A speculation tax is a provincial tax targeting properties believed to be held for speculation rather than housing residents. British Columbia's speculation and vacancy tax applies to residential properties in designated areas that are not occupied as principal residences or rented out long-term. Foreign owners and satellite families (where income is primarily earned outside Canada) face higher tax rates than Canadian citizens and permanent residents. The tax aims to increase housing supply by encouraging vacant or underused properties to enter the rental or sales market. Revenue supports affordable housing initiatives. The tax represents one policy tool among several BC has implemented to address housing affordability, alongside foreign buyer taxes and short-term rental regulations.