Full analysis of the most common tax refund cases for overseas buyers
Before I introduced to you what is the foreign buyers tax, who needs to pay it, and where to buy a house in Canada, you need to pay the 15% foreign buyers tax. However, in the actual operation process, many people are still at a loss when encountering specific problems. So we summarize several of the most common cases, and give you a detailed analysis in this video.
Case 1: As long as I have studied for two years or worked for one year after buying a house, am I eligible for a tax refund?
In fact, it is not so simple to understand. Because the tax bureau has strict regulations, that is, before you buy a house, or on the day of handing over the house, you are already a full-time student or have a full-time job, and then after handing over the house, you have to study full-time for 2 years or work full-time Only after completing one year of conditions can you be eligible to apply for a tax refund.
Case 2: I was a full-time student before buying a house, and I started working full-time one year after buying a house. Am I eligible for a tax refund?
This is unfortunate and you are not eligible for a tax refund. As we have said in the first case just now, the tax bureau has strict regulations. If you were a full-time student before buying a house, you must still be a full-time student for two years after handing over the house before you can get a tax refund. Before you bought the house, you worked full-time, then after the house is handed over, you continue to work full-time for one full year before you are eligible for a tax refund. However, if these two identities change after you hand over the house, you cannot apply for a tax refund.
Case 3: The school I study is 2 hours away from the house I bought. Am I eligible for a tax refund?
This situation is quite special, and the application has certain risks, depending on how the tax bureau judges. If you claimed rent payments while you owned your home, you could be denied a tax refund because it doesn't prove that the home is your primary residence.
Case 4: The house I bought is an off-plan property, how should I pay overseas buyer tax? How to apply for tax refund?
For uncompleted properties that are generally transferred, 15% of the final transaction price is subject to the overseas buyer's tax, and the tax refund is also based on the tax amount you paid.
Case 5: After I bought a house, due to some reasons, I rented out part of the house, can I still get a refund of foreign buyers tax?
Tax refunds are not available in this case. Because once the house is rented out in any form, it will directly lose the eligibility for tax rebates. This needs everyone's attention.
Case 6: I did not check in within 60 days after handing over the house, will it affect the tax refund?
It will be affected. Because the tax bureau stipulates that when applying for tax refund, you need to submit proof of occupancy within 60 days after the delivery date, such as: driver's license change of address proof, bank statement after change, car insurance change of address proof, moving receipt, etc. Therefore, it is best to move in within 60 days after handing over the house, and collect and keep the above supporting documents to avoid unnecessary troubles.
Case 7: I am an international student, my parents guaranteed me a loan from the bank to buy a house, and my name is only on the real estate certificate, can I apply for a refund of NRST Overseas Seller Tax?
If your parents guarantee you and only your name is on the real estate certificate, then the possibility of your tax refund will not be affected, but if the parents’ names appear on the real estate certificate, even if the proportion For a small part, there is no way to get a tax refund.
Case 8: My husband and I have been working and living in China. My husband is a Canadian citizen and I have always been a Chinese. Now we want to invest in a Canadian real estate. Do we need to pay overseas buyer tax?
Canadian citizens or permanent residents and foreign spouses who buy a house in Ontario can be exempted from the 15% foreign buyer purchase tax. In this case, there is no need to pay, because as long as one of the husband and wife is a Canadian citizen or permanent resident, they are exempt from paying overseas buyer tax.
Case 9: I am a Chinese. I plan to open a company in Canada. I am interested in an office building and want to use it as a commercial office. Do I need to pay overseas buyer tax?
If the property you buy is for commercial purposes such as office buildings, factories, farms, etc., but not for self-occupancy, then you do not need to pay overseas seller tax.
Case 10: I am applying for immigration, at what stage can I not pay the Ontario Overseas Buyer Property Purchase Tax?
If you have received a provincial nomination letter from the Ontario Immigration Bureau before buying a house, you will be exempt from paying the 15% Ontario foreign buyer purchase tax. However, if you have already paid, you can apply for a tax refund after the house is handed over and you get permanent residence status.
Case 11: I just graduated and found a full-time job in Toronto, but I have not yet obtained Canadian permanent residence status. Recently, my parents gave me the down payment to buy a house for me. Can I apply for a tax refund?
In this case, if only your name is written on the real estate certificate, and you can prove that the money from your parents is a gift, you can apply for a tax refund. In this case, if only your name is written on the real estate certificate, and you can prove that the money from your parents is a gift, you can apply for a tax refund.