Vacant Housing Tax in Montreal for Divided Co-ownerships

Montreal’s vacant housing tax aims to return unoccupied units to the market and support the residential supply. In divided co-ownership, it raises practical questions for co-owners, the syndicate and the board of directors (board). Who must file a declaration? What evidence should be kept? How can penalties be avoided while respecting privacy and the declaration of co-ownership?

This article provides a practical guide for syndicates and boards of directors. You will find the roles of each party, common exemptions, typical deadlines and best practices for documenting condo occupancy without adding to the administrative burden.

Who is subject to the tax and how Montreal applies it

• The primary taxpayer is generally the co-owner of the unit, since the tax is associated with a specific fraction in the land register.
• The City assesses occupancy over an annual reference period, based on indicators such as actual residence, rental activity or recognized reasons for absence. The exact criteria and forms are municipal; check the City’s official communications for the final details.
• The legal basis for municipal taxation is found notably in the Act respecting municipal taxation and the Charter of Ville de Montréal, metropolis of Quebec. These statutes govern the taxation powers of municipalities and Montreal.

Useful references:

• LégisQuébec — Act respecting municipal taxation
• LégisQuébec — Charter of Ville de Montréal, metropolis of Quebec

In a divided co-ownership, the syndicate is not the taxpayer for a private portion, except in a particular case provided for by law or a judgment. However, it becomes a key participant in informing co-owners, standardizing practices and responding to possible requests for documentary verification.

Responsibilities of the syndicate and board in a divided co-ownership

The Civil Code of Quebec entrusts the syndicate with administering the common portions and preserving the building. In this context, the board of directors can implement tools that indirectly help co-owners comply with their municipal obligations, without taking their place.

• Information and communication: distribute clear reminders before the declaration period through the intranet, bulletin board, newsletter or annual general meeting minutes.
• Occupant and lease register: keep up to date the information already required by the declaration of co-ownership and the by-laws of the immovable, such as the identification of occupants or tenants and the term of leases.
• Move-in/move-out process: standardize key handovers, elevator bookings and the collection of contact information to better track occupancy without collecting excessive data.
• Respect for privacy: limit collection to necessary data, secure the archives and establish reasonable retention periods, consistently with personal information protection obligations.

For reference, the purpose of the syndicate and the division of powers are set out in the Civil Code (see, for example, section 1039 C.C.Q. on the purpose of the syndicate). Paraphrase: the purpose of the syndicate is to preserve the building and administer the common portions. Reference:

• LégisQuébec — C.C.Q., s. 1039

In practice, the board can add these points to the agenda of an annual general meeting and then record the decisions in the minutes. If necessary, an update to the by-laws of the immovable can specify information obligations relating to occupancy, while complying with the declaration of co-ownership.

• multiRent resource: our administrative management services include document management, support for the board and communication optimization.

Common exemptions and special cases in a divided co-ownership

Each municipality specifies its exemptions. In Montreal, typical cases may include, depending on the evidence and municipal criteria:

• Major work covered by a permit that makes the unit uninhabitable for a specified period.
• A new building or newly created fraction that is still being marketed by the developer.
• An estate or the temporary incapacity of the co-owner, supported by documentary evidence.
• A condo offered for sale at a price considered reasonable for the local market, for a minimum period.
• Temporary absence for work, health or study reasons, subject to conditions.

Points for the board and syndicate to keep in mind:

• The evidence belongs to the co-owner. The syndicate does not have to assess the merits of an exemption, unless it already holds objective documents relating to the common portions (e.g., an elevator permit preventing moves, or the closure of a floor for work on the common portions).
• When work affects the common portions and makes access to the units impossible, carefully keep the dates, notices and permits. These documents may help co-owners justify a period of non-occupancy.
• In a sale, certain brokers will require information about common expenses, the contingency fund and compliance matters. The seller should disclose recurring costs related to the unit. Also see the OACIQ information on the seller’s declaration:

• OACIQ — Seller’s declaration

Process, deadlines and penalties (current as of 2026-08-17)

• Declaration: the City usually issues an annual form to be completed by each unit owner. The period and platform are specified in the municipal notice.
• Billing and payment: if the tax applies, the amount is generally added to a municipal tax account. Interest and fees for late payment follow municipal rules.
• Failure to file: failing to file a declaration or filing an inaccurate declaration may result in penalties and an automatic presumed assessment. The amounts and procedures are set out in the municipal notice.

Operational advice for syndicates:

• Distribute an internal calendar of reminders before and during the declaration period.
• Place a frequently asked questions section on the co-ownership intranet with official municipal links and a reminder of the typical evidence to retain.
• Direct co-owners to the appropriate contacts without providing legal advice.

General references:

• RGCQ — Co-ownership management practices
• LégisQuéQuébec — Act respecting municipal taxation
• LégisQuébec — Charter of Ville de Montréal

Best practices for board document management

A syndicate’s strength lies in clear processes that everyone knows and applies consistently. Here are some practical measures that help respond to requests while limiting risks:

• Standardize move-in and move-out forms, including emergency contact information and the rental contact person, where applicable.
• Update the occupant register whenever a change occurs and establish a notification mechanism for the condominium manager.
• Set out, in the by-laws of the immovable, the documents required for renting (e.g., a copy of the lease and the tenant’s contact information), consistently with the declaration of co-ownership.
• Record in the annual general meeting minutes decisions concerning data collection and retention periods in order to document compliance.
• Provide one channel for document requests (e.g., the syndicate’s email address), with standard response times.

To reduce the board’s workload, explore tools and services:

• multiRent can support the financial management of common expenses and certificates, and equip your board to distribute reminders.
• See our packages to structure day-to-day administration without adding multiple suppliers.
• Browse the blog for more practical guides on co-ownership living in Montreal and the South Shore.

FAQ — Vacant Housing Tax in a Divided Co-ownership

Q1. Can the syndicate pay the tax on behalf of a co-owner?

A. Except in a very specific case, no. The tax targets the private portion and its co-owner. The syndicate should not confuse this tax with condo fees or assessments. If common expenses are incurred to produce extraordinary documents, the by-laws may provide for an administrative fee.

Q2. Can a co-owner require the syndicate to provide an occupancy certificate?

A. The syndicate can provide objective facts it already holds (e.g., a move-in register), without certifying actual occupancy. Occupancy remains a matter concerning the private portion that only the co-owner can demonstrate with their own evidence.

Q3. Does a short-term rental avoid the tax?

A. Not guaranteed. Some short-term rentals may even be prohibited by the declaration of co-ownership or the by-laws of the immovable. Before marketing the unit, the co-owner must check the municipal regulations and the co-ownership framework.

This article provides general information and does not constitute legal advice. Consult a lawyer or notary for your situation.

This article provides general information and is not a substitute for advice from a tax specialist or accountant. Refer to Revenu Quebec and the CRA for the exact rules.

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