From CITQ to income taxes, GST/QST and the sale — the essential rules explained simply.
March 2026
You own a cottage in Lanaudière — perhaps in Mandeville, Sainte-Émélie-de-l'Énergie, Saint-Gabriel or on a lakefront — and you rent it to vacationers. The popularity of rental cottages has exploded in recent years, and with it, regulatory and tax obligations have followed.
This guide fills that gap. We explain the essentials: what to declare, how taxes work, the deductions you're entitled to, and what to anticipate if you ever sell. No jargon, no detours.
Before even addressing taxation, there's the regulatory side. In Quebec, all tourist rentals of less than 31 days are governed by law. Concretely, this means:
👉 To learn more:
All your cottage rental income — Airbnb, VRBO, word-of-mouth — is taxable and must be reported in your annual tax return.
👉 Download the forms: T776 — CRA and TP-128 — Revenu Québec. For a complete guide: Reporting Your Rental Income in Quebec.
The GST (Goods and Services Tax — federal) and QST (Quebec Sales Tax — provincial) apply to short-term rentals. Short-term rental (less than 30 consecutive days) is a commercial activity in the eyes of tax authorities.
| Situation | GST (5%) | QST (9.975%) |
|---|---|---|
| ST revenue < $30,000/4 quarters | Voluntary GST/QST registration: registering before the $30,000 threshold allows you to recover taxes on your expenses. | Same |
| ST revenue > $30,000/4 quarters | Mandatory registration | Mandatory registration |
| Rental > 30 consecutive days | Exempt | Exempt |
👉 Everything about the three taxes (GST, QST and accommodation tax): Accommodation Tax, GST and QST — The Guide for Short-Term Rentals.
The reality for most cottage owners: you rent it out, but you also enjoy it personally. For tax purposes, you can only deduct the portion of expenses proportional to rental use.
The method accepted by the CRA: Weeks rented ÷ 52 weeks = rental ratio.
| Weeks rented / year | Rental ratio | Example: $4,200 in property taxes |
|---|---|---|
| 10 weeks | 19.2% | $808 |
| 20 weeks | 38.5% | $1,617 |
| 30 weeks | 57.7% | $2,423 |
| 42 weeks | 80.8% | $3,394 |
The same categories as a rental property, with some specific features of cottages:
👉 For the complete list with examples and amounts: Tax Deductions for Your Rental Cottage in Lanaudière.
A rental cottage does not have the same tax treatment as a principal residence on sale — and this can represent a significant tax impact if you don't prepare for it.
Renting a cottage in Lanaudière is a great way to optimize a real estate asset. But it requires the fiscal and regulatory rigour that is often underestimated at the start. The good news: by getting organized from the beginning, all of this becomes routine.
📌Concrete action: if you don't yet have your CITQ number, start there — it's the foundation of everything else. Then set up a simple occupancy log and expense file.
Q: Do I need a CITQ number to rent my cottage in Lanaudière?
A: Yes. All tourist rentals of less than 31 days in Quebec must be registered with the CITQ. Without a valid number, you are operating illegally — fines can reach $25,000.
Q: Do I have to pay GST/QST if I rent my cottage on Airbnb?
A: If your ST revenues exceed $30,000 over 4 consecutive quarters, you must register for taxes. Registering before this threshold is often advantageous: you recover taxes on your expenses.
Q: How can I prove my cottage is primarily for rental use?
A: Keep a detailed occupancy log. Airbnb reports, your contractor invoices and your CITQ number are also useful evidence.
Q: Is there a capital gain when I sell my rental cottage?
A: Yes. The sale of a rental cottage generates a taxable capital gain at 50%. If you claimed CCA, the recapture is added, taxed as ordinary income.
