The full name of the foreign buyer tax is Non-Resident Speculation Tax, or NRST for short. NRST applies to foreign buyers who purchase residential properties in the Greater Golden Horseshoe Region (GGH) on or after April 21, 2017. If the property purchased does not exceed 6 family homes, a 15% foreign buyer tax will be imposed. Commercial, agricultural, and industrial properties are not subject to tax. Residential and other types of mixed properties are taxed according to the value of the residential portion. Let's take a look at the common questions about tax refunds!
Question 1: Do I qualify for a tax refund as long as I have studied for 2 years or worked for 1 year after buying a house?
It cannot be judged so simply. The tax bureau has strict regulations. You must be studying or working full-time on or before the house handover date (closing date), and then have studied for 2 years or worked for 1 year to be eligible for tax refund.
Question 2: I was studying full-time before I bought the house, and I started working full-time one year after I bought the house. Do I qualify for a tax refund?
Unfortunately, you do not qualify for a tax refund in this situation. The tax bureau stipulates that if you were a student before buying a house, you can only claim a tax refund for two years as a full-time student; if you were a full-time employee before buying a house, you can only claim a tax refund for full-time employment. If you switch from studying to working, or vice versa, you will lose the tax refund eligibility, so be sure to pay attention to this.
Question 3: The school I attend is a 2-hour drive from the house I bought. Am I eligible for a tax refund?
This situation is quite special and there are certain risks in applying for it. It depends on how the tax bureau judges it. If you have declared rental expenses during the period of owning the house, you may be denied a tax refund because the house cannot be proved to be your main residence.
Question 4. The house I bought is a pre-sale property. At what price should I pay the foreign buyer tax? And how can I get a tax refund?
When transferring a property under construction, you pay the overseas buyer tax based on the final transaction price, and when you get a refund, the amount of tax you paid will also be used for the refund.
Question 5: After I bought a house, I rented out part of it for some reason. Can I still get a refund on the foreign buyer’s tax?
No! Please note that once the house is rented out in any form, it will directly lose the tax refund qualification, remember!
Question 6. After I bought a house, for some reason I did not move in within 60 days after delivery. Will it affect my tax refund?
The tax bureau stipulates that when applying, you need to submit proof of occupancy within 60 days after the date of handover. For example: proof of change of address on driver's license, changed bank statement, proof of change of address on car insurance, moving receipt, etc., which can prove that you moved in within 60 days. Therefore, we remind you to move in within 60 days and collect and keep the above various documents.
Question 7. The house I bought is in my name and that of one of my parents. Can I get a refund on the foreign buyers’ tax?
No! If the house is under the names of two people, both parties can only be married or have been under common law for more than 3 years.
Question 8. During my studies, I had part-time study in certain semesters for some reason. Can I still get a tax refund?
It depends on the specific circumstances. If it is an objective reason, such as taking a leave of absence due to illness, a teachers' strike, etc., you need to provide documentary evidence and it is possible to refund the overseas buyer's tax.
