Buying a Recreational Property in BC: Bowen, Gulf Islands, Okanagan

A cottage on Bowen, a waterfront retreat on Salt Spring, a summer place on the Sunshine Coast, a lake house in the Okanagan: for many Vancouver families, the second home is where the summers happen. Each area has its own rules, though, and a few of them catch buyers out. Here’s what to know, from official sources.

Bowen Island

Bowen is a 20-minute ferry ride from Horseshoe Bay to Snug Cove. It’s the only island municipality in the Islands Trust area. That means land use follows the Trust’s mandate to “preserve and protect” the islands, alongside the municipality’s own bylaws.

The Gulf Islands

Salt Spring, Galiano, Mayne, the Penders and the other southern Gulf Islands are in the Islands Trust area. The Trust is a special-purpose government created by the Province in 1974 to preserve and protect the islands and waters of the Salish Sea, and it sets each island’s land-use planning. Each island has its own community plan and land-use bylaws, so check them for the specific property. Parts of the islands are also protected as the Gulf Islands National Park Reserve.

If you’re thinking of a dock: the Province has been working on a separate approach to private moorage in the Southern Gulf Islands, so check the current rules for the specific property. Waterfront homes: docks, moorage and what to check

The Sunshine Coast

The Sunshine Coast is reached by a 40-minute ferry from Horseshoe Bay to Langdale, near Gibsons. There’s no road to the rest of the mainland, so the ferry is part of every trip. Plan around busy summer and holiday sailings.

The Okanagan

Lake houses and wine country around Kelowna, West Kelowna, Penticton and the lakes. Two things to know:

The speculation and vacancy tax applies in much of the Okanagan, including Kelowna, West Kelowna, Penticton, Vernon, Lake Country, Peachland and Summerland. A second home that is left empty may be taxed there.
Docks on the lakes are on provincial Crown land and need to meet the Province’s private moorage rules and its dock design criteria for the large Okanagan lakes.

The speculation and vacancy tax: where it applies

The Province’s list of taxable areas includes most of Metro Vancouver (West Vancouver and both North Vancouvers among them), Squamish and Lions Bay, much of the Okanagan, and parts of Vancouver Island. Islands reachable only by air or water are not taxable areas, apart from Vancouver Island itself. That puts Bowen and the Gulf Islands outside it. Neither Whistler nor Gibsons is on the list. Check the Province’s current list for any property you’re considering.

Tax on a second home

A family can designate only one home as its principal residence for each year. Selling a second home may create a taxable capital gain. Speak to your accountant about which property to designate and when.

Before you buy a recreational property

Water and septic. Many island and rural homes rely on wells and septic systems. Have them tested and inspected.
Who regulates the land? The Islands Trust, a regional district or a municipality. The rules for building, renting and subdividing follow from that.
Access. Ferry schedules, road access in winter, and how long it really takes on a Friday afternoon in July.
Renting it out. Short-term rental rules vary by area; check before you count on rental income.
Insurance. Wildfire, flood and remoteness can all affect cost and availability.

Questions people ask

Does the speculation and vacancy tax apply on Bowen Island or the Gulf Islands?

No. Islands reachable only by air or water, other than Vancouver Island, are not taxable areas under the Province’s list.

Does it apply in Kelowna?

Yes. Kelowna, West Kelowna and several other Okanagan communities are on the list.

Skiing, and a second home in Whistler · Request a private consultation

General information, current as of publication, from the Province of British Columbia, the Islands Trust, BC Ferries and the Canada Revenue Agency. It isn’t legal or tax advice; confirm details for a specific property with your lawyer and accountant.

Recreational properties: Bowen, the Gulf Islands, the Sunshine Coast and the Okanagan