Not only has the Canadian Government implemented a Prohibition on the Purchase of Residential Property by Non-Canadians for a four year period ending Dec 31st 2026…
The government is also introducing an Underused Housing Tax (UHT) that is effective since the calendar year 2022 (Underused Housing Tax – Canada.ca)
The UHT is a national, annual one per cent tax on the value of vacant and underused residential property in Canada owned directly or indirectly by non-resident, non-Canadians.
Any non-resident, non-Canadian who owns an underused or vacant residential property in Canada as of December 31 will have to file a UHT return for the property by April 30 the following year. Whilst there are numerous exceptions for the tax itself, there is an immense finde if you fail to file.
There are a number of exceptions to the UHT. They include exceptions for seasonal properties and properties made inaccessible by a hazard or rented to tenants long term.
Even if your ownership qualifies for an exemption, you must still file an Underused Housing Tax return for the calendar year.
All Non-Resident, non-Canadians have to obtain a tax number to file this tax. If they do not comply, even if no tax is levied, they have to pay a penalty of CAD 5,000 (individuals) or CAD 10,000 (Corporations).
In case you are effected you should contact either a local CPA or a specialized international service provider (e.g. WEIDMANN (weidmann-law.com)).
But hings got worse in 2025: The government in Nova Scotia, a concervative government, implemented a change to the deed transfer tax in Nova Scotia. Whilst the deed transfer tax for Non-Residents was first implemented in 2022, adding up to 5% (plus the usual 1.5% everyone has to pay), the new deed transfer tax is double that 5%. So Non-Residents (not only Non-Canadian-Non-Residents but all Non-Residents) buying property in Nova Scotia will pay a whopping 11.5 % deed transfer tax. So excessive taxation has a new name: Nova Scotia. If you are interested in a seasonal property, you might want to look elsewhere, e.g. New Brunswick, Prince Edward Island or even outside of Canada, in the country of the Orange Oger.