26, 2026, the federal government passed Bill C-15, which significantly amended the Underused Housing Tax Act. Under these changes, affected owners are no longer required to file an annual return or pay the UHT for the 2025 calendar year and subsequent years.

However, the obligation to file and pay UHT still applies to the 2022, 2023, and 2024 calendar years. If you are a non-Canadian owner, a trustee, or a partner who held a residential property during those years and didn't file, late penalties and interest can still apply. Canadian citizens who held properties through corporations or trusts in 2022-2024 and didn't file may also have outstanding obligations.

Going forward from 2025 onward, the UHT is effectively dormant for almost all property owners. The SVT remains the primary provincial tool for taxing vacant properties.

The Federal Foreign Buyer Ban

The Prohibition on the Purchase of Residential Property by Non-Canadians Act — commonly called the Foreign Buyer Ban — is a separate federal law from the UHT. It prohibits non-Canadians from purchasing residential property containing three or fewer dwelling units anywhere in Canada.

The ban was originally introduced for 2023-2024 and has been extended through January 1, 2027.

Who is prohibited: Non-Canadians — defined as individuals who are neither Canadian citizens nor permanent residents, plus foreign-controlled private corporations.

Who is permitted to buy despite being non-Canadian:

• Work permit holders with at least 183 days of remaining validity on their permit at the time of purchase (one property maximum)
• International students under strict conditions: filed Canadian taxes for five years, present in Canada at least 244 days per year over those five years, and purchase price under $500,000
• Purchases of vacant land zoned for residential or mixed-use development
• Properties with four or more units (not covered by the ban)
• Properties outside Census Metropolitan Areas and Census Agglomerations (rural/recreational areas)

This is separate from the BC 20% Foreign Buyer Additional PTT. The foreign buyer ban is a prohibition on purchasing. The BC additional property transfer tax is an additional cost applied at closing for purchases by foreign nationals in designated regions (Metro Vancouver, Fraser Valley, Capital Regional District, Nanaimo, Central Okanagan). The 20% surcharge applies to foreign nationals who are legally allowed to buy — primarily those on work permits who are exempt from the ban but still subject to the surcharge.

Work permit holders under BC's Provincial Nominee Program (BC PNP) are exempt from the 20% additional PTT when purchasing their principal residence, recognizing the policy goal of retaining skilled workers.

A Quick Reference: Which Tax Applies Where

Most first-time buyers who are Canadian citizens or permanent residents purchasing their principal residence in BC won't trigger any of these regimes. The SVT requires an annual declaration but grants a principal residence exemption. The EHT is relevant only to investment or secondary properties in Vancouver. The foreign buyer ban and the 20% additional PTT are relevant only to non-Canadian buyers.

If you're a newcomer, on a work permit, or buying with a co-purchaser who isn't a Canadian citizen or PR, it's worth working through your specific situation with a notary or real estate lawyer before making an offer.

For a complete overview of the BC first-home buying process, programs, and costs — including how PTT and closing costs are calculated for different buyer profiles — the British Columbia First-Time Home Buyer Guide covers everything in detail.

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