Introduced in 2018, the BC speculation tax targets the owners of unoccupied residential properties. Individuals, companies, and trusts that own residential properties within the Kelowna and West Kelowna, amongst other geographic regions, are required to pay the tax or otherwise prove that they qualify for an exemption.
One of the ways that an owner of a property can be exempt from the speculation tax is to have a tenant occupy the property for at least six months in a year (the threshold for
2018 was only three months). This is known commonly as the "long term rental exemption" or the "occupied by a tenant exemption".
A question we have frequently received contemplates avoiding the speculation tax through the creation of what can accurately be described as a "paper tenancy".
Please see the attached article for further detail.