Exemption for Qualifying Occupancy

Individual A and their common-law partner are not citizens or permanent residents of Canada. Their primary place of residence is outside Canada.

Individual A is the only person identified in the land registration system as an owner of a property in Canada (a residential condominium unit) that Individual A purchased in 2021.

Individual A signs a lease agreement with Individual B in June 2022 to give Individual B continuous occupancy of the property for six months from July 1 to December 31, 2022. Individual B is not related to Individual A or their common-law partner. Individual A and Individual B are acting in their own separate interests and are dealing with each other at arm’s length.

The period from July 1 to December 31, 2022, is a qualifying occupancy period for Individual A’s ownership of the property. It is a period of at least one month in the 2022 calendar year during which a Type 1 qualifying occupant (that is, an individual who deals at arm’s length with the owner and the owner’s spouse or common-law partner, and who is given continuous occupancy of the property under an agreement evidenced in writing) has continuous occupancy of the property. There are 184 days in the qualifying occupancy period for Individual A’s ownership of the property in the 2022 calendar year.

Individual A has to file a return for the property for the 2022 calendar year by April 30, 2023. Individual A does not have to pay the underused housing tax for their 100% ownership percentage of the property for the 2022 calendar year because at least 180 days in that calendar year are included in one or more qualifying occupancy periods for Individual A’s ownership of the property. 

Individual C and their spouse are not citizens or permanent residents of Canada. Their primary place of residence is outside Canada.

Individual C is the only person identified in the land registration system as an owner of a property in Canada (a residential condominium unit) that Individual C purchased in 2020.

In March 2022, Individual C signs a lease agreement with Individual D to give Individual D continuous occupancy of the property for nine months from April 1 to December 31, 2022. Individual D and Individual C’s spouse are siblings. Therefore, Individual C and Individual D do not deal with each other at arm’s length. Individual D agrees to pay an amount equal to fair rent for the nine months that they have continuous occupancy of the property.

The period from April 1 to December 31, 2022, is a qualifying occupancy period for Individual C’s ownership of the property. It is a period of at least one month in the 2022 calendar year during which a Type 1 qualifying occupant (that is, an individual who does not deal at arm’s length with the owner or the owner’s spouse or common-law partner, who is given continuous occupancy of the property under an agreement evidenced in writing, and who pays fair rent or more) has continuous occupancy of the property. There are 275 days in the qualifying occupancy period for Individual C’s ownership of the property in the 2022 calendar year.

Individual C has to file a return for the property for the 2022 calendar year by April 30, 2023. Individual C does not have to pay the underused housing tax for their 100% ownership percentage of the property for the 2022 calendar year because at least 180 days in that calendar year are included in one or more qualifying occupancy periods for Individual C’s ownership of the property.

Individual E and their spouse are not citizens or permanent residents of Canada. Their primary place of residence is outside Canada.

Only Individual E is identified in the land registration system as an owner of a property in Winnipeg (a residential condominium unit) that Individual E purchased in 2017. Neither Individual E nor their spouse is an owner of any other residential properties in Canada.

In late 2021, Individual E receives a Canadian work permit that authorizes Individual E to work for an employer in Winnipeg for six months from January 1 to June 30, 2022. Individual E has continuous occupancy of the property for the six-month period. Individual E returns to their primary residence outside Canada for a week once every two months to visit their spouse and children.

For each calendar month in the six-month period, Individual E occupies the property for a greater number of days than the number of days they occupy any other place. No one else occupies the property when Individual E visits their spouse and children outside Canada.

The period from January 1 to June 30, 2022, is a qualifying occupancy period for Individual E’s ownership of the property. It is a period of at least one month in the 2022 calendar year during which a Type 2 qualifying occupant (that is, an owner who occupies the property to pursue authorized work under a Canadian work permit) has continuous occupancy of the property. There are 181 days in the qualifying occupancy period for Individual E’s ownership of the property in the 2022 calendar year.

Individual E has to file a return for the property for the 2022 calendar year by April 30, 2023. Individual E does not have to pay the underused housing tax for their 100% ownership percentage of the property for the 2022 calendar year because at least 180 days in that calendar year are included in one or more qualifying occupancy periods for Individual E’s ownership of the property.

Individual F is not a citizen or permanent resident of Canada but their spouse, Individual G, is a citizen of Canada. Their primary place of residence is outside Canada.

Individual F is the only person identified in the land registration system as an owner of a property in Canada (a detached house) that Individual F purchased in 2018. Neither Individual F nor Individual G is an owner of any other residential properties in Canada.

Individual G travels to Canada each year to spend time with family and friends and occupies the property while in Canada. Individual G has continuous occupancy of the property for six months in the 2022 calendar year from April 1 to September 30, 2022.

For each calendar month in the six-month period, Individual G occupies the property for a greater number of days than the number of days they occupy any other place. No one else occupies the property when Individual G returns to their primary residence outside Canada.

The period from April 1 to September 30, 2022, is a qualifying occupancy period for Individual F’s ownership of the property. It is a period of at least one month in the 2022 calendar year during which a Type 2 qualifying occupant (that is, an owner’s spouse who is a citizen of Canada) has continuous occupancy of the property. There are 183 days in the qualifying occupancy period for Individual F’s ownership of the property in the 2022 calendar year.

Individual F has to file a return for the property for the 2022 calendar year by April 30, 2023. Individual F does not have to pay the underused housing tax for their 100% ownership percentage of the property for the 2022 calendar year because at least 180 days in that calendar year are included in one or more qualifying occupancy periods for Individual F’s ownership of the property.

An individual is not a citizen or permanent resident of Canada and the individual’s primary place of residence is outside Canada. The individual is the only person identified in the land registration system as an owner of a property in Edmonton (a detached house) that the individual purchased in 2020. The individual is not an owner of any other residential properties in Canada.

In late 2021, the individual receives a Canadian work permit that authorizes them to work for an employer in Edmonton for nine months from January 1 to September 30, 2022. The individual intends to reside at the Edmonton property during that period while working under the work permit. The individual leaves Edmonton in May and June to visit family outside Canada.

The individual physically occupies the property from:

• January 1 to May 10
• May 21 to June 10
• July 1 to September 30

As the owner of the property, the individual has the right to physically occupy the property throughout the entire nine-month period or to give that right to someone else for any part of that period. The individual does not give that right to someone else for any part of the nine-month period, therefore, no one else occupies the property when the individual visits family outside Canada.

The period from January 1 to September 30, 2022, is a qualifying occupancy period for the individual’s ownership of the property. It is a period of at least one month in the 2022 calendar year during which a Type 2 qualifying occupant (that is, an owner who occupies the property to pursue authorized work under a Canadian work permit) has continuous occupancy of the property.

For the calendar month of May 2022, the individual physically occupies the property for 21 days. Although the individual does not occupy the property for 10 days (from May 11 to May 20), the entire calendar month is included in the qualifying occupancy period for the individual’s ownership of the property because the individual occupies the property for a greater number of days than the number of days they occupy any other place. Therefore, the total number of days that qualify for May 2022 is 31 days.

For the calendar month of June 2022, the individual occupies a place other than the property for 20 days. Although the individual occupies the property for 10 days (from June 1 to June 10), the entire calendar month is excluded from the qualifying occupancy period for the individual’s ownership of the property because they occupy a place other than the property for a greater number of days.

There are 243 days (that is, 31 days in January, 28 days in February, 31 days in March, 30 days in April, 31 days in May, 0 days in June, 31 days in July, 31 days in August and 30 days in September) in the qualifying occupancy period for the individual’s ownership of the property in the 2022 calendar year.

The individual has to file a return for the property for the 2022 calendar year by April 30, 2023. The individual does not have to pay the underused housing tax for their 100% ownership percentage of the property for the 2022 calendar year because at least 180 days in that calendar year are included in one or more qualifying occupancy periods for the individual’s ownership of the property.

Individual J and Individual K are spouses who are not citizens or permanent residents of Canada. Their primary place of residence is outside Canada.

Individual J is the only person identified in the land registration system as an owner of a property in Calgary (a detached house) that Individual J purchased in 2020. Neither Individual J nor Individual K is an owner of any other residential properties in Canada.

In late 2021, Individual J and Individual K each receive a Canadian work permit that authorizes them to work for an employer in Calgary for five months from January 1 to May 31, 2022.

In 2022, Individual J and Individual K each have continuous occupancy of the property for the five-month period they work in Calgary under their respective work permits. For each calendar month in the five-month period, they each occupy the property for a greater number of days than the number of days either of them occupies any other place.

The period from January 1 to May 31, 2022, represents two separate qualifying occupancy periods for Individual J’s ownership of the property. It is a period of at least one month in the 2022 calendar year during which two separate Type 2 qualifying occupants have continuous occupancy of the property:

• Individual J is an owner of the property who occupies the property to pursue authorized work under a Canadian work permit
• Individual K is an owner’s spouse who occupies the property to pursue authorized work under a Canadian work permit

There are 151 days (that is, 31 days in January, 28 days in February, 31 days in March, 30 days in April and 31 days in May) in each of the two qualifying occupancy periods of the property in the 2022 calendar year.

No day can be counted more than once

To qualify for the exemption for qualifying occupancy for the 2022 calendar year, at least 180 days must be included in one or more qualifying occupancy periods for Individual J’s ownership of the property. No single day may be counted more than once to determine whether the 180-day threshold is met.

The 151 days can be counted in a qualifying occupancy period for Individual J’s continuous occupancy of the property or Individual K’s continuous occupancy of the property, but not both.

To determine whether the 180-day threshold is met for the 2022 calendar year, the number of days may be counted as either of the following:

• 151 days for Individual J’s continuous occupancy of the property for January 1 to May 31, 2022, plus 0 days for Individual K’s continuous occupancy of the property for the same period for a total of 151 days
• 0 days for Individual J’s continuous occupancy of the property for January 1 to May 31, 2022, plus 151 days for Individual K’s continuous occupancy of the property for the same period for a total of 151 days

Individual J has to file a return for the property for the 2022 calendar year by April 30, 2023. Individual J’s ownership of the property does not qualify for any other exemption, therefore, Individual J also has to pay the underused housing tax for their 100% ownership percentage of the property for the 2022 calendar year because fewer than 180 days in that calendar year are included in one or more qualifying occupancy periods for Individual J’s ownership of the property.

Individual L and Individual M are spouses who are not citizens or permanent residents of Canada. Their primary place of residence is outside Canada.

Individual L is the only person identified in the land registration system as an owner of a property in Toronto (a residential condominium unit) that Individual L purchased in 2018. Neither Individual L nor Individual M is an owner of any other residential properties in Canada.

Individual L

In early 2022, Individual L receives a Canadian work permit that authorizes them to work for an employer in Toronto for five months from July 1 to November 30, 2022.

In 2022, Individual L has continuous occupancy of the property for the five-month period they work in Toronto under the work permit. For each calendar month in the five-month period, Individual L occupies the property for a greater number of days than the number of days they occupy any other place.

The period from July 1 to November 30, 2022, is a qualifying occupancy period for Individual L’s ownership of the property. It is a period of at least one month in the 2022 calendar year during which a Type 2 qualifying occupant (that is, an owner who occupies the property to pursue authorized work under a Canadian work permit) has continuous occupancy of the property.

There are 153 days (that is, 31 days in July, 31 days in August, 30 days in September, 31 days in October and 30 days in November) in the qualifying occupancy period of the property in the 2022 calendar year for Individual L’s continuous occupancy.

Individual M

Individual M also receives a Canadian work permit in early 2022 that authorizes them to work for an employer in Toronto for five months from August 1 to December 31, 2022.

In 2022, Individual M has continuous occupancy of the property for the five-month period they work in Toronto under the work permit. For each calendar month in the five-month period, Individual M occupies the property for a greater number of days than the number of days they occupy any other place.

The period from August 1 to December 31, 2022, is a qualifying occupancy period for Individual L’s ownership of the property. It is a period of at least one month in the 2022 calendar year during which a Type 2 qualifying occupant (that is, the owner’s spouse who occupies the property to pursue authorized work under a Canadian work permit) has continuous occupancy of the property.

There are 153 days (that is, 31 days in August, 30 days in September, 31 days in October, 30 days in November and 31 days in December) in the qualifying occupancy period of the property in the 2022 calendar year for Individual M’s continuous occupancy.

No day can be counted more than once

To qualify for the exemption for qualifying occupancy for the 2022 calendar year, at least 180 days must be included in one or more qualifying occupancy periods for Individual L’s ownership of the property. No single day may be counted more than once to determine whether the 180-day threshold is met.

There are 122 days (that is, 31 days in August, 30 days in September, 31 days in October and 30 days in November) in the 2022 calendar year that overlap two qualifying occupancy periods of the property.

These days cannot be counted more than once to determine whether the 180-day threshold is met. They can be counted in a qualifying occupancy period for Individual L’s continuous occupancy of the property or Individual M’s continuous occupancy of the property, but not both.

To determine whether the 180-day threshold is met for the 2022 calendar year, the number of days may be counted as either of the following:

• 153 days for Individual L’s continuous occupancy of the property from July 1 to November 30, 2022, plus 31 days for Individual M’s continuous occupancy of the property in December 2022 for a total of 184 days
• 31 days for Individual L’s continuous occupancy of the property in July 2022 plus 153 days for Individual M’s continuous occupancy of the property from August 1 to December 31, 2022, for a total of 184 days

Individual L has to file a return for the property for the 2022 calendar year by April 30, 2023. Individual L does not have to pay the underused housing tax for their 100% ownership percentage of the property for the 2022 calendar year because at least 180 days in that calendar year are included in one or more qualifying occupancy periods for Individual L’s ownership of the property.