Speculation Tax

Primary, for speculation tax is considered the address you reside at the longest in a calendar year.

Primary Residence

 You do not need any rentals or any specific duration of rentals to be exempt from speculation tax

To be exempt:

Must rent min. 6 months/calendar

year in 1 month min periods

(Does not have to be consecutive)   

Non Primary Residence

Time owner stays in home DOES NOT count towards those months.

(Must be made up of rentals).

Short-term rentals for periods of less than one month do not count towards the six-month total.

After 6 months of rentals have been met, you can rent short term for the duration of that calendar year. (Subject to strata/city licensing restrictions).

If requirements not met:

2% for foreign owners

and satellite families

(Satellite Family: An individual or spousal unit (even if Canadian Citizens or permanent residents of Canada) if majority of their total worldwide income for the year is not reported on a Canadian personal income tax return

0.5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family 

Licensing

Can rent entire home 3-4x/year short term (under 30 days). Or up to 2 beds in home while owner is living in the home

 Must rent long term, 30 days or

more or not at all.

No license required

 $150 for license 

City Of Victoria Condos 

Primary Condo

Short-term rental cannot occupy an entire self-contained dwelling unit, except occasionally while the operator is away.

Non Primary Condo

If renting only long term (30 days or more), no license is required

$1500 for license can rent out as much as you like short term as long as you meet the requirements.

 $150 for license 

Can rent entire space 3-4x/year short term (under 30 days). Or up to 2 beds in home while owner is living in the home

Requirements: The condo is zoned for transient use. However, if the strata is not in compliance, the strata always has final say. 

Primary for licensing is considered the address you reside at for a min. of 6 months in a calendar year.

FAQ'S

Am I required to have a license to rent my property?


The requirement for a license depends on a variation of factors including your specific property type and any specific strata or municipal restrictions. The city of Victoria council has recently approved a new bylaw governing short-term vacation rentals in the city. A grandfather clause may be in effect for some property owners who already legally rent out short term units as a business. Please contact your municipality for further clarification if required.




City Of Victoria Bylaws


City of Victoria Proper: What is classified as "short-term": Anything 30 days or less. You can only rent up to 2 rooms of a property and cannot rent a self contained unit unless over 30 days. Grandfathered Zones: There are some grandfathered zones. You would need to contact the city of Victoria's zoning department to verify or complete the application. If you are grandfathered you will be exempt, if not your application would be declined. Short Term Rentals (under 28days): Principle residence that is rented out ocassionally or whileon vacation (2 rooms max) licence cost = $150/ year Non principle residence licence cost = $1500 year Application Process: Apply for a business license and get approved. You can apply online or go in to pick-up an application. RESIDENTIAL APPLICATION STRATA APPLICATION Your license # must to be displayed on your listing (Please provide us with this information to add) MORE INFO Fines/Violations: If you are operating and advertising without a valid business license, the first strike is a letter requesting a business licence be obtained. Not less than $100 and not more than $10,000, depending on the violation. Operating with no license $500 Failure to include business license number in advertising $250 Failure to designate a responsible person to manage the property when operator is away $350 You can be fined everyday in violation up to $10,000 ADDITIONAL CITY OF VICTORIA SHORT-TERM RENTAL INFORMATION This information was provided to us by the respective municipalities. If you require any additional information or clarification, we advise that you contact your municipality directly.




Oak Bay Rental Bylaws


Short-term rentals are not permitted. Oak Bay is zoned for 'single family dwellings' only. 2 Boarders are permitted as long as there is common access throughout and owner resides in the home. The only rentals permitted are 30 night minimum only. If there is a formal complaint a bylaw officer would come by to investigate and determine further recourse. See Part 4 4.1.2 BYLAW This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




Esquimalt Rental Bylaws


No specific 'short-term' rental bylaws Determined by the permitted use and zoning of your property on title. No 'official' regulations, however, it is required to be licensed to operate a bed and breakfast. If there is a formal complaint a bylaw officer would come by to investigate and determine further recourse. See section 36.1 (PG 41) BYLAWS This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




View Royal Rental Bylaws


Short-term rentals are not permitted. 30 day min. Bed and breakfast licence required for detached, owner occupied, single family dwellings only (no condos). Must meet guidelines as outlined in section 4, 4.3 of the bylaws: BYLAWS Formal complaints would be shut down and could be fined daily up to $500/day. This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




Landford Rental Bylaws


No specific 'short-term vacation rental' bylaws Guidelines are: You can rent out your entire home for short term. You can rent a suite in your home if it is a proper "Legal suite" as long as you also reside in the home or you can rent out bedrooms in a home if you also reside in the home, which would be considered a bed and breakfast and would require a licence. If there is a formal complaint a bylaw officer would come by to investigate and determine further recourse. See part 1. Bed and breakfast
BYLAWS
This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




Colwood Rental Bylaws


No specific 'short-term vacation rental' bylaws Section 5. 1.01 8. Not more than 4 boarders or lodgers in a dwelling unit that does not contain a secondary suite, provided that no dwelling unit shall be occupied by more than four unrelated persons. BYLAWS This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




Highlands Rental Bylaws


No specific 'short-term vacation rental' bylaws Accommodation for the temporary lodging of the traveling public, not used as a dwelling unit for any residential use, and for this purpose “temporary” means the accommodation of any particular person for not more than 180 days in any calendar year, not more than 29 of which may be consecutive. BED AND BREAKFAST USE means a home-based business which provides for temporary accommodation of transient guests and may provide breakfast as the only meal to be served for those guests See section 1. Bed & Breakfast & 3.5 g) - j)
BYLAWS This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




Metchosin Rental Bylaws


No specific 'short-term vacation rental' bylaws Boarder: means an individual other than a member of the family occupying the dwelling unit or a part thereof who, for a consideration, is furnished sleeping accommodations and may be furnished meals or other services as part of the consideration; excludes the preparation of meals in sleeping areas. Allow: "Recreational Cabin means the use of a building providing temporary accommodation to the vacationing public which is limited to a gross floor area of not more than 75 m 2 (807 ft2 ), and not more than 2 bedrooms." Bed and breakfast: means a Home Business within a dwelling unit that provides transient tourist accommodation in which sleeping units are rented on a short-term basis, and may include the provision of a breakfast meal served on the premises. See: Page 7. Part 1 1. Boarders 1. d) recreational cabin. BYLAWS This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




Sooke Rental Bylaws


No specific 'short-term vacation rental' bylaws BED AND BREAKFAST means the accessory use of a single family dwelling or an accessory building for temporary overnight tourist accommodation of the travelling public, but which does not provide meals, other than breakfast, for guests; BED AND BREAKFAST UNIT means a sleeping unit for accommodating overnight guests with a bathroom or a shared bathroom, and may include a sitting room or a shared sitting room but specifically excludes kitchens; Recreational Cabin means the use of a building providing temporary accommodation to the vacationing public which is limited to a gross floor area of not more than 75 m 2 (807 ft2 ), and not more than 2 bedrooms. See page 6/7/12 Bed and Breakfast & Recreational Cabin BYLAWS This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




Saanich Rental Bylaws


Does not allow short-term rentals. 30-day or more rentals permitted only if classified and licensed as a bed and breakfast. Must be in same dwelling unit the owner resides in, single family not multi-family zoned, owner must be present. Up to 430sqft (1 larger bedroom or 2 smaller bedrooms). Bed and breakfast application process: Must apply for a business licence. Part of that process is the fire department coming for inspection and approval by planning/fire department. If there is a formal complaint, subject to a $200/day fine See Section 5, 5.5, (h) of bylaws: BYLAWS Parking for rentals information: Section 7. 1.4 This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




North Saanich Rental Bylaws


Rentals over 30 days only. If there is a formal complaint, a bylaw officer would come by to investigate and determine further recourse or issue an injunction. It is required to be licensed to operate a bed and breakfast. BYLAWS This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




Central Saanich Rental Bylaws


No specific 'short-term vacation rental' bylaws 30 day min. "Bed and Breakfast" means the commercial use of a single‐family residential dwelling for the overnight accommodation of travellers and the serving of a breakfast meal only by an occupant of the dwelling unit in the dwelling. See page 1. Bed and breakfast
BYLAWS This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




Sidney Rental Bylaws


No specific 'short-term vacation rental' bylaws 30 day min . Short Term if no other occupied suites detacthed or attached. Owner must primarily occupy unit. Page 18. 4.1.11 Notwithstanding any other section of this bylaw, one (1) Short Term Rental is permitted on a lot or a strata lot, subject to the following: i. The Short Term Rental use is located in a dwelling unit on a lot or strata lot that is within the areas designated as Neighbourhood Residential (RES-1), Intensive Single-Family Residential (RES-2), Multi-Family Residential (RES-3) and Downtown Commercial (COM-1) in Schedule C of the Town of Sidney Official Community Plan, and also the area bounded by Beacon Avenue West, Galaran Road, Henry Avenue West and Highway 17; ii. The lot or strata lot in which the Short Term Rental use is located is continuously occupied by a permanent resident, whether it be the owner or a tenant who has a valid and subsisting tenancy agreement; iii. A Short Term Rental is not permitted on a lot or strata lot where any of the following are located on the same lot: a secondary suite or detached secondary dwelling occupied by a long-term tenant, or an active boarding or bed and breakfast use. iv. No more than two bedrooms in a dwelling unit shall be used for the purposes of a Short Term Rental; and v. No separate or additional cooking facilities or other such facilities for the keeping or preparation of food are provided within any bedroom intended for Short Term Rental use. Bed and Breakfast: The use of a single-family dwelling for the provision of lodging or lodging and meals to the travelling public for compensation where the single-family dwelling is occupied by the owner and no more than two bedrooms within the dwelling are used or intended to be used for such lodging. Boarding: The use of a single family dwelling for the provision of residential lodging, with or without meals, for compensation where the rooms used for such lodging do not include a separate kitchen and no more than two bedrooms within the dwelling are used for such lodging. See page 2 BYLAWS This information was provided to us by the respective municipality as outlined. If you require any additional information or clarification, we advise that you contact your municipality directly. Short-term rentals are considered as anything under 30 days




How can I declare my Speculation Tax?


A home that is not a principal residence must be rented for at least six months per year (does not have to be consecutive) to be exempt from the speculation and vacancy tax. Short-term rentals for periods of less than one month do not count towards the six-month total. Principle residence definition: The address you reside the longest at in a calendar year. If the home IS your principle residence you do not need any rentals or any specific duration of rentals to be exempt from speculation tax. If you DO NOT reside in the home at all and the home is not considered your principle residence you need 6 month rentals in 1 month min, periods per calendar year to be exempt. If the owner stays in the home at any time, it DOES NOT count towards those months, they must be made up of rentals. After the 6 months of 1 month min. rentals have been met, you can then rent short term for the duration of that calendar year, There is also an exception called "Away from home for other reasons" that can be used once every 10 years so you do not get dinged for not meeting the rental quota. Information from a rep at Service BC Mar 5th, 2020. -- For 2019 and subsequent years, the tax rate is:

  • 2% for foreign owners and satellite families
  • 0.5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family
(This is taxed on the property’s assessed value for all properties subject to the tax) The speculation and vacancy tax applies based on ownership as of December 31 each year. A speculation and vacancy tax year is the same as a calendar year. Tax levied on December 31 is due the following July. For example, for a property owned as of December 31, 2018, the 2018 tax rate of 0.5% applies and the tax is due on July 2, 2019. LEARN MORE EXEMPTIONS WHO DOES IT APPLY TO? FAQ'S All residential property owners in the designated taxable regions must complete an annual declaration for the speculation and vacancy tax. Where there are multiple owners of a home, each owner must complete a declaration. For example, if you own a home with your spouse or relative, both you and your spouse or relative must complete a declaration. DECLAIRE NOW If you haven't received your letter yet, you can contact: Toll-Free: 1 (833) 554-2323 Outside North America: 1 (604) 660-2421





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