The Underused Housing Tax (UHT) is a new tax intended to apply to underused housing in Canada owned directly or indirectly and wholly or partly by non-resident, non-Canadians. UHT obligations apply for calendar years (beginning with 2022) to affected owners of residential property in Canada on December 31 of the relevant year.

For most NSOLA cottage owners there is nothing to do. But if you are not a Canadian resident, or if you own the property through a business, trust or partnership you may be required to file a form and pay a tax to the Canada Revenue Agency (CRA) before April 30; there can be significant penalties for failure to comply.

This article presents a good overview of the requirements, but of course you should refer to the CRA or a tax professional for definitive advice.