Do non-residents pay UHT on phase 2?

Yes! Phase 2 properties can be identified by the hotel name attached to the building, for example, the Westin. These are business income properties and for non-residents, the 28 days of use still applies to avoid the 1% UHT penalty.

The benefit of a phase 2 over a phase 1 is that you can use your phase 2 for up to 56 days and then rent out the rest of the year. Whereas the owner of a phase 1 property is up to 35 days of legal usage, and then must rent it out the rest of the year, if they are renting it out at all. Now that’s 3 weeks of legal use difference.