How 

Vancouver’s 

Empty 

Homes 

Tax 

Could 

Impact 

Your 

Renovation 

Plans 

in 

2025 

Vancouver homeowners have faced the Empty Homes Tax (EHT) for several years—but recent changes to the program are catching many off guard. If you're planning a major renovation or currently own a vacant property you intend to improve, this tax could affect your timeline, costs, and even the urgency of your project.

Let’s break down what the EHT means for you in 2025—and how working with an experienced construction team can help you avoid penalties and make the most of your property investment.

What Is the Empty Homes Tax, and What Changed?

The Empty Homes Tax was introduced by the City of Vancouver to address housing shortages by discouraging underused residential properties. Originally set at 1% of the property’s assessed value, the rate has since increased—reaching 5% in 2024, with ongoing discussions around tightening exemptions.

For 2025, homeowners must be especially cautious. If your property is vacant for more than six months (with some exemptions), you may be liable. Renovation-related vacancies do not guarantee exemption, especially without the right documentation or permits.

🧱 Planning a large-scale renovation or build? You’ll need more than just a construction schedule—you’ll need proof of legitimate work and timeline transparency to qualify for exemption.

Renovating a Vacant Property? Here’s What to Watch Out For

If your home is temporarily unoccupied due to renovations, it may be exempt from the EHT—but only if the work meets the City's definition of "major renovation." That means:

• Valid development or building permits are in place
• Construction is active and ongoing
• Delays aren’t due to the owner’s inaction

If the City deems your project too minor, or if the work is delayed, you could be taxed—even while renovating. That’s why working with a reputable construction team that manages permits, inspections, and scheduling is crucial.

🛠️ At Square One Construction, we manage timelines and permitting meticulously to ensure your renovation stays compliant with city requirements. Learn more in our blog: How to Avoid a Construction Nightmare

Strategies to Stay Compliant and On Track

The key to avoiding a costly EHT bill is early, professional planning. Here's how we help clients stay on the right side of city regulations:

✅ Start with a Clear Timeline: We'll help you establish a realistic construction schedule that aligns with permit lead times and availability of trades.

✅ Secure the Right Permits Early: We manage your permit applications and help you avoid unnecessary delays that could void your exemption status.

✅ Keep the City Informed: From development sign-offs to building inspections, we track every milestone so your project meets the City’s definition of an “active renovation.”

Want to know how long your renovation might take? Check out From Permit to Punch List: How Long Does a Major Renovation in Vancouver Take in 2025?

Partner with Professionals Who Know the Rules

In a city like Vancouver, where policy and real estate move fast, it pays to work with a construction company that understands the full picture. At Square One Construction, we don’t just build—we navigate.

Whether you’re remodelling a single room or planning a full rebuild on a vacant property, our team will help you protect your investment and stay compliant every step of the way.

📧 Email: info@squareoneconstruction.ca
📞 Phone: (778) 400-7948
🔗 See more insights on our blog

Useful Reads:

• Renovation vs New Construction: Which Offers Better Customisation?
• How Much Does It Cost to Build a New Home in Vancouver?
• Avoid Painful Regrets by Considering These 6 Construction Tips