Tax on Unproductive Use of Canadian Housing by Foreign Non-resident Owners

Published: May 13, 2021
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Abstract

In Budget 2021 the government of Canada proposed to introduce a national 1% tax on the value of non-resident, non-Canadian owned residential real estate considered to be vacant or underused. The tax is planned to take effect on January 2022 and will require all owners of residential property in Canada, other than Canadian citizens or permanent residents to file a declaration for the prior calendar year in respect of each Canadian residential property they own. Depending on circumstances, owners may be eligible to exemptions from the tax in respect of a property for the year. An exemption may be available, for instance, where a property is leased to one or more qualified tenants in relation to the owner for a minimum period in a calendar year.