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Proposed Non-resident Property Owners Tax

Proposed Non-resident Property Owners Tax


Image by F. Muhammad from Pixabay

Proposed Non-resident Property Owners Tax

Date: August 23, 2021
Source: RSM Canada LLP
Contributors: Maria Severino and Clara Pham

In Budget 2021, the federal government proposed a vacant homes tax with the stated intention of making housing more affordable for Canadian residents by deterring non-residents from passively investing their wealth in Canadian real estate.

Proposed to be effective on Jan. 1, 2022, the annual 1% UHT would be levied on vacant or underused residential real estate owned by non-residents of Canada.

A legal owner of the residential property in Canada would be required to pay UHT if the following two conditions are satisfied:

  • The owner is required to file an annual declaration in respect of the property for the calendar year; and
  • The owner is not eligible to claim an exemption in respect of their interest in the property for the calendar year.

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