What Happens to the Speculation and Vacancy Tax If a Property Owner Passes Away?
The Speculation and Vacancy Tax (SVT) is a provincial tax designed to encourage property owners to make residential homes available for occupancy — especially in high-demand markets like North and West Vancouver. It targets properties that sit vacant for most of the year, with exemptions for principal residences, long-term rentals, and other qualifying situations.
This annual tax applies to certain residential properties in designated areas of British Columbia. Property owners must complete a declaration each year, confirming how the property was used and their residency status. If an owner doesn’t declare, the tax is automatically applied at the highest rate (up to 2% of assessed value).
But what happens when a property owner dies? Do their spouse or estate still owe the tax? Let’s break it down.
Disclaimer: This article is for general informational purposes only and does not constitute legal, tax, or estate advice. We strongly recommend speaking with a qualified professional about your specific circumstances.
Does the Spouse or Estate Owe the Speculation Tax After a Death?
In most cases, no — for a period of time.
If a property owner dies, all owners on title at the time of death are exempt from the Speculation and Vacancy Tax for the year of death and the following calendar year. That includes the surviving spouse (if they were a co-owner) and the executor or estate manager (even if they weren’t previously on title).
Example:
If a married couple co-owns a vacation home and one spouse dies in 2024, the surviving spouse would be exempt from the tax for both 2024 and 2025.
Who Needs to File the Declaration?
Even though a tax payment may not be required, a declaration still must be filed every year for each property owner on title.
- If the deceased was the only owner: The executor or administrator of the estate is responsible for completing the annual declaration on behalf of the estate until it’s transferred or sold.
- If the deceased was one of multiple owners: The surviving co-owners must still declare. The status of the deceased owner will depend on the type of ownership and whether title has been updated.
It’s important to note that a power of attorney ends upon death. After that, only the executor or estate representative has legal authority to act.
What If the Property Was Already Vacant?
Even if a property was vacant before the owner’s death, the exemption for death typically still applies for two tax years. This gives the estate or surviving spouse time to manage or sell the property without being penalized for vacancy during what’s often a difficult and transitional period.
That said, if the property is not transferred or sold after the exemption period ends, the usual rules will apply — and tax may be owed going forward.
Tips for North and West Vancouver Property Owners
In areas like North and West Vancouver, where inherited estates are common, this tax is something every homeowner and estate manager should be aware of. It can affect:
- Estate planning and probate
- Jointly held properties
- Selling inherited real estate
- Refinancing or changing title post-death
Declaring the tax correctly — even if no payment is required — helps avoid late fees, compliance issues, or confusion during property transfers.
Need Help Navigating Your Situation?
If you’re a surviving spouse, executor, or family member managing an estate, understanding how the Speculation and Vacancy Tax applies can feel overwhelming — especially during a difficult time. While we can’t provide tax advice, our real estate team can help you access the right resources and point you in the right direction.
We regularly assist clients in North and West Vancouver with estate property sales and can help you understand how a property’s ownership and use may influence your next steps.
Thinking about selling or simply want to better understand your options? Contact us — we’re here to support you through the process.