Proposed Non-resident Property Owners Tax
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.