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Non-Resident: Underused Housing Tax (UHT)

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UHT and Non-Residents Buying Whistler Real Estate

What is UHT on a Whistler property? The Underused Housing Tax Act is the Government of Canada’s way to find out who owns property in Canada, and track usage. For non-residents the UHT applies to all types of ownership. Therefore, each non-resident owner must file an annual UHT return. The UHT ACT requires a non-resident owner who has their property title in their personal name to use the property for 28 days, and if that happens there’s no UHT on the property. The UHT is 1% of the value of the property.

The non-resident owner of Whistler property can legally use their Phase 1 rental property for 28 days while maximizing nightly revenue. For more information, read the Non-Residents: Underused Housing Tax page on this site.

Note: the author of this blog is a realtor, not an accountant. Researching this topic was like going down a rabbit hole, so only the basics have been noted. It is essential to talk with your Whistler accountant.

Why Do Non-Residents File An Annual UHT Return?

The Government of Canada’s (GOC) wants to track how much property is owned by non-residents and if it is used for personal or income purposes, or sits vacant. Therefore, each non-resident owner must file an annual UHT return. The Underused Housing Tax (UHT) Act is the Government of Canada’s (GOC) way to compile data and generate tax income.

A Non-Resident is an Affected Owner

From the Government of Canada website:

  • As an affected owner (non-resident), you must file an annual UHT return by April 30th. This document tells the GOC how much you have used your property.
  • Usage is based on the previous calendar year.
  • Each affected owner of the property must file their own UHT return.
  • If you have used your property a minimum of 28 days then you file the UHT return, and you do not pay any UHT. You are UHT exempt.
  • If you have not used your property a minimum of 28 days, you file the UHT return and “write a cheque” for your percentage of ownership x 1% of the market value of your property.

What is the Good News and Bad News for Non-Residents and UHT?

Good News: Whistler is exempt from the Government of Canada’s (GOC) ban on foreign investment in Canadian real estate. Non-residents are welcome to invest in Whistler.

What happens if I share ownership of a Whistler property and I can’t use it for 28 days?

Good News: Each affected owner pays the percentage of their ownership if they do not use the property for 28 days. The total for a property is 1% UHT. For a full description and examples of how this works, see the page on Non-Resident and the Underused Housing Tax (UHT)

Can a Non-Resident Maximize the Nightly Rental Income and Still Use their Property?

Good news: Each person who wants to buy a property zoned for nightly rental (Phase 1), rent out nightly, and use it themselves can do so with limitations. The owner(s) can use their property for 28 days each without repercussions from the Canada Revenue Agency (CRA). The CRA has a 10% restriction on personal use if the intent of your phase 1 property is to generate revenue. Therefore, use is now between 28 days and 35 days. This is good news. For a full description and examples of how this works, see the page on Non-Resident and the Underused Housing Tax (UHT)

Canadian Citizens are Not Non-Residents When it Comes to UHT.

Good news: Canadian Citizens who reside outside of Canada for UHT purposes are treated as exempt from UHT. This is different from GST restrictions where a Canadian Citizen who resides outside of Canada is treated as a non-resident.

I Own Vacant Land, Do I Pay UHT?

Good news: Affected owners who own vacant land are exempt from UHT. However, as a non-resident owner, you file a UHT return annually.

Good news: Affected owners who are building a home are exempt from UHT. The property must be habitable before UHT will be considered. You will file an annual UHT return.


More to Understand about UHT

There is a page on this site dedicated to explaining the UHT Act and how it pertains to non-resident buyers and owners. Please click through to Non-Resident: Underused Housing Tax for more great information that may be simpler to understand as an overview than the GOC website.

Next Steps

Buying real estate in Whistler, whether ski-in/ski-out or not, is a smooth process when working with an experienced Whistler real estate agent who follows the rules. Everything in real estate, except for writing the contract and the negotiation is a process. Experienced realtor, and skilled negotiator, Marion Anderson will work with you directly from start to finish. No assistants are involved.

If you think I would be a good fit to work with you and your family, and you are not already working with a Whistler realtor, please contact me. I look forward to hearing from you.

It’s a Good Life in Whistler!

Marion

Marion Anderson Personal Real Estate Corporation

marion@WhistlerSkiinSkiout.com (604) 938-3885