Empty or Rented: The Yearly Numbers for a Foreign Owner of a Coquitlam House
A foreign owner of a Coquitlam house makes a decision every year that decides whether BC's vacancy tax is owed: whether the house sits empty or has a tenant. Below are the numbers for both choices on a new house assessed at $2,400,000, using the rules as they stood on 9 November 2026.
The empty house
BC's speculation and vacancy tax applies in Coquitlam. For foreign owners and untaxed worldwide earners, the rate is 3% of assessed value for 2026 and 4% for 2027.
| Year | Rate for a foreign owner | Tax on a house assessed at $2,400,000 |
|---|---|---|
| 2026 | 3% | $72,000 |
| 2027 | 4% | $96,000 |
The year you buy is covered by its own exemption, if you paid property transfer tax. From the second year, an empty house pays the full amount. Three empty years at the 2027 rate come to $288,000.
The rented house
The province's exemptions page lists an exemption where a tenant, including a relative, occupies the home for at least six months of the calendar year and the tenancy requirements are met. In a year with a qualifying tenant, the vacancy tax on this house is zero.
The rent is then taxed. The Canada Revenue Agency's guide T4144 says the payer or agent, such as a property manager, must withhold 25% of the gross rent paid to a non-resident. The agent must be a resident of Canada. With an approved Form NR6, the agent withholds 25% of the net rent instead.
The numbers side by side
This example uses rent of $5,000 a month for a full year and $40,000 a year of expenses that an accountant agrees can be claimed. Both figures are for illustration, and your own will differ.
| For 2027 | Empty | Rented, default withholding | Rented, with approved NR6 |
|---|---|---|---|
| Rent received | $0 | $60,000 | $60,000 |
| Vacancy tax | $96,000 | $0 | $0 |
| Tax withheld on rent | $0 | $15,000 | $5,000 |
The final tax on the rent can differ from the amount withheld. With NR6, a section 216 return is required by 30 June of the next year, and it settles the tax on the net income. Without NR6, the 25% on gross rent is usually the final tax.
What the table leaves out
The table counts taxes and rent. A rented house has other costs and limits that belong in the decision.
- Management. An agent in Canada collects the rent and handles the withholding, and charges a fee.
- Wear. A tenant uses a new house, and repairs during the warranty period follow the warranty's own rules.
- The tenancy. A tenant has rights under BC's Residential Tenancy Act, including rules on how and when the tenancy can end. If you plan to move in or sell, talk to a lawyer before you sign a lease.
- Short stays. BC's principal residence requirement applies in Coquitlam and limits rentals of fewer than 90 consecutive days to the host's own principal residence plus one suite. A house owned from abroad is not that.
A relative as the tenant
The exemption includes a non-arm's length tenant, such as a relative. A parent, child or sibling living in the house for six months or more can meet it, as long as the tenancy requirements are met. Put the tenancy in writing and keep a record of the rent paid. The rent is still income paid to a non-resident, so the withholding rules in T4144 apply to it.
Making the choice
Before you buy, decide how the house will be used in its first three years, and put the tax for that choice into your budget. If it will sit empty, plan for the vacancy tax at the foreign owner rate. If it will be rented, set up an agent, Form NR6 and the tenancy before the first tenant moves in.
The yearly taxes chapter and the renting out chapter of our foreign buyer guide explain each rule in full. To talk through a specific house, contact Michael.
Frequently asked questions
How much vacancy tax does an empty Coquitlam house cost a foreign owner?
BC's speculation and vacancy tax rate for foreign owners is 3% of assessed value for 2026 and 4% for 2027. A house assessed at $2,400,000 with no exemption costs $72,000 for 2026 and $96,000 for 2027. For a Canadian citizen or permanent resident who is not an untaxed worldwide earner, the rate is 1%, or $24,000 on the same house.
How long must a tenant live in the house to avoid the vacancy tax?
At least six months of the calendar year. The province's exemption page lists a tenant, including a non-arm's length tenant such as a relative, who occupies the owner's home for at least six months of the year when the tenancy requirements are met. Read those requirements before relying on them, and keep the tenancy agreement and rent records.
How much tax is withheld when a foreign owner rents out a Coquitlam house?
The Canada Revenue Agency's guide T4144 says the payer or agent must withhold 25% of the gross rent paid to a non-resident. On rent of $5,000 a month, that is $15,000 a year. With an approved Form NR6, the 25% is withheld on net rent after expenses, which on $20,000 of net rent is $5,000.
Is renting always cheaper than leaving the house empty?
Not always, and the answer depends on the numbers for the house. Renting brings costs of its own: a property manager, repairs, wear on a new house, and the time limits that come with a tenancy. In this article's example, the exemption is worth $96,000 for 2027, and the tax withheld on rent is $15,000 by default or $5,000 with an approved Form NR6.
Can a foreign owner rent out the house on short stays instead?
Not in Coquitlam, in practice. The province's short-term rental principal residence requirement applies in Coquitlam. It limits rentals of fewer than 90 consecutive days to the host's principal residence, plus one secondary suite or accessory dwelling unit on the same property. A foreign owner living abroad does not make their day-to-day home in the house.
Can a relative live in the house to meet the vacancy tax exemption?
Yes, as a tenant. The province's tenancy exemption includes a non-arm's length tenant, such as a relative, who occupies the home for at least six months of the year, when the tenancy requirements are met. Sign a written tenancy agreement, record the rent paid, and declare the exemption by 31 March for the year before.
When is the section 216 return due for a foreign owner who uses NR6?
By 30 June of the year after the rent was paid. The Canada Revenue Agency says that if it approved your Form NR6 for a year, the section 216 return for that year is due by 30 June of the next year. If you miss it, the election is invalid and non-resident tax applies to your gross rent.
Does the year of purchase need a tenant to avoid the vacancy tax?
No. The province lists an exemption for a newly bought property in the year of purchase, where the owner paid property transfer tax or qualified for an exemption from it. A foreign buyer pays property transfer tax, so the first year is covered. From the second year, the owner needs another exemption, such as a tenant for six months, or pays the tax.
Sources
- Province of British Columbia, Speculation and vacancy tax rates (updated July 3, 2026, accessed November 9, 2026)
- Province of British Columbia, Speculation and vacancy tax exemptions for individuals (updated July 28, 2026, accessed November 9, 2026)
- Canada Revenue Agency, T4144 Income Tax Guide for Electing Under Section 216 (accessed November 9, 2026)
- Canada Revenue Agency, Electing under section 216: when to file a return (modified January 20, 2026, accessed November 9, 2026)
- Province of British Columbia, Short-term rental principal residence requirement (updated September 21, 2026, accessed November 9, 2026)
