New to Vancouver? Empty Homes Tax, Speculation Tax & the Filing Trap Every Owner Must Know (2026)

Here is a mistake that costs Metro Vancouver homeowners thousands of dollars, and newcomers are the most likely to make it: you buy a home, you live in it, you assume the "empty home" taxes are not your problem — and then a bill arrives because you never filed a declaration. These taxes are not just for absentee foreign investors. If you own residential property here, you almost certainly have to file every year, even when you owe nothing. This guide explains the three taxes and, more importantly, the filing trap.

The three taxes on your home

There are actually three separate vacancy-related taxes stacked on Metro Vancouver property, run by three different governments:

1. Vancouver Empty Homes Tax (EHT). A City of Vancouver tax of about 3% of your home's assessed value if it sits empty more than six months of the year. Only applies inside the City of Vancouver.

2. BC Speculation and Vacancy Tax (SVT). A provincial tax across designated areas including most of Metro Vancouver. The rate is 0.5% for Canadian citizens and permanent residents, and 2% for foreign owners and "satellite families" (households that earn most of their income outside Canada).

3. Federal Underused Housing Tax (UHT). A 1% federal tax aimed mostly at non-resident, non-Canadian owners, with its own annual return.

The part that catches newcomers: you must file

This is the single most important sentence in this article: being exempt does not mean doing nothing. Owner-occupiers and people who rent their home out long-term are exempt from EHT and SVT — but you must file a declaration each and every year to claim that exemption. If you forget, the property is deemed vacant by default and you are taxed as if it were empty. People lose thousands this way, purely on paperwork.

Where you stand as a PR or work-permit holder

If you are a permanent resident or Canadian citizen living in your Metro Vancouver home as your principal residence, you are generally exempt from all three — but you still file the EHT and SVT declarations. If you are a foreign owner or your household's income is mostly earned abroad, the SVT can jump to 2% and the UHT may apply, which changes the math a lot. Because "satellite family" status turns on where your income is earned, not just your immigration status, this is easy to get wrong.

Why this is worth a phone call

The declarations open early each year and have firm deadlines. Getting your residency status, rental arrangements, and family income situation classified correctly is exactly the kind of thing that is simple when someone shows you and expensive when you guess. A realtor who works with newcomers keeps track of these dates and can flag your risk before a bill lands.

Frequently asked questions

Do I have to pay Empty Homes Tax if I live in my own home? No — your principal residence is exempt. But you must file the annual Empty Homes Tax declaration to claim the exemption. If you do not file, the home is deemed empty and taxed at about 3% of its assessed value.

What is the Speculation and Vacancy Tax rate for a permanent resident? For Canadian citizens and permanent residents it is 0.5% of assessed value, and only if the property is not exempt. Foreign owners and satellite families pay 2%. An annual declaration is required either way.

Am I a "satellite family" if I earn money in Vietnam? Possibly. Satellite-family status depends on how much of your household's total income is reported on Canadian tax returns versus earned abroad. It can apply even to permanent residents, so it is worth confirming your exact situation.

What happens if I forget to file the declaration? The property is automatically deemed vacant and you are billed the tax, even if you actually lived there. You can sometimes appeal, but it is far easier to file on time. Phan can remind you when the windows open.

Not sure which taxes touch you? Ask Phan.

These taxes reward people who understand the deadlines and punish those who assume. Phan speaks Vietnamese and English, works with newcomer owners every year, and can point you to the right declarations and, when needed, an accountant. Call or message Phan before the next filing window closes.